The Transactions Listed in the Following Questions Occurred in a Private

question 61

Multiple Choice

The transactions listed in the following questions occurred in a private, not-for-profit hospital during 20X8. For each transaction, indicate its effect on the hospital's statement of operations for the year ended December 31, 20X8.
Transaction: Received contributions restricted by donors for equipment acquisition.
Effect on Statement of Operations:

• A) Increases operating income.
• B) Decreases operating income.
• C) The transaction is reported on the statement of operations, but there is no effect on operating income.
• D) The transaction is not reported on the statement of operations.

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Definitions:

Vestibule

An entrance or enclosed anteroom between the outer door and the interior parts of a house or building, or the central cavity of the labyrinth of the ear.

Crista Ampullaris

A sensory organ located within the semicircular canals of the inner ear, detecting head movements.

Otoliths

Small calcium carbonate crystals in the inner ear that, along with hair cells, help to detect gravity and linear accelerations, contributing to balance and spatial orientation.

Macula

A specialized region in the center of the retina responsible for sharp, detailed central vision.