A Hospital Originally Recorded All Patient Services It Provided as a $500,000

question 39

Multiple Choice

A hospital originally recorded all patient services it provided as a $500,000 debit to accounts receivable. Upon review the hospital determined that a contractual adjustment of $200,000 needs to be made, and estimated bad debts of $5,000 need to be recorded. In addition, at the time the receivable was recorded the hospital did not realize $100,000 should be considered charity services. Based on the information provided, what is the net amount of accounts receivable that the hospital would report on its financial statements?

• A) $495,000.
• B) $300,000.
• C) $200,000.
• D) $195,000.

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Definitions:

Referent Power

A form of power that stems from being admired and respected, often used to influence others through appeal and attraction.

Machiavellianism

A personality trait characterized by a manipulative, deceitful, and exploitative approach to interpersonal relationships and the pursuit of personal goals.

Networking

The practice of building, maintaining, and utilizing contacts and connections in professional or social spheres to gain information, resources, or support.

Non-substitutability

The quality of being irreplaceable or not easily replaced due to unique attributes or circumstances.