Exam 12: Accounting for Hospitals and Other Health Care Providers

St.Mark's is a private not-for-profit hospital.At the end of December 2011,a donor pledged to make five payments of $75,000 each,on January 1,2012,2013,2014,2015,and 2016 to pay for operations in those years.The present value of these payments is $334,883,discounted at 6%.The contribution was not restricted as to purpose.Record all entries required for 2011 and 2012.

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

Differences between actual and estimated contractual adjustments require restatement of prior periods.

The AICPA Health Care Guide provides reporting requirements for all of the following organizations except:

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?

Investor owned health care organizations have the following equity section accounts:

Patient Service Revenue of hospitals is to be presented net of contractual adjustments in the Statement of Operations.

Which of the following is a required statement for a governmental hospital?

Which of the following is true regarding revenue recognition for health care organizations?

Which of the following is true regarding revenue recognition for health care organizations?

A private sector,not-for-profit hospital received a pledge of $150,000 in 2011 to be used for a building to be constructed in 2012 but contingent on the hospital being able to raise an equivalent amount from other donors.As of the end of 2011,half the amount had been raised from other donors.In 2012,the hospital raised the amount from other donors.The donor gave the $150,000 to the hospital in 2012 and the building was completed in 2012.In which year should the hospital recognize the $150,000 from the pledge?

Which of the following health care organizations have level "B" GAAP established by the AICPA's Audit and Accounting Guide: Health Care Organizations?

Which of the following is not correct with respect to reporting of expenses for health care organizations?

With respect to health care organizations private sector not-for-profits health care entities must disclose expenses by functional classifications.

The AICPA Audit and Accounting Guide: Health Care Organizations applies to:

For hospitals,contractual adjustments to 3rd party payers,such as insurance companies,are recorded with a debit to Contractual Adjustments (a contra-revenue account)and a credit to an allowance for contractual adjustments.

For hospitals,contractual adjustments to 3rd party payers,such as insurance companies,are recorded with a debit to Contractual Adjustment expense and a credit to accounts receivable.

The AICPA Health Care Guide applies to investor-owned,private not-for-profit,and government-owned hospitals.

An unrestricted balance sheet category used in health care reporting to show limitations on the use of assets due to bond covenant restrictions and governing board plans for future use is called:

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