Question :
53.St. David’s a not-for-profit business-oriented hospital. What the journal entry : 1255361
53.St. David’s is a not-for-profit business-oriented hospital. What is the journal entry for the following transaction: Cash was received for pledges made in the prior year in the amount of $85,000. That amount has been recorded as temporarily restricted net assets, based on time restrictions.
A)Cash85,000
Contributions receivable85,000
Reclassification from Temporarily Restricted Net Assets-
Expiration of Time Restrictions85,000
Reclassification to Unrestricted Net Assets – Expiration
of Time restrictions85,000
B)Cash85,000
Contributions receivable85,000
Reclassification to Unrestricted Net Assets – Expiration
of Time Restrictions85,000
Reclassification from Temporarily Restricted Net Assets
– Expiration of Time restrictions85,000
C)Contributions Receivable-Unrestricted85,000
Contributions Receivable – Restricted85,000
Cash85,000
Contributions receivable-Unrestricted85,000
D)Cash85,000
Contribution Revenue – Unrestricted85,000
54.Which of the following is not a required statement of a private not-for-profit hospital?
A)Statement of Financial Position.
B)Statement of Functional Expense.
C)Statement of Cash Flows.
D)Statement of Operations.
55.Which of the following is not true regarding financial reporting of health care entities?
A)It is important to distinguish operating revenues and expenses from nonoperating.
B)It is important to distinguish between current and noncurrent assets and liabilities.
C)Private sector organizations use a three-category format for the Statement of Cash Flows, and public sector organizations us a four-category format.
D)Private sector organizations use accrual accounting, while public sector organizations use modified accrual.
56.Private sector, not-for-profit health care organizations have a category of assets called “Assets Whose Use is Limited.” That category refers to:
A)Assets that have been restricted by donor action.
B)Unrestricted assets that have been limited by individuals or entities other than contributors (such as by bond covenants).
C)Both (a) and (b) above.
D)Neither (a) nor (b) above.
57.The statement reflecting revenues, expenses, and other changes in unrestricted net assets for a private sector, not-for-profit hospital is called the:
A)Statement of Changes in Unrestricted Net Assets.
B)Statement of Operations.
C)Statement of Activities.
D)Income Statement.
58.Which of the following is true regarding the financial statements of a private sector not-for-profit hospital?
A)Revenues are measured using the accrual basis of accounting.
B)Changes in net assets must be shown by net asset classification.
C)The Statement of Cash Flows uses a three-category format.
D)All of the above are true.
59.Which of the following is true regarding revenue recognition for health care organizations?
A)Patient service revenue is reported net of contractual adjustments.
B)Patient service revenue includes an imputed charge for charity care.
C)Both (a) and (b) above.
D)Neither (a) nor (b) above.
60.A private sector not-for-profit hospital received a gift of $250,000 cash on the first day of 2014 with a donor restriction that the resources be used to purchase certain equipment. The equipment was purchased on the same day and is expected to last five years with no salvage value. The Statement of Financial Position as of December 31, 2014 would reflect as net assets of:
A)$200,000 unrestricted and $0 temporarily restricted.
B)$0 unrestricted and $200,000 temporarily restricted.
C)Either (a) or (b), depending on the policy of the hospital.
D)None of the above.
61.A private sector, not-for-profit hospital received a pledge of $100,000 in 2013, with no purpose restriction. The pledge card indicated that the funds were to be used in 2014. Cash was turned over to the hospital in 2014. The not-for-profit hospital would recognize contribution revenue in:
A)2013.
B)2014.
C)When the funds are expended.
D)Either 2013 or 2014, depending on the policy of the hospital.
62.A private sector, not-for-profit hospital received a pledge of $150,000 in 2013 to be used for a building to be constructed in 2014 but contingent on the hospital being able to raise an equivalent amount from other donors. As of the end of 2013, half the amount had been raised from other donors. In 2014, the hospital raised the amount from other donors. The donor gave the $150,000 to the hospital in 2014 and the building was completed in 2014. In which year should the hospital recognize the $150,000 from the pledge?
A)2013.
B)2014.
C)2015.
D)$75,000 should be recognized in 2013 and $75,000 in 2014.
