Which of the Following Is True Regarding the Reporting of Expenses

question 34

Multiple Choice

Which of the following is true regarding the reporting of expenses by private sector, not-for-profit hospitals?

• A) All expenses are considered reductions in unrestricted net assets.
• B) Expenses must be reported by natural i.e. salaries, supplies, etc. classification in the statements.
• C) Both a and b above.
• D) Neither a nor b above.

---

Definitions:

Consolidated Statement

Financial statements that aggregate the financials of a parent company and its subsidiaries, providing a comprehensive overview of the economic activities of the entire group.

Cash Flows

Cash flows refer to the total amount of money being transferred into and out of a business, especially affecting liquidity.

Primary Sources

Original documents or firsthand accounts used in research that provide direct evidence or firsthand testimony.

Information

A collection of data that is processed to be meaningful or useful.