A Not-For-Profit Hospital Uses Three Revenue-Controlling Accounts: Patient Service Revenue

question 19

Essay

A not-for-profit hospital uses three revenue-controlling accounts: Patient Service Revenue, Other Operating Revenue, and Nonoperating Revenue.
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Required:
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Indicate which of the three revenue accounts would be credited to record the following transactions, or None if none of the accounts is appropriate.
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Definitions:

Retention Ratio

The retention ratio is a financial metric indicating the percentage of a company's earnings that are not paid out as dividends but are reinvested back into the business.

Profit Margin

A financial metric that measures the percentage of revenue remaining after deducting all expenses, indicating the efficiency and profitability of a company's operations.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing debt or equity financing.

Debt Ratio

A financial ratio that measures the extent of a company's or individual's leverage, calculated by dividing total liabilities by total assets.