Which of the Following Is Not Correct with Respect to Reporting

question 31

Multiple Choice

Which of the following is not correct with respect to reporting of patient service revenue for health care organizations?

• A) Patient service revenue does not include amounts representing charity care.
• B) Changes to estimates of contractual adjustments related to prior periods must be reported as a prior period adjustment if material.
• C) Unrestricted bequests and investment income for current unrestricted purposes may be reported as either operating or nonoperating revenue, depending on the policy of the entity.
• D) Patient service revenue must be reported net of estimated adjustments for contractual adjustments.