In the Statement of Operations of a Not-For-Profit Hospital,which of the Following

question 35

Multiple Choice

In the statement of operations of a not-for-profit hospital,which of the following is not likely to be a factor in determining Excess of revenues over expenses?

• A)net patient service revenue
• B)change in unrealized gains and losses on investments
• C)investment income
• D)provision for bad debts

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Definitions:

Financing Activity

Financial transactions and events that affect the equity and debt structure of a company, including borrowing, repaying debt, and issuing or buying back shares.

Operating Activity

Transactions and events related to the core business operations of a company, including revenue generation and expenses related to producing goods and services.

Gain

A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Indirect Method

A method used in cash flow statements to adjust net income for the changes in non-cash accounts to calculate the cash from operating activities.