The Difference Between Accounting for Private Not-For-Profit Hospitals and Government-

question 79

Multiple Choice

The difference between accounting for private not-for-profit hospitals and government- owned hospitals is:

• A) Government owned hospitals do not have to prepare a Statement of Cash Flows.
• B) Government owned hospitals do not have to record depreciation.
• C) The equity accounts have different titles and definitions.
• D) All of the above.

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Definitions:

Rate Of Return

The upturn or downturn in investment value over a pre-defined period, cast as a percentage of the cost at investment inception.

Years

A measure of time consisting of 365 days, or 366 in a leap year, used to calculate duration in various financial and scientific contexts.

Compounded Monthly

A method of calculating interest in which the accrued interest is added to the principal sum at the end of each month, thus interest in the next month is earned on the new sum.

Loan Payments

Regular payments made towards paying off the principal and interest on a loan.