The Governing Board of a Hospital Operated by a Religious

question 26

Multiple Choice

The governing board of a hospital operated by a religious organization designated $3,000,000 of cash to be used for plant expansion.The cash was invested in stocks and bonds which earned $250,000 of dividend and interest income.The income from investments should be reported on the hospital's statement of operations as an increase in:

• A) temporarily restricted net assets.
• B) operating income.
• C) either temporarily restricted net assets or unrestricted net assets, depending upon the nature of the governing board's restrictions.
• D) fund balance in the general fund.

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Definitions:

Information

Data, facts, or details that are provided or learned about something or someone.

Legitimate Authority

Power that is recognized and accepted by others as rightful and proper within a social or organizational structure.

Polite Requests

Expressions used to make solicitations in a courteous and respectful manner.

Demands

Requirements or needs that must be met, often used in the context of work, products, or services.