Question : 43.Private not-for-profit health care organizations follow standards set by: A) GASB. B) : 1255360

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

A) GASB.

B) FASB.

C) SEC.

D) All of the above.

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

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.

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

A) Private not-for-profit health care organizations.

B) Governmentally owned health care organizations.

C) Investor-owned health care organizations.

D) All of the above.

46.The AICPA Audit and Accounting Guide: Health Care Organizations provides reporting requirements for all of the following organizations except:

A)The University of Virginia Hospital, a government-owned hospital.

B)a psychiatrist operating as a limited liability corporation.

C)a nursing home operated by the Lutheran Church.

D)voluntary health and welfare organizations

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

A)Private sector, not-for-profit hospitals.

B)Public sector, government-owned hospitals.

C)Both (a) and (b) above.

D)Neither (a) nor (b) above.

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

A)Fiduciary, Proprietary, and General.

B)Nonspendable, Committed, Restricted and Assigned.

C)Permanently Restricted, Temporarily Restricted, and Unrestricted.

D)Net Assets Invested in Capital Assets Net of Related Debt, Restricted, and Unrestricted.

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

A)Fiduciary, Proprietary, and General.

B)Nonspendable, Committed, Restricted and Assigned.

C)Permanently Restricted, Temporarily Restricted, and Unrestricted.

D)Invested in Capital Assets Net of Related Debt, Restricted, and Unrestricted.

50.Which of the following is not correct with respect to reporting of patient service revenue for health care organizations?

A)Patient service revenue must be reported net of estimated adjustments for contractual adjustments

B)Changes to estimates of contractual adjustments related to prior periods must be reported as a prior period adjustment if material

C)Patient service revenue does not include amounts representing charity care

D)Unrestricted bequests and investment income for current unrestricted purposes may be reported as either operating or nonoperatiang revenue, depending on the policy of the entity

51.Which of the following is correct with respect to the recording of charity care for health care organizations?

A)Revenues are not recorded for the value of charity care services provided, but related expenses are included with other expenses on the Statement of Operations

B)Charity care is recorded as revenue and an adjustment is recorded for the difference between the value of the revenue and expenses incurred in providing health care services.

C)The value of foregone charity care revenue is deducted as a charitable contribution expense in the Statement of Operations

D)Management’s policy for providing charity care and the level of charity care provided is an optional disclosure

52.St. David’s is a not-for-profit business-oriented hospital.   What is the journal entry for the following transaction:  During the month, gross patient service revenue amounted to $92,656 of which $81,650 was received in cash.  Contractual adjustments to third-party payers amounted to $10,000.

A)Cash81,650

Patient Accounts Receivable11,006

Operating Revenues – Unrestricted – Patient Service Revenue92,656

Contractual Adjustments – Unrestricted10,000

Patient Accounts receivable10,000

B)Cash81,650

Patient Accounts Receivable11,006

Operating Revenues – Patient Service Revenue, Restricted92,656

Bad Debts Expense – Restricted10,000

Patient Accounts receivable10,000

C)Cash81,650

Patient Accounts Receivable11,006

Operating Revenues – Unrestricted – Patient Service Revenue92,656

Operating Revenues-Unrestricted patient Service Revenue10,000

Patient Accounts receivable10,000

D)Cash81,650

Patient Accounts Receivable  1,006

Operating Revenues – Unrestricted – Patient Service Revenue82,656