Donated Medicines That Normally Would Be Purchased by a Hospital

question 27

Multiple Choice

Donated medicines that normally would be purchased by a hospital should be recorded at fair market value and should be credited to

• A) Net Patient Service Revenue.
• B) Other Revenue.
• C) Nonoperating Gains.
• D) Deferred Revenues.

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Definitions:

Easement

A non-possessory right to use or enter onto another's property for a specified purpose.

Trade Fixture

Items of personal property that a tenant attaches to leased commercial real estate for business purposes, which can be removed at the end of the lease term.

Personal Property

Everything that can be owned other than real estate.

Fixture

An item of property that is attached to a structure or land in such a way that removing it would damage the property or deplete its value.