The Transactions Listed in the Following Questions Occurred in a Private,not-For-Profit

question 38

Multiple Choice

The transactions listed in the following questions occurred in a private,not-for-profit hospital during 20X8.For each transaction,indicate its effect on the hospital's statement of operations for the year ended December 31,20X8.
-Transaction: Endowment income was earned.The donor placed no restrictions on the investment earnings.
Effect on Statement of Operations:

• A)Increases operating income.
• B)Decreases operating income.
• C)The transaction is reported on the statement of operations,but there is no effect on operating income.
• D)The transaction is not reported on the statement of operations.

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Definitions:

Discipline

Methods or practices used to teach and enforce acceptable patterns of behavior, often within the context of raising children.

Organize

The process of arranging or structuring elements in a systematic way to achieve a desired outcome or order.

Formal Logic

The branch of logic concerned with the structure of reasoning and the validity of arguments, often using symbolic methods.

Intellectual Development

The growth and change in a person's abilities to think, reason, and understand complex concepts and ideas over time.