Which of the Following Statements Is True Regarding Hospitals

question 48

Multiple Choice

Which of the following statements is true regarding hospitals?

• A)Hospital accounting and financial reporting is identical to that used by for-profit businesses.
• B)Hospitals use modified accrual accounting.
• C)Hospitals record revenues based upon full charges and report contractual adjustments as a deduction from revenues.
• D)Hospitals report charity care in the same manner as contractual adjustments.

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Definitions:

Assumptions

Beliefs or ideas taken for granted without proof, often serving as a basis for further reasoning or arguments.

Phenomena

Observable events or occurrences that can be investigated scientifically.

Theory

A set of principles on which the practice of an activity is based or an explanation of the principles of phenomena.

Confirmation Bias

A cognitive bias that involves favoring information that confirms previously existing beliefs or biases.