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

question 41

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: Depreciation expense was recorded for the year.
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.

---

Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increases, contrasting with normal goods.

Peanut Butter

A food paste or spread made from ground, dry-roasted peanuts.

Recession

A downturn in the economy.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in market balance.