Question 1

Health care organizations that are privately owned and operated to provide a return to investors follow GASB standards.

Accepted Answer

A) True 
 B)False

Question 2

Governmental owned health care providers use the accrual basis of accounting and the economic resources measurement focus.

Accepted Answer

A) True 
 B)False

Question 3

Answer the following questions:
(a)Other than a balance sheet,what are the remaining financial statements required of private not-for-profit health care entities?
(b)What accounts appear in the equity section of the balance sheet of commercial hospitals,government owned hospitals,and private not-for-profit hospitals?

Accepted Answer

(a)Health care entities are required to

Question 4

The AICPA Audit and Accounting Guide:
 Health Care Organizations applies equally to private not-for-profit and investor-owned but not governmentally owned health care organizations.

Accepted Answer

A) True 
 B)False

Question 5

Health care organizations that are privately owned and operated to provide a return to investors follow FASB standards excluding those standards specifically for not-for-profits.

Accepted Answer

A) True 
 B)False

Question 6

What are the components of the equity section of the Balance Sheet of Statements of Net Assets,as appropriate for the following types of organizations?

Accepted Answer

Unrestricted Net Assets Temporarily Rest

Question 7

A hospital reported the following uncollectible amounts:
$20,000 for services rendered to homeless individuals with no intention of collection.
$30,000 for services rendered with the expectation of collection,but proved to be uncollectible.
What amount should be reported in revenues and bad debt expense for these items?

Accepted Answer

A)  Revenues: $50,000; Bad Debt Expense: 50,000. 
B)  Revenues: $30,000; Bad Debt Expense: 30,000. 
C)  Revenues: $50,000; Bad Debt Expense: 30,000. 
D)  Revenues: $0; Bad Debt Expense: 0. 
A)  Revenues: $50,000; Bad Debt Expense: 50,000. 
B)  Revenues: $30,000; Bad Debt Expense: 30,000. 
C)  Revenues: $50,000; Bad Debt Expense: 30,000. 
D)  Revenues: $0; Bad Debt Expense: 0.

Question 8

The AICPA Health Care Guide provides additional guidance regarding accounting and reporting requirements for voluntary health and welfare organizations.

Accepted Answer

A) True 
 B)False

Question 9

The AICPA Health Care Guide requires a performance indicator in the financial statements of private sector not-for-profit health care providers.

Accepted Answer

A) True 
 B)False

Question 10

During the month of December,Godiva Hospital billed patients $45,000,billed 3rd parties $65,000,and provided $10,000 of charity care.How much should Godiva report as Accounts Receivable?

Accepted Answer

A)  $120,000. 
B)  $45,000. 
C)  $110,000. 
D)  $65,000. 
A)  $120,000. 
B)  $45,000. 
C)  $110,000. 
D)  $65,000.

Question 11

Which of the following is true regarding accounting and financial reporting for not-for-profit health care organizations?

Accepted Answer

A)  Unrealized gains and losses on other than trading securities must be reported below the performance indicator. 
B)  Expenses must be reported by function in the Statement of Operations or disclosed in the notes. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Unrealized gains and losses on other than trading securities must be reported below the performance indicator. 
B)  Expenses must be reported by function in the Statement of Operations or disclosed in the notes. 
C)  Both of the above. 
D)  Neither of the above.

Question 12

Private-sector health care organizations use the three-category FASB format for the Statement of Cash flows,while public sector organizations use the four-category GASB format.

Accepted Answer

A) True 
 B)False

Question 13

Private not-for-profit health care organizations follow standards set by:

Accepted Answer

A)  GASB. 
B)  FASB. 
C)  SEC. 
D)  AICPA. 
A)  GASB. 
B)  FASB. 
C)  SEC. 
D)  AICPA.

Question 14

As both the FASB and the GASB approved the AICPA Health Care Guide,its requirements constitute Category A GAAP and must be followed by all health care organizations.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following are true with respect to health care organizations?

Accepted Answer

A)  Expenses must be reported using their natural classifications. 
B)  Assets that have limited use are temporarily restricted on the balance sheet. 
C)  Private sector not-for-profits health care entities must disclose expenses by functional classifications. 
D)  All of the above are true. 
A)  Expenses must be reported using their natural classifications. 
B)  Assets that have limited use are temporarily restricted on the balance sheet. 
C)  Private sector not-for-profits health care entities must disclose expenses by functional classifications. 
D)  All of the above are true.

Question 16

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

Accepted Answer

A)  Not recorded as revenues but the costs are expensed as normal. 
B)  Recorded as revenues and the costs are expensed as normal. 
C)  Not recorded as revenues and the costs are not expensed. 
D)  None of the above. 
A)  Not recorded as revenues but the costs are expensed as normal. 
B)  Recorded as revenues and the costs are expensed as normal. 
C)  Not recorded as revenues and the costs are not expensed. 
D)  None of the above.

Question 17

The equity section of the Statement of Net Assets of a private not-for-profit hospital may contain which of the following descriptions?

Accepted Answer

A)  Fiduciary, Proprietary, and General. 
B)  Reserved, Unreserved, and Undesignated. 
C)  Invested in Capital Assets Net of Related Debt, Restricted, and Unrestricted. 
D)  Permanently Restricted, Temporarily Restricted, and Unrestricted. 
A)  Fiduciary, Proprietary, and General. 
B)  Reserved, Unreserved, and Undesignated. 
C)  Invested in Capital Assets Net of Related Debt, Restricted, and Unrestricted. 
D)  Permanently Restricted, Temporarily Restricted, and Unrestricted.

Question 18

According to The AICPA Health Care Guide,Transfers among affiliated organizations should not be included in the determination of a performance indicator for a health care organization.

Accepted Answer

A) True 
 B)False

Question 19

Health care organizations that are privately owned and operated to provide a return to investors follow which standards:

Accepted Answer

A)  GASB. 
B)  FASB, excluding standards specifically for not-for-profits. 
C)  FASB, including standards specifically for not-for-profits. 
D)  None of the above. 
A)  GASB. 
B)  FASB, excluding standards specifically for not-for-profits. 
C)  FASB, including standards specifically for not-for-profits. 
D)  None of the above.

Question 20

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

Accepted Answer

A)  Fiduciary, Proprietary, and General. 
B)  Reserved, Unreserved, and Undesignated. 
C)  Invested in Capital Assets Net of Related Debt, Restricted, and Unrestricted. 
D)  Permanently Restricted, Temporarily Restricted, and Unrestricted. 
A)  Fiduciary, Proprietary, and General. 
B)  Reserved, Unreserved, and Undesignated. 
C)  Invested in Capital Assets Net of Related Debt, Restricted, and Unrestricted. 
D)  Permanently Restricted, Temporarily Restricted, and Unrestricted.

Health care organizations that are privately owned and operated to provide a return to investors follow GASB standards.

Governmental owned health care providers use the accrual basis of accounting and the economic resources measurement focus.

The AICPA Audit and Accounting Guide: Health Care Organizations applies equally to private not-for-profit and investor-owned but not governmentally owned health care organizations.

Health care organizations that are privately owned and operated to provide a return to investors follow FASB standards excluding those standards specifically for not-for-profits.

What are the components of the equity section of the Balance Sheet of Statements of Net Assets,as appropriate for the following types of organizations?

The AICPA Health Care Guide provides additional guidance regarding accounting and reporting requirements for voluntary health and welfare organizations.

The AICPA Health Care Guide requires a performance indicator in the financial statements of private sector not-for-profit health care providers.

During the month of December,Godiva Hospital billed patients $45,000,billed 3^rd parties $65,000,and provided $10,000 of charity care.How much should Godiva report as Accounts Receivable?

Which of the following is true regarding accounting and financial reporting for not-for-profit health care organizations?

Private-sector health care organizations use the three-category FASB format for the Statement of Cash flows,while public sector organizations use the four-category GASB format.

Private not-for-profit health care organizations follow standards set by:

As both the FASB and the GASB approved the AICPA Health Care Guide,its requirements constitute Category A GAAP and must be followed by all health care organizations.

Which of the following are true with respect to health care organizations?

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

The equity section of the Statement of Net Assets of a private not-for-profit hospital may contain which of the following descriptions?

According to The AICPA Health Care Guide,Transfers among affiliated organizations should not be included in the determination of a performance indicator for a health care organization.

Health care organizations that are privately owned and operated to provide a return to investors follow which standards:

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

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 12: Accounting for Hospitals and Other Health Care Providers

Health care organizations that are privately owned and operated to provide a return to investors follow GASB standards.

Governmental owned health care providers use the accrual basis of accounting and the economic resources measurement focus.

The AICPA Audit and Accounting Guide: Health Care Organizations applies equally to private not-for-profit and investor-owned but not governmentally owned health care organizations.

Health care organizations that are privately owned and operated to provide a return to investors follow FASB standards excluding those standards specifically for not-for-profits.

What are the components of the equity section of the Balance Sheet of Statements of Net Assets,as appropriate for the following types of organizations?

The AICPA Health Care Guide provides additional guidance regarding accounting and reporting requirements for voluntary health and welfare organizations.

The AICPA Health Care Guide requires a performance indicator in the financial statements of private sector not-for-profit health care providers.

During the month of December,Godiva Hospital billed patients $45,000,billed 3rd parties $65,000,and provided $10,000 of charity care.How much should Godiva report as Accounts Receivable?

Which of the following is true regarding accounting and financial reporting for not-for-profit health care organizations?

Private-sector health care organizations use the three-category FASB format for the Statement of Cash flows,while public sector organizations use the four-category GASB format.

Private not-for-profit health care organizations follow standards set by:

As both the FASB and the GASB approved the AICPA Health Care Guide,its requirements constitute Category A GAAP and must be followed by all health care organizations.

Which of the following are true with respect to health care organizations?

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

The equity section of the Statement of Net Assets of a private not-for-profit hospital may contain which of the following descriptions?

According to The AICPA Health Care Guide,Transfers among affiliated organizations should not be included in the determination of a performance indicator for a health care organization.

Health care organizations that are privately owned and operated to provide a return to investors follow which standards:

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

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

During the month of December,Godiva Hospital billed patients $45,000,billed 3^rd parties $65,000,and provided $10,000 of charity care.How much should Godiva report as Accounts Receivable?