Healing Angel Hospital,operated by a Religious Organization,billed Patients $13,000,000 for Services

question 82

Multiple Choice

Healing Angel Hospital,operated by a religious organization,billed patients $13,000,000 for services rendered during the year ended June 30,20X3.The hospital realized cash of $10,700,000 from the patient billings because of the following reductions:
(1) contractual adjustments of $1,400,000 granted to private insurance companies and to the federal government;and
(2) uncollectible accounts receivable of $900,000.
On the statement of operations prepared for the year ended June 30,20X3,Healing Angel Hospital should report net patient service revenue of:

• A)$13,000,000.
• B)$12,100,000.
• C)$11,600,000.
• D)$10,700,000.

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Definitions:

Demand Determined

implies that the quantity and price of goods and services are decided by the consumers' demand or preferences in the market.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Elastic

A characteristic of goods or services with demand that is significantly responsive to changes in price.

Value Of Land

The worth of a piece of land determined by its characteristics, location, and potential uses.