Which of the Following Is Not True Regarding Accounting and Financial

question 93

Multiple Choice

Which of the following is not true regarding accounting and financial reporting for private not-for-profit hospitals?

• A) Expenses may be unrestricted or temporarily restricted depending on donor intent.
• B) Fund accounting is not required.
• C) The Statement of Cash Flows may use either the direct or indirect method.
• D) None of the above, all are true.

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Definitions:

Apparent Authority

The perception by a third party that an agent has the authority to act on behalf of a principal, even if such authority has not been explicitly or implicitly granted.

Principal Liable

Refers to the legal responsibility of the principal party in a relationship (such as an employer) for certain actions of their agents or employees under the doctrine of vicarious liability.

Apparent Authority

The impression given to third parties that an agent is authorized to act on behalf of a principal, even if such authority has not been formally granted.

Proper Notification

The act of informing someone through legally accepted or specified means.