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

question 35

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: Received contributions restricted by donors for research activities.
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:

DRGs

Diagnosis-Related Groups; a system for categorizing hospital cases into groups with similar clinical characteristics and resource use, often used for billing and reimbursement purposes.

Ideology

A system of ideas and ideals, especially one that forms the basis of economic or political theory and policy.

Technical Knowledge

Refers to the specialized skills, techniques, and facts individuals have in a specific field or activity.

Medicine Profession

A field focused on the diagnosis, treatment, and prevention of diseases and illnesses through various forms of therapy and medications.