Question 1

What are third party payors? Why are their interests important in accounting for health care entities?

Accepted Answer

Third party payers include (1)insurance

Question 2

Which entry would be the correct entry on the donor's books to record a gift to a not-for-profit organization when control of the assets is retained by the donor?

Accepted Answer

A) debit expense-charitable contribution,credit cash. 
B) debit refundable advance to charity,credit cash. 
C) debit charitable pledge,creditcash. 
D) debit cash,creditliability to beneficiary. Edebit cash,credit refundable advance. 
A) debit expense-charitable contribution,credit cash. 
B) debit refundable advance to charity,credit cash. 
C) debit charitable pledge,creditcash. 
D) debit cash,creditliability to beneficiary. Edebit cash,credit refundable advance.

Question 3

Which account would be credited in recording a gift of medicine to a nursing home from an outside party?

Accepted Answer

A) Nonoperating Gain - Donations. 
B) Contractual Adjustments. 
C) Patient Service Revenues. 
D) Drugs and Medicines. 
E) Other Revenues - Donations. 
A) Nonoperating Gain - Donations. 
B) Contractual Adjustments. 
C) Patient Service Revenues. 
D) Drugs and Medicines. 
E) Other Revenues - Donations.

Question 4

When are unconditional promises to give recognized as revenues?

Accepted Answer

A) In the period the promise is received. 
B) In the period the promise is collected. 
C) In the period in which the conditions on which they depend are substantially met. 
D) In the period in which the conditions on which they depend have begun to be met. 
E) Unconditional promises from potential donors are not revenues. 
A) In the period the promise is received. 
B) In the period the promise is collected. 
C) In the period in which the conditions on which they depend are substantially met. 
D) In the period in which the conditions on which they depend have begun to be met. 
E) Unconditional promises from potential donors are not revenues.

Question 5

Historically,what was the pattern of reporting of not-for-profit organizations?
(1)Patterned after for-profit accounting
(2)Emphasis on separate fund types
(3)Disregard for the entire entity

Accepted Answer

A) 1 only. 
B) 2 only. 
C) 1 and 2 only. 
D) 1,2 and 3. 
E) 2 and 3 only. 
A) 1 only. 
B) 2 only. 
C) 1 and 2 only. 
D) 1,2 and 3. 
E) 2 and 3 only.

Question 6

Which of the following statements is required for voluntary health and welfare organizations,but not for other not-for-profit organizations?

Accepted Answer

A) Statement of Activities and Changes in Net Assets. 
B) Statement of Functional Expenses. 
C) Statement of Financial Position. 
D) Statement of Cash Flows. 
E) Statement of Budget to Actual. 
A) Statement of Activities and Changes in Net Assets. 
B) Statement of Functional Expenses. 
C) Statement of Financial Position. 
D) Statement of Cash Flows. 
E) Statement of Budget to Actual.

Question 7

In accruing patient charges for the current month,which one of the following accounts should a hospital credit?

Accepted Answer

A) Accounts Payable. 
B) Deferred Revenue. 
C) Unearned Revenue. 
D) Patient Service Revenues. 
E) Accounts Receivable. 
A) Accounts Payable. 
B) Deferred Revenue. 
C) Unearned Revenue. 
D) Patient Service Revenues. 
E) Accounts Receivable.

Question 8

A not-for-profit organization provides the following information for the year:   
Required: Prepare the journal entries for these transactions.

Accepted Answer

The answer of A not-for-profit organization provides the following information...

Question 9

Which of the following types of health care organizations follow FASB statements?

Accepted Answer

A) Entry A. 
B) Entry B. 
C) Entry C. 
D) Entry D. 
E) Entry E. 
A) Entry A. 
B) Entry B. 
C) Entry C. 
D) Entry D. 
E) Entry E.

Question 10

REFERENCE: 18_01
The following gifts are received in Year One by a not-for-profit organization:
I.$2,000 specified by the donor to be used to pay salaries.
II.$10,000 for new conference room furniture.
III.$5,000 to be held for one year before being expended.
The salaries are paid in Year Two and the conference room furniture is purchased in Year One.
-How much should be shown as increases as Temporarily Restricted Net Assets in Year One?

Accepted Answer

A) $2,000 
B) $7,000 
C) $12,000 
D) $15,000 
E) $17,000 
A) $2,000 
B) $7,000 
C) $12,000 
D) $15,000 
E) $17,000

Question 11

What two classifications are used for the expenses incurred by voluntary health and welfare organizations?

Accepted Answer

The two classifications of exp

Question 12

What financial statements would normally be prepared by a voluntary health and welfare organization?

Accepted Answer

A voluntary health and welfare organizat

Question 13

REFERENCE: Ref.18_02
For the month of December 2008,patient charges at Northfield Hospital (a not-for-profit hospital)were $2,720,000.Third-party payors were billed $1,800,000.
-Prepare the necessary journal entry to record the revenue and receivables.

Accepted Answer

The answer of REFERENCE: Ref.18_02
For the month of December 2008,patient...

Question 14

Which one of the following financial statements is not required by SFAS 117 for a voluntary health and welfare organization?

Accepted Answer

A) Statement of Financial Position. 
B) Statement of Functional Expense. 
C) Statement of Activities and Changes in Net Assets. 
D) Statement of Cash Flows. 
E) Statement of Operations. 
A) Statement of Financial Position. 
B) Statement of Functional Expense. 
C) Statement of Activities and Changes in Net Assets. 
D) Statement of Cash Flows. 
E) Statement of Operations.

Question 15

For May 2008,Carlington Hospital's charges for patient services were $608,000,of which 80% was billed to third-party payors.
Required:
Prepare the journal entry to accrue patient charges for the month.

Accepted Answer

SHAPE \* M

Question 16

Wakefield Home is a private not-for-profit healthcare organization offering services for a fee.The home has an endowment and the income may be used to sponsor families that are unable to pay for services but the principal must be preserved.In addition,various fundraising activities take place during the year.
When the Home held its annual Holiday fund raiser,pledges of $50,000 were received.The administration expected 5% to be uncollectible.
In addition,income of $10,000 was received from the endowment to sponsor families.
Prepare the journal entries for these transactions.

Accepted Answer

The answer of Wakefield Home is a private not-for-profit healthcare...

Question 17

Which entry would be the correct entry on the donor's books to record a gift to a not-for-profit organization whenthe donor relinquishes control of the asset?

Accepted Answer

A) debit expense-charitable contribution,credit cash. 
B) debit refundable advance to charity,credit cash. 
C) debit charitable pledge,creditcash. 
D) debit cash,creditliability to beneficiary. 
E) debit cash,credit refundable advance. 
A) debit expense-charitable contribution,credit cash. 
B) debit refundable advance to charity,credit cash. 
C) debit charitable pledge,creditcash. 
D) debit cash,creditliability to beneficiary. 
E) debit cash,credit refundable advance.

Question 18

Which entry would be the correct entry to record that a hospital has provided patient services for $200,000,of which 25% will be billed to a third party?

Accepted Answer

A) debit Accounts Receivable-Patients $200,000,credit Patient Service Revenue $200,000. 
B) debit Accounts Receivable-Patients $150,000,debit Accounts Receivable-Third Party $50,000,credit Patient Service Revenue $200,000. 
C) debit Accounts Receivable-Patients $50,000,debit Accounts Receivable-Third Party $150,000,credit Patient Service Revenue $200,000. 
D) debit Accounts Receivable-Patients $200,000,credit Patient Service Revenue $50,000,credit Patient Service Revenue $150,000. 
E) debit Patient Service Revenue $200,000,credit Accounts Receivable-Patients $150,000,credit Accounts Receivable-Third Party $50,000. 
A) debit Accounts Receivable-Patients $200,000,credit Patient Service Revenue $200,000. 
B) debit Accounts Receivable-Patients $150,000,debit Accounts Receivable-Third Party $50,000,credit Patient Service Revenue $200,000. 
C) debit Accounts Receivable-Patients $50,000,debit Accounts Receivable-Third Party $150,000,credit Patient Service Revenue $200,000. 
D) debit Accounts Receivable-Patients $200,000,credit Patient Service Revenue $50,000,credit Patient Service Revenue $150,000. 
E) debit Patient Service Revenue $200,000,credit Accounts Receivable-Patients $150,000,credit Accounts Receivable-Third Party $50,000.

What are third party payors? Why are their interests important in accounting for health care entities?

Which entry would be the correct entry on the donor's books to record a gift to a not-for-profit organization when control of the assets is retained by the donor?

Which account would be credited in recording a gift of medicine to a nursing home from an outside party?

When are unconditional promises to give recognized as revenues?

Historically,what was the pattern of reporting of not-for-profit organizations? (1)Patterned after for-profit accounting (2)Emphasis on separate fund types (3)Disregard for the entire entity

Which of the following statements is required for voluntary health and welfare organizations,but not for other not-for-profit organizations?

In accruing patient charges for the current month,which one of the following accounts should a hospital credit?

A not-for-profit organization provides the following information for the year: Required: Prepare the journal entries for these transactions.

Which of the following types of health care organizations follow FASB statements?

What two classifications are used for the expenses incurred by voluntary health and welfare organizations?

What financial statements would normally be prepared by a voluntary health and welfare organization?

REFERENCE: Ref.18_02 For the month of December 2008,patient charges at Northfield Hospital (a not-for-profit hospital)were $2,720,000.Third-party payors were billed $1,800,000. -Prepare the necessary journal entry to record the revenue and receivables.

Which one of the following financial statements is not required by SFAS 117 for a voluntary health and welfare organization?

For May 2008,Carlington Hospital's charges for patient services were $608,000,of which 80% was billed to third-party payors. Required: Prepare the journal entry to accrue patient charges for the month.

Which entry would be the correct entry on the donor's books to record a gift to a not-for-profit organization whenthe donor relinquishes control of the asset?

Which entry would be the correct entry to record that a hospital has provided patient services for $200,000,of which 25% will be billed to a third party?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements - Intercompany Asset Transactions

Variable Interest Entities, intercompany Debt, consolidated Statement of Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

Accounting for State and Local Governments,part II

Accounting for Estates and Trusts

Filters

Exam 18: Accounting for Not-For-Profit Organizations

What are third party payors? Why are their interests important in accounting for health care entities?

Which entry would be the correct entry on the donor's books to record a gift to a not-for-profit organization when control of the assets is retained by the donor?

Which account would be credited in recording a gift of medicine to a nursing home from an outside party?

When are unconditional promises to give recognized as revenues?

Historically,what was the pattern of reporting of not-for-profit organizations? (1)Patterned after for-profit accounting (2)Emphasis on separate fund types (3)Disregard for the entire entity

Which of the following statements is required for voluntary health and welfare organizations,but not for other not-for-profit organizations?

In accruing patient charges for the current month,which one of the following accounts should a hospital credit?

A not-for-profit organization provides the following information for the year: Required: Prepare the journal entries for these transactions.

Which of the following types of health care organizations follow FASB statements?

What two classifications are used for the expenses incurred by voluntary health and welfare organizations?

What financial statements would normally be prepared by a voluntary health and welfare organization?

REFERENCE: Ref.18_02 For the month of December 2008,patient charges at Northfield Hospital (a not-for-profit hospital)were $2,720,000.Third-party payors were billed $1,800,000. -Prepare the necessary journal entry to record the revenue and receivables.

Which one of the following financial statements is not required by SFAS 117 for a voluntary health and welfare organization?

For May 2008,Carlington Hospital's charges for patient services were $608,000,of which 80% was billed to third-party payors. Required: Prepare the journal entry to accrue patient charges for the month.

Which entry would be the correct entry on the donor's books to record a gift to a not-for-profit organization whenthe donor relinquishes control of the asset?

Which entry would be the correct entry to record that a hospital has provided patient services for $200,000,of which 25% will be billed to a third party?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements - Intercompany Asset Transactions

Variable Interest Entities, intercompany Debt, consolidated Statement of Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

Accounting for State and Local Governments,part II

Accounting for Estates and Trusts

Filters