Good Faith Hospital,operated by a Religious Organization,billed Patients $4,000,000 for Services

question 17

Multiple Choice

Good Faith Hospital,operated by a religious organization,billed patients $4,000,000 for services rendered during the year ended June 30,20X9.The hospital realized cash of $3,500,000 from the patient billings because of the following reductions:
(1) contractual adjustments of $140,000 granted to private insurance companies and to the federal government;and
(2) uncollectible accounts receivable of $360,000.
On the statement of operations prepared for the year ended June 30,20X9,Good Faith Hospital should report net patient service revenue of:

• A)$3,500,000.
• B)$3,860,000.
• C)$4,000,000.
• D)$3,640,000.

---

Definitions:

Self-fulfilling Prophecy

A belief or expectation that indirectly or directly causes itself to become true, through the behavior it inspires.

Initiating Structure

Leadership behavior that defines and organizes work roles and activities, and sets clear objectives.

Autocratic Leadership

A leadership style where decisions are made unilaterally by the leader without input from group members, emphasizing control and command.

Buffer Criticism

The practice of softening or reducing the impact of critique, often by providing supportive feedback along with it.