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:

Bargaining

A process of discussion aimed at reaching an agreement between parties with differing interests.

Interchangeable

Items or elements that can be substituted for one another without affecting functionality or value.

Intragroup Conflict

Disagreements or disputes that occur within a single group, team, or organization.

Sources of Conflict

Factors or circumstances that can lead to disagreements or disputes between individuals or groups, including differences in values, needs, desires, or perceptions.