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:

Marginal Benefit

The incremental benefit or enjoyment a consumer receives by using one more unit of a good or service.

Economic Payoff

The financial return or reward received from an investment or decision, measured in terms of profit or loss.

Equity

Fairness; everyone gets his or her fair share. Since people can disagree about what is “fair,” equity is not as well defined a concept as efficiency.

Rational Decision

The choice made by logically considering all available information, potential costs, and benefits to achieve the optimal outcome.