An Accountant Has Encountered a Perplexing Financial Reporting Issue Related

question 26

Multiple Choice

An accountant has encountered a perplexing financial reporting issue related to the hospital for which she is preparing financial statements.The issue is not specifically addressed by FASB statements.To which of the following sources would the accountant probably look for industry-specific guidance?

• A)GASB Statements.
• B)AICPA accounting and auditing guide, Not-for-Profit Organizations.
• C)AICPA accounting and auditing guide, Health Care Organizations.
• D)Pronouncements of the HFMA or AHA.

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Definitions:

General Partner

A full partner with unlimited liability for the debts of the partnership.

Limited Partnership

A partnership consisting of at least one general partner, who manages the business and is personally liable for debts, and one or more limited partners, who invest but do not participate in management.

Partnership Interest

The share or portion of a partnership owned by one of the partners, including rights to its profits.

Capacity at Law

The ability of an entity or individual to enter into legally binding contracts and to sue or be sued.