The Standard Charges for All Services Provided by a Government

question 6

Multiple Choice

The standard charges for all services provided by a government hospital during the year were $5,000,000. The charges included charges for charity services valued at $100,000. They were reduced by contractual adjustments related to insurance contracts of $400,000. Uncollectible amounts related to these services are estimated at $150,000. The hospital must report net patient services revenues and expenses, respectively, of

• A) $4,900,000 and $550,000
• B) $4,500,000 and $150,000
• C) $4,750,000 and $400,000
• D) $4,350,000 and $0

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