Daniel,an Auditor,is Performing a Routine Review of a Not-For-Profit Hospital

question 39

Multiple Choice

Daniel,an auditor,is performing a routine review of a not-for-profit hospital and notes the following account balances in the statement of activities for the fiscal year ending September 30,2014: $\begin{array}{ll}\text { Gross patient service rev enue from all }&\$ 4,450,000 \\\text {services at the hosp ital's established }\\\text { billing rate }\\ \text { Bad debts expense}& \$ 90,000 \\ \text { Contractual ad justments}&\$ 420,000 \\\end{array}$
What amount should the hospital report as net patient service revenue in its statement of activities for the fiscal year ending September 30,2014?

• A)$4,080,000
• B)$4,140,000
• C)$4,030,000
• D)$4,410,000

---

Definitions:

Health Administration

The field concerned with the management, leadership, and administration of public health systems, health care systems, hospitals, and hospital networks.

Safety Standards

These are established guidelines and requirements designed to ensure the health, safety, and welfare of individuals in workplaces and public spaces.

Affective Commitment

is an employee's emotional attachment to, identification with, and involvement in an organization, which influences their decision to continue or discontinue employment.

Ethnocentrism

The practice of evaluating a different culture exclusively through the lens of one's own cultural norms and values.