Which of the following statements is correct about “charity care” provided by nonprofit hospitals? (“The hospital...
- Which of the following statements is correct about “charity
care” provided by nonprofit hospitals? (“The hospital does not
expect payment for this care)
- Hospitals record both a revenue and a bad debt expense for charity care, at the typical amounts it would have charged for these services
- Hospitals record both a revenue and a program service expense for charity care, at the typical amounts it would have charged for these services
- No revenue and no bad debt expense is recorded for charity care, but there is disclosure of the financial effects of the cost of providing charity care
- No revenue and no bad debt expense is recorded for charity care. There is no disclosure of the financial effects of the cost of providing charity care
Homework Answers
B). Hospital record both a revenue and a program service expense for charity care, at the typical amount it would have charged for these service.
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Which of the following statements is correct about “charity
care” provided by nonprofit hospitals? (“The hospital...
In a nonprofit, nongovernmental hospital, courtesy allowances are charity care services. revenue deductions. expenses. revenues earned...
In a nonprofit, nongovernmental hospital, courtesy allowances are charity care services. revenue deductions. expenses. revenues earned even if the standard charge is above or below the allowance. 3.75 points QUESTION 3 The key focus of government fund accounting concerns the current ability to provide and fund services and goods. capital expenditures. income measurement. intergovernmental transfers from the general fund. 3.75 points QUESTION 4 Voluntary health and welfare organizations are supported by, and provide voluntary services to, the public....
During 2017, the following selected events and transactions were recorded by Milos County Hospital. 1. Gross...
During 2017, the following selected events and transactions
were recorded by Milos County Hospital.
1.
Gross charges for hospital services, all charged to accounts
and notes receivable, were as follows:
Patient service revenues
$1,666,500
2.
The hospital cafeteria and gift shop had cash sales of
$296,100.
3.
Additional information determined subsequently to recording
patient service revenues and relating to the current-year is as
follows:
Contractual adjustments
$
640,000
Provision for bad debts
31,000
Charity care
262,200
4.
A federal cost...
Prepare journal entries to record the following transactions of a nonprofit hospital: 5. Depreciation on the...
Prepare journal entries to record the following transactions of a nonprofit hospital: 5. Depreciation on the equipment was $34,000. 6. Several adults donated their time (worth $5,000) selling merchandise in the hospital gift shop. 7. The hospital billed Medicare $100,000 for services provided at its established rates. The prospective billing arrangement gives Medicare a 40 percent discount from these rates. 8. An unrestricted donation of $4,000 was received. If a transaction does not require a journal entry, select No entry...
Governments and nonprofit entities are similar in many ways. Which of the following statements is not...
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P2-3. Use Community Health Systems operates general acute care hospitals in communities company reports the following...
P2-3. Use Community Health Systems operates general acute care hospitals in communities company reports the following information in Schedule II of its 2015 10-K Additional Information from 10-K to Explain Linkages Among Financial Statemen LO1, 2, 5, 6 Community Heal Systems (CYH) across the United SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS Balance at Acquisitions Beginning and Bad Debt Write- at End of Year Dispositions Expense Offs of Year $ millions December 31, 2015, allowance for doubtful accounts December 31, 2014, allowance...
Background or Scenario: Sisters Charity Hospital (SCH) is located in a diverse and highly-populated area. The...
Background or Scenario: Sisters Charity Hospital (SCH) is located in a diverse and highly-populated area. The patients are disproportionately lower-income, many eligible for state public aid and Medicaid healthcare insurance. In addition to this population, the hospital serves a high number of poor and elderly patients, many of whom are covered under the Medicare program, and some of those who also have Medicaid insurance, being dually eligible for both government health insurance programs. SCH is a tax-exempt, charitable organization formed...
Assume Mercy Hospital uses accrual accounting. Which of the following statements is most correct? a. Supplies...
Assume Mercy Hospital uses accrual accounting. Which of the following statements is most correct? a. Supplies expense is recognized when medical supplies are delivered to the hospital by the vendor. b. Patient service revenue is recognized when payment is received by the hospital from a third-party payer. c. Salaries expense is recognized when payroll checks are written. d. Patient service revenue is recognized when healthcare services are provided. e. Statements a., c., and d. are all correct.
Assume Mercy Hospital uses accrual accounting. Which of the following statements is most correct? O Supplies...
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accounting question 5.4. General Hospital, a not-for-profit acute care facility, has the following cost structure for...
accounting question
5.4. General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services Fixed Costs Variable costs per inpatient day Charge (revenue) per inpatient day $10,000,000 200 1,000 The hospital expects to have a patient load of 15,000 inpatient days next year. a. Construct the hospitals base case projected P&L statement b. What is the hospitals breakeven point? c. What volume is required to provide a profit of $1,000,000? A profit of $500,000? d....
During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following...
During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year). Services provided to inpatients and outpatients amounted to $9,792,000, of which $466,000 was for charity care; $944,000 was paid by uninsured patients; and $8,382,000 was billed to Medicare, Medicaid, and insurance companies. Donated pharmaceuticals and medical supplies valued at $281,000 were received and utilized as general expenses. Medicare, Medicaid, and third-party payors (insurance companies) approved and paid...
During 2017, the following selected events and transactions
were recorded by Milos County Hospital.
1.
Gross charges for hospital services, all charged to accounts
and notes receivable, were as follows:
Patient service revenues
$1,666,500
2.
The hospital cafeteria and gift shop had cash sales of
$296,100.
3.
Additional information determined subsequently to recording
patient service revenues and relating to the current-year is as
follows:
Contractual adjustments
$
640,000
Provision for bad debts
31,000
Charity care
262,200
4.
A federal cost...
Prepare journal entries to record the following transactions of a nonprofit hospital: 5. Depreciation on the equipment was $34,000. 6. Several adults donated their time (worth $5,000) selling merchandise in the hospital gift shop. 7. The hospital billed Medicare $100,000 for services provided at its established rates. The prospective billing arrangement gives Medicare a 40 percent discount from these rates. 8. An unrestricted donation of $4,000 was received. If a transaction does not require a journal entry, select No entry...
Governments and nonprofit entities are similar in many ways. Which of the following statements is not truc? MC1-10. LO 1 a. Neither governments nor nonprofit entities have a profil modve. D. Both govemments and nonprofit entities provide services. C. Both govemments and nonprofit entities assess tases. 4. Boin govemments and nonprofit entities often report restricted resources. MC1-11. Why do govemments and nonprofit entities use fund accounting a. 1o help ensure restricted resources are spent for their intended purpose. 0. To...
P2-3. Use Community Health Systems operates general acute care hospitals in communities company reports the following information in Schedule II of its 2015 10-K Additional Information from 10-K to Explain Linkages Among Financial Statemen LO1, 2, 5, 6 Community Heal Systems (CYH) across the United SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS Balance at Acquisitions Beginning and Bad Debt Write- at End of Year Dispositions Expense Offs of Year $ millions December 31, 2015, allowance for doubtful accounts December 31, 2014, allowance...
Assume Mercy Hospital uses accrual accounting. Which of the following statements is most correct? O Supplies expense is recognized when medical supplies are delivered to the hospital by the vendor. O Patient service revenue is recognized when payment is received by the hospital from a third-party payer. O Salaries expense is recognized when payroll checks are written. 0 Patient service revenue is recognized when healthcare services are provided. O Statements a., c., and d. are all correct.
accounting question
5.4. General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services Fixed Costs Variable costs per inpatient day Charge (revenue) per inpatient day $10,000,000 200 1,000 The hospital expects to have a patient load of 15,000 inpatient days next year. a. Construct the hospitals base case projected P&L statement b. What is the hospitals breakeven point? c. What volume is required to provide a profit of $1,000,000? A profit of $500,000? d....
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