Which of the Following Would Usually Be Considered as Net

question 17

Multiple Choice

Which of the following would usually be considered as net assets with donor restrictions in a nongovernmental not-for-profit hospital?

• A) Funds designated by the board of directors for future equipment purchases.
• B) Donated services by senior citizens.
• C) A permanent endowment received from the city's leading citizen.
• D) Sales from the hospital gift shop.

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Definitions:

Cost

The value of the expenses incurred in the production or acquisition of a good or service, including materials, labor, and overheads.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income or loss.

Net Income

The concluding profit margin of a company after deducting all operational expenditures and taxes from its income.

Revenues

Income that a company receives from its normal business activities, usually from the sale of goods and services to customers.