Which of the Following Is Not True Regarding Financial Reporting

question 75

Multiple Choice

Which of the following is not true regarding financial reporting of health care entities?

• A) It is important to distinguish operating revenues and expenses from nonoperating.
• B) It is important to distinguish between current and noncurrent assets and liabilities.
• C) Private sector organizations use a three-category format for the Statement of Cash Flows, and public sector organizations us a four-category format.
• D) Private sector organizations use accrual accounting, while public sector organizations use modified accrual.

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Definitions:

Percentage

a rate, number, or amount in each hundred, symbolized by the percent sign (%), used to express proportions and relationships between quantities.

Acute Phase

A critical and intense period of a condition or situation, often characterized by a sudden onset and severe symptoms.

Disorganization

Lack of structure or order, resulting in decreased efficiency and coherence.

Humiliation

The feeling of being ashamed or embarrassed, often due to being demeaned or made to feel inferior by others.