The Transactions Listed in the Following Questions Occurred in a Private

question 60

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 cash contribution from donor who stipulated the contribution be permanently invested.
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:

Fiscal Policy Institute

An organization focused on research and education concerning fiscal policies, often analyzing government budgets, taxes, and public spending.

Fact

A piece of information that is objectively verifiable and can be proven to be true.

Job Growth

An increase in the number of jobs available in a certain area or field, often used as an indicator of economic health.

Local Ecosystems

Biological communities in a specific, smaller geographic area and the interactions with their environment.