Question 1

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

Accepted Answer

A)  Fiduciary, Proprietary, and General. 
B)  Nonspendable, Committed, Restricted and Assigned. 
C)  Permanently Restricted, Temporarily Restricted, and Unrestricted. 
D)  Net Investment in Capital Assets, Restricted, and Unrestricted Net Position. 
A)  Fiduciary, Proprietary, and General. 
B)  Nonspendable, Committed, Restricted and Assigned. 
C)  Permanently Restricted, Temporarily Restricted, and Unrestricted. 
D)  Net Investment in Capital Assets, Restricted, and Unrestricted Net Position.

Question 2

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

Accepted Answer

A)  Income Statement. 
B)  Statement of Changes in Unrestricted Net Assets. 
C)  Statement of Operations. 
D)  Statement of Activities. 
A)  Income Statement. 
B)  Statement of Changes in Unrestricted Net Assets. 
C)  Statement of Operations. 
D)  Statement of Activities.

Question 3

Which of the following is accurate with respect to accounting for an investor-owned, for-profit hospital?

Accepted Answer

A)  The hospital would be subject to the FASB category A GAAP and the AICPA Health Care Guide category B GAAP. 
B)  The hospital would use accrual accounting in the same manner as a commercial business with the exception of the recording of donations which would be recorded using the modified accrual method. 
C)  The hospital would be subject to the AICPA Health Care Guide and FASB pronouncements for not-for-profits, such as Statements 116 and 117. 
D)  The hospital must the direct method of presenting operating cash flows. 
A)  The hospital would be subject to the FASB category A GAAP and the AICPA Health Care Guide category B GAAP. 
B)  The hospital would use accrual accounting in the same manner as a commercial business with the exception of the recording of donations which would be recorded using the modified accrual method. 
C)  The hospital would be subject to the AICPA Health Care Guide and FASB pronouncements for not-for-profits, such as Statements 116 and 117. 
D)  The hospital must the direct method of presenting operating cash flows.

Question 4

With respect to health care organizations, expenses must be reported using their natural classifications.

Accepted Answer

A) True 
 B)False

Question 5

With respect to governmental health care entities, the Statement of Cash Flows will have three categories.

Accepted Answer

A) True 
 B)False

Question 6

Government-owned health care organizations do not report depreciation expense.

Accepted Answer

A) True 
 B)False

Question 7

Government hospitals are typically considered engaged in business-type activities.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  GASB. 
B)  FASB. 
C)  SEC. 
D)  All of the above. 
A)  GASB. 
B)  FASB. 
C)  SEC. 
D)  All of the above.

Question 10

Government owned hospitals follow FASB Statements 116 and 117 for not-for-profit organizations.

Accepted Answer

A) True 
 B)False

Question 11

If a clinic raises a significant amount or nearly all their resources from voluntary contributions or grants, they are subject to the guidance in the AICPA:

Accepted Answer

A)  Not-for-Profit Guide. 
B)  Health Care Guide. 
C)  Voluntary Health and Welfare Guide. 
D)  Contributions and Grants Guide. 
A)  Not-for-Profit Guide. 
B)  Health Care Guide. 
C)  Voluntary Health and Welfare Guide. 
D)  Contributions and Grants Guide.

Question 12

Both commercial and not-for-profit hospitals in the private sector follow FASB standards.

Accepted Answer

A) True 
 B)False

Question 13

Differences between actual and estimated contractual adjustments are treated as changes in accounting estimates.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Both commercial and private sector not-for-profit hospitals and health care providers follow FASB Statements 116 and 117.

Accepted Answer

A) True 
 B)False

Question 16

Assume you are reviewing the financial statements of a not-for-profit hospital. Where would you find the account "Assets whose use is limited" and how is it used?

Accepted Answer

"Assets whose use is limited" is an acco

Question 17

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 $ 4,000 higher than the estimate. How should the difference be reported?

Accepted Answer

A)  The hospital should record a current period expense for the $4,000. 
B)  The hospital should record a "cumulative effect of a change in accounting principle" for the $4,000. 
C)  The hospital should reduce current period net patient service revenues for the $4,000. 
D)  The hospital should make a prior period adjustment to retained earnings for $4,000. 
A)  The hospital should record a current period expense for the $4,000. 
B)  The hospital should record a "cumulative effect of a change in accounting principle" for the $4,000. 
C)  The hospital should reduce current period net patient service revenues for the $4,000. 
D)  The hospital should make a prior period adjustment to retained earnings for $4,000.

Question 18

The cash flow statements of private health care organizations, both not-for-profit and for-profit, may use only the indirect method.

Accepted Answer

A) True 
 B)False

Question 19

If an investor-owned hospital receives donations whose use is restricted, the cash must be reported as a restricted item on the balance sheet in the equity section.

Accepted Answer

A) True 
 B)False

Question 20

All health care organizations must follow the Health Care Guide

Accepted Answer

A) True 
 B)False

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

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

Which of the following is accurate with respect to accounting for an investor-owned, for-profit hospital?

With respect to health care organizations, expenses must be reported using their natural classifications.

With respect to governmental health care entities, the Statement of Cash Flows will have three categories.

Government-owned health care organizations do not report depreciation expense.

Government hospitals are typically considered engaged in business-type activities.

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

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

Government owned hospitals follow FASB Statements 116 and 117 for not-for-profit organizations.

If a clinic raises a significant amount or nearly all their resources from voluntary contributions or grants, they are subject to the guidance in the AICPA:

Both commercial and not-for-profit hospitals in the private sector follow FASB standards.

Differences between actual and estimated contractual adjustments are treated as changes in accounting estimates.

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.

Both commercial and private sector not-for-profit hospitals and health care providers follow FASB Statements 116 and 117.

Assume you are reviewing the financial statements of a not-for-profit hospital. Where would you find the account "Assets whose use is limited" and how is it used?

The cash flow statements of private health care organizations, both not-for-profit and for-profit, may use only the indirect method.

If an investor-owned hospital receives donations whose use is restricted, the cash must be reported as a restricted item on the balance sheet in the equity section.

All health care organizations must follow the Health Care Guide

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 Funds, Interfund Transactions

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

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Exam 12: Accounting for Hospitals and Other Health Care Providers

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

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

Which of the following is accurate with respect to accounting for an investor-owned, for-profit hospital?

With respect to health care organizations, expenses must be reported using their natural classifications.

With respect to governmental health care entities, the Statement of Cash Flows will have three categories.

Government-owned health care organizations do not report depreciation expense.

Government hospitals are typically considered engaged in business-type activities.

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

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

Government owned hospitals follow FASB Statements 116 and 117 for not-for-profit organizations.

If a clinic raises a significant amount or nearly all their resources from voluntary contributions or grants, they are subject to the guidance in the AICPA:

Both commercial and not-for-profit hospitals in the private sector follow FASB standards.

Differences between actual and estimated contractual adjustments are treated as changes in accounting estimates.

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.

Both commercial and private sector not-for-profit hospitals and health care providers follow FASB Statements 116 and 117.

Assume you are reviewing the financial statements of a not-for-profit hospital. Where would you find the account "Assets whose use is limited" and how is it used?

The cash flow statements of private health care organizations, both not-for-profit and for-profit, may use only the indirect method.

If an investor-owned hospital receives donations whose use is restricted, the cash must be reported as a restricted item on the balance sheet in the equity section.

All health care organizations must follow the Health Care Guide

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 Funds, Interfund Transactions

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