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.

---

Definitions:

Economic Activity

Every activity related to creating, distributing, and using products and services within an economic system.

Adam Smith

An 18th-century Scottish economist and philosopher, widely considered the father of modern economics, best known for his works on the principles of free market and the "invisible hand" concept.

Own Interests

Actions or decisions driven by personal benefits or gains, often discussed in the context of economic behavior or political decision-making.

Public Interest

The well-being and general benefit of the community or society at large, often guiding government policy and legal decisions.