Which of the Following Is Not True Regarding Financial Reporting

question 17

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 use a four-category format.
• D) Private sector organizations use accrual accounting, while public sector organizations use modified accrual.

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Definitions:

Choledochotomy

a surgical incision into the common bile duct, typically to remove gallstones.

Gastrectomy

A surgical procedure for the partial or total removal of the stomach.

Glossectomy

A surgical procedure involving partial or total removal of the tongue, usually to treat cancer.

Duodenum

The first section of the small intestine, immediately beyond the stomach, which plays a critical role in digestion by receiving bile and pancreatic juices.