59. What is a contractual adjustment? a. An adjusting entry made at year-end to accrue unpaid patient service revenue. b. A reduction of patient service revenue for charity care. c. An allocation of the cost of patient care to the departments that supply the patient care. d. A reduction in patient service revenue because of agreements with third party payors that allow them to pay a health care entity based on the agreed upon determination of reasonable cost.
59. What is a contractual adjustment? a. An adjusting entry made at year-end to accrue unpaid patient service revenue. b. A reduction of patient service revenue for charity care. c. An allocation of the cost of patient care to the departments that supply the patient care. d. A reduction in patient service revenue because of agreements with third party payors that allow them to pay a health care entity based on the agreed upon determination of reasonable cost.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Give the answer of both 59&60 compulsory plzz
Transcribed Image Text:59. What is a contractual adjustment?
a. An adjusting entry made at year-end to accrue
unpaid patient service revenue.
b. A reduction of patient service revenue for charity
care.
c. An allocation of the cost of patient care to the
departments that supply the patient care.
d. A reduction in patient service revenue because of
agreements with third party payors that allow
them to pay a health care entity based on the
agreed upon determination of reasonable cost.
60. Fike Hospital, a private, not-for-profit institution,
receives an unrestricted gift of common stock with a
fair value of $100,000. The donor had paid $40,000
for the stock five years earlier. The gift should be
recorded as an
a. Increase in temporarily restricted net assets of
$100,000.
b. Increase in unrestricted net assets of $100,000.
c. Increase in temporarily restricted net assets of
$40,000.
d. Increase in unrestricted net assets of $40,000.
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