Which of the Following Is Not Correct with Respect to Reporting

question 78

Multiple Choice

Which of the following is not correct with respect to reporting of patient service revenue for health care organizations?

• A) Patient service revenue must be reported net of estimated adjustments for contractual adjustments
• B) Contractual adjustments must be reported as a prior period adjustment if material
• C) Patient service revenue does not include charity care
• D) Unrestricted bequests and investment income for current unrestricted purposes may be reported as either operating or nonoperatiang revenue, depending on the policy of the entity

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Definitions:

Input

Resources used in the production process, including labor, materials, and capital, to produce goods or services.

Technical Rate

The rate at which technological improvement increases production efficiency, often measured as a percentage increase in output per unit of input.

Variable Factors

inputs in production that can be adjusted in the short term, such as labor and raw materials, contrasted with fixed factors like machinery.

Production Function

An equation or graph showing how output changes with variations in input factors, holding all else constant.