stion completion Status."A not-for-profit hospital signs a contract with an insurance company in which the company agrees to pay the hospital $9 million in capitation feesfor the year July 1, 2017, through June 30, 2018. Between July 1, 2017 and December 31, 2017, the hospital provides services that, at its standardrates, would bill at $5.1 million. Between January 1, 2017, and June 30, 2018, it provides services that it would bill at $4.2 million. For the yearending December 31, 2017, the hospital should recognize capitation revenue of"O $0O $4.5 millionO $5.1 millionO $9 millionQUESTION 65"During a particular year, a not-for-profit hospital provides services that at standard rates would be billed at $400 million. This amount includes $20million of charity care. Of the remaining $380 million, the hospital estimates that $240 million will be billed to third-party providers which, percontractual agreements, will pay only 75 percent of the standard rate (i.e., $180 million). Of the $140 million to be billed to individuals, the hospitalestimates that $80 million will have to be written off as bad debts. The hospital should recognized net patient care revenue of"O $240 millionO $320 millionO $380 millionO $400 millionQUESTION 66Variance power refers to the abilityO "Of a not-for-profit organization to use property for commercial purposes, even though it was zoned for residential purposes."O of a not-for-profit organization to alter the terms of any purpose restrictions associated with a contribution that it has received.O Of a donor to change the beneficiary of a gift from the beneficiary initially specified.O of a charitable organization to unilaterally decide to direct the use of donated assets to a beneficiary other than that specified by the donor. piction"What amount should the hospital report as net patient service revenue in its statement of activities for the fiscal year ending September 30,2017?"O "$4,080,000 "O "$4,140,000 "O "$4,030,000 "O "$4.410.000"QUESTION 62"Based upon St. Thomas Hospital s established billing rate structure, the hospital would have earned patient service revenue of $5,100,000 for theyear. However, the hospital does not expect to collect this amount because of charity care provided in the amount of $600,000 and contractualallowances to third-party payers of $450,000. How much should the hospital record as patient service revenue for the year?"O "$5,100,000"O "$4,650,000"O "$4,500,000"O "$4.050.000"QUESTION 63"The LRF Healthcare Foundation donated 1,800,000 as a permanent endowment to a senior citizen health and welfare organization during theyear. The foundation stipulated that the income and investment appreciation be used to maintain its preventive care center for the elderly. Theendowment principal had an investment appreciation of $120,000 and investment income of $160,000. The organization spent $140,000 tomaintain its preventive care center during the year. What is the amount of change in temporarily restricted net assets that the organization shouldreport?"O "$140,000"O "$160,000"O "$280,000 "O "$1,940,000"

Capital expenditure:It refers to the amount spent on acquiring, maintaining, and improving the fixed…

"A not-for-profit hospital signs a contract with an insurance company in which the company agrees to pay the hospital $9 million in capitation fees for the year July 1, 2017, through June 30, 2018. Between July 1, 2017 and December 31, 2017, the hospital provides services that, at its standard rates, would bill at $5.1 million. Between January 1, 2017, and June 30, 2018, it provides services that it would bill at $4.2 million. For the year ending December 31, 2017, the hospital should recognize capitation revenue of" $0 $4.5 million $5.1 million $9 million

"A not-for-profit hospital signs a contract with an insurance company in which the company agrees to pay the hospital $9 million in capitation fees for the year July 1, 2017, through June 30, 2018. Between July 1, 2017 and December 31, 2017, the hospital provides services that, at its standard rates, would bill at $5.1 million. Between January 1, 2017, and June 30, 2018, it provides services that it would bill at $4.2 million. For the year ending December 31, 2017, the hospital should recognize capitation revenue of" $0 $4.5 million $5.1 million $9 million

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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