Which of the Following Statements About Services Contributed to a Government

question 27

Multiple Choice

Which of the following statements about services contributed to a government hospital is true?

• A) Government hospitals may report contributed services as operating revenues.
• B) Government hospitals are permitted, but not required, to recognize contributed services regardless of the value of the services.
• C) Government hospitals are required to report contributed services at their fair market value.
• D) Government hospitals are required to report contributed services as gains.

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Definitions:

Disaffirm The Contract

The legal act of a party declaring a contract void and relinquishing all rights and obligations under that contract.

Intoxicated

The condition of being under the influence of alcohol or drugs to the extent that mental and motor skills are impaired.

Market Value

The amount of money a willing buyer would pay a willing seller for goods, services, or assets in a competitive marketplace.

Minor

A person who is under the legal age of adulthood, typically considered to be under 18 years old in many jurisdictions.