Exam 12: Accounting for Hospitals and Other Health Care Providers

The statement reflecting revenues, expenses and other changes in unrestricted net assets for a private sector, not-for-profit hospital is called the:

With respect to health care organizations, assets that have limited use are temporarily restricted on the balance sheet.

The AICPA Health Care Guide prescribes a separate Statement of Operations and Statement of Changes in Net Assets.

Private not-for-profit health care organizations include what categories in the equity section of the Statement of Net Assets?

The equity section of the Statement of Net Assets of a government-owned hospital may contain which of the following descriptions?

A donor pledged $500,000 to a not-for-profit hospital in 2008 to conduct medical research, conditional on the hospital raising $500,000 from other donors. The other donors met the condition in 2009. The donor transferred the funds to the hospital in 2009. In which year would the revenue be recognized?

According to The Audit and Accounting Guide, Transfers among affiliated organizations should not be included in the determination of a performance indicator for a health care organization?

The AICPA Health Care Guide provides accounting and reporting requirements that override GASB and FASB standards, but apply only to health care providers.

Dukes Medical Center performed charity care at a cost of $4 million and a standard charge of $10 million. How much should Dukes recognize as revenue?

When accounting for health care organizations, services provided for charity care are:

A private not-for-profit entity estimated its Allowance for Contractual Adjustment. During the next year, the hospital found that the actual total of contractual adjustments applied to receivables on hand at the end of the previous year was $ 5,000 higher than the estimate. How should the difference be reported?