Charity Service and Bad Debts in a Government Hospital That

question 59

Multiple Choice

Charity service and bad debts in a government hospital that follows business-type accounting are:

• A) Both reported as deductions from gross patient revenue in arriving at net patient revenue.
• B) Both reported as expenses.
• C) Reported differently, with charity service disclosed in the notes to the financial statements and bad debts reported as a deduction from revenue.
• D) Reported differently, with charity service reported as a deduction from gross patient revenue and bad debts reported as an expense.

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