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.

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Definitions:

Cash Disbursements

Payments made by a business in cash or cash equivalents, including expenses, debt payments, and distributions to owners.

Net Income

The total profit or loss of a company after all expenses, including taxes and interest, have been deducted from total revenue.

December

The twelfth and final month of the year in the Gregorian calendar, frequently associated with end-of-year summaries and holiday seasons.

Merchandise Purchases

The total cost of goods bought for resale during an accounting period.