EBK ADVANCED FINANCIAL ACCOUNTING
12th Edition
ISBN: 9781260165104
Author: Christensen
Publisher: YUZU
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Chapter 19, Problem 19.24.1P
To determine
Introduction:FASB stands for Financial Accounting Standards Board is a private, not for profit organization whose basic objective is to develop and promote generally accepted accounting principles in the United States of America. It is an independent organization that sets accounting standards for companies and firms within US.
To choose:Whether the given statement is true or false
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The following questions concern the appropriate accounting for a private not-for-profit health care entity. Write complete answers for each question.
What is a third-party payor, and how have third-party payors affected the development of accounting principles for health care entities?
What is a contractual adjustment, and how does a health care entity record this figure?
How does a not-for-profit health care entity account for donated materials and services?
How does a not-for-profit health care entity account for donated materials and services?
The FASB requires that not-for-profits show the relationship of functional expenses to natural classifications of expense in what format?
Multiple Choice
A separate statement of functional expenses.
Any of these formats is acceptable.
As part of the statement of activities.
As a schedule in the notes to the financial statements.
In preparing GAAP-based financial reports, nonprofit organizations must present
their expenses by both natural classification and function. Which of the following
is/are acceptable approaches?
Within the notes to the financial statements
As a separate statement/schedule
Within the statement of activities
Within the statement of financial position
Chapter 19 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
Ch. 19 - Prob. 19.1QCh. 19 - Prob. 19.2QCh. 19 - Prob. 19.3QCh. 19 - Prob. 19.4QCh. 19 - Prob. 19.5QCh. 19 - Prob. 19.6QCh. 19 - Prob. 19.7QCh. 19 - Prob. 19.8QCh. 19 - Prob. 19.9QCh. 19 - Prob. 19.10Q
Ch. 19 - Prob. 19.11QCh. 19 - Prob. 19.12QCh. 19 - Prob. 19.13QCh. 19 - Prob. 19.14QCh. 19 - Prob. 19.15QCh. 19 - Prob. 19.16QCh. 19 - Prob. 19.17QCh. 19 - Prob. 19.18QCh. 19 - Should a rotary club, an ONPO, report depreciation...Ch. 19 - Prob. 19.20QCh. 19 - Prob. 19.1CCh. 19 - Prob. 19.2CCh. 19 - Prob. 19.3CCh. 19 - Prob. 19.4CCh. 19 - Prob. 19.5CCh. 19 - Prob. 19.7CCh. 19 - Prob. 19.1.1ECh. 19 - Prob. 19.1.2ECh. 19 - Prob. 19.1.3ECh. 19 - Prob. 19.1.4ECh. 19 - Prob. 19.1.5ECh. 19 - Prob. 19.1.6ECh. 19 - Prob. 19.2.1ECh. 19 - Prob. 19.2.2ECh. 19 - Prob. 19.2.3ECh. 19 - Prob. 19.2.4ECh. 19 - Prob. 19.2.5ECh. 19 - Prob. 19.2.6ECh. 19 - Prob. 19.2.7ECh. 19 - Prob. 19.2.8ECh. 19 - Prob. 19.2.9ECh. 19 - Prob. 19.2.10ECh. 19 - Prob. 19.2.11ECh. 19 - Prob. 19.2.12ECh. 19 - Prob. 19.3ECh. 19 - Prob. 19.4ECh. 19 - Prob. 19.5.1ECh. 19 - Prob. 19.5.2ECh. 19 - Prob. 19.5.3ECh. 19 - Prob. 19.5.4ECh. 19 - Prob. 19.5.5ECh. 19 - Prob. 19.5.6ECh. 19 - Prob. 19.5.7ECh. 19 - Prob. 19.5.8ECh. 19 - Prob. 19.5.9ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8.1ECh. 19 - Prob. 19.8.2ECh. 19 - Prob. 19.8.3ECh. 19 - Prob. 19.8.4ECh. 19 - Prob. 19.8.5ECh. 19 - Prob. 19.8.6ECh. 19 - Prob. 19.8.7ECh. 19 - Prob. 19.8.8ECh. 19 - Prob. 19.8.9ECh. 19 - Prob. 19.8.10ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10PCh. 19 - Prob. 19.11PCh. 19 - Prob. 19.12PCh. 19 - Prob. 19.13PCh. 19 - Prob. 19.14PCh. 19 - Prob. 19.15PCh. 19 - Prob. 19.16PCh. 19 - Prob. 19.17PCh. 19 - Prob. 19.18PCh. 19 - Prob. 19.19PCh. 19 - Prob. 19.20PCh. 19 - Prob. 19.21PCh. 19 - Prob. 19.22PCh. 19 - Prob. 19.23PCh. 19 - Prob. 19.24.1PCh. 19 - Prob. 19.24.2PCh. 19 - Prob. 19.24.3PCh. 19 - Prob. 19.24.4PCh. 19 - Prob. 19.24.5PCh. 19 - Prob. 19.24.6PCh. 19 - Prob. 19.24.7PCh. 19 - Prob. 19.24.8PCh. 19 - Prob. 19.24.9PCh. 19 - Prob. 19.24.10PCh. 19 - Prob. 19.24.11PCh. 19 - Prob. 19.24.12PCh. 19 - Prob. 19.24.13PCh. 19 - Prob. 19.24.14PCh. 19 - Prob. 19.24.15PCh. 19 - Prob. 19.24.16PCh. 19 - Prob. 19.24.17PCh. 19 - Prob. 19.24.18PCh. 19 - Prob. 19.24.19PCh. 19 - Prob. 19.24.20PCh. 19 - Prob. 19.25PCh. 19 - Prob. 19.26P
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Similar questions
- Select from the option list provided the most likely classification(s) of net assets, if any, that are affected by each transaction of a not-for-profit entity. The entity reports the minimum required classes of net assets. Each choice may be used once, more than once, or not at all. Transaction Answer 1. Legally restricted gains. 2. Expenses reported by functional classification. 3. Contributions of services that do not create or enhance nonfinancial assets or require special skills. 4. Costs of collection items not capitalized by the NFP. 5. Board-designated endowment. 6. Expenses reported by natural classification. 7. Conditional promise to give if the barrier has not been overcome. 8. Unconditional promises to give cash with amounts due in future periods. 9. Receipt of a gift restricted to acquisition of a long-lived asset that has been placed in service. The entity chooses to imply a time restriction over the life of the asset. 10. Investment return on a donor-restrictedarrow_forwardWhich of the following accounting rules apply to all not-for-profit organizations? (Select all that apply.) The financial statements must include a statement of functional expenses The balance sheet must segregate assets according to restrictions on their use. The balance sheet must segregate current assets from long-term assets. The balance sheet must show reserves for likely amount of bad debts. Equipment must be reported net of accumulated depreciation. The activity statement must report expenses as decreases in net assets with donor restrictions. The activity statement must segregate revenues according to restrictions on their use.arrow_forwardQuestion: Describe the accounting treatment by hospitals and health care organizations for each of the following: (A) Charity Care (B) Bad Debts (C) Contractual Adjustmentsarrow_forward
- The amount of ‘College fees received from students’ by a Non-profit organization is shown in which of the following?Select one:a. Expenditure accountb. Income accountc. Liability accountd. Assets accountarrow_forwardDescribe the accounting treatmentarrow_forwardExplain the following accounting terms in relation to healthcare providers:a. What is the difference between Gross Revenue and Net Revenue? (Hint: Think about discounts and charity care)b. What is the difference between Charity Care and Bad Debt Losses? How is each handled on the income statement?arrow_forward
- 61. Which of the following types of health care or- ganizations follow FASB statements? TIT Investor-Owned Health Care Private Governmental Нealth Enterprises Yes Not-for-Profit Organizations Organizations Yes No Yes a. b. Yes Yes с. No No Yes d. Yes No Yes 62. Which of the following types of health care or- ganizations recognize depreciation expense? Investor-Owned Health Care Governmental Health Care Not-for-Profit Organizations Yes Enterprises Yes Yes No Organizations No Yes Yes а. No No с. d. Yes Yes Yes 63. In accruing patient charges for the current month, which one of the following accounts should a hospi- tal credit? a. Accounts Payable b. Patient Service Revenues c. Unearned Revenue d. Deferred Revenue 64. According to the AICPA Audit Guide, hospitals should prepare which of the following financial statements? Statement of Changes In Net Assets Yes Statement of Operations No а. b. Yes Yes Yes No No с. d. Noarrow_forwardContributed services in not-for-profit organizations are only recorded in certain circumstances. Locate the citation in the FASB ASC that defines when donated services are recognized.arrow_forwardInventory donated for use in a hospital should be reported asa. other operating revenues.b. nonoperating revenues.c. an addition to the unrestricted net assets.d. an addition to the restricted net assets.arrow_forward
- which of the following is operational income : other revenues, investment income , patient service revenue charitable contribution, premium revenuesarrow_forwardThe practice of for-profit hospitals transferring charity patients to not-for-profit hospitals is known as? A. Dumping B. Cost plus accounting C. Diagnosis related groups D. Cost shiftingarrow_forwardWhich of the following constitutes "unrelated activity"? Interest income on loans to members by a credit cooperative Miscellaneous fees collected from students by a school entity School canteen income generated by the school Rental income derived by a non-profit entity from its properties None of the abovearrow_forward
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