Which of the Following Is/are True with Respect to Health

question 29

Multiple Choice

Which of the following is/are true with respect to health care organizations?

• A) Expenses must be reported using their natural classifications.
• B) Assets that have limited use are temporarily restricted on the balance sheet.
• C) Private sector not-for-profits health care entities must disclose expenses by functional classifications, if not provided in the Statement of Operations.
• D) All of the above are true.

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Definitions:

Government Budget

An estimate of income and expenditure for a set period of time, outlining the financial plans and priorities of a government.

Nominal Interest Rate

indicates the percentage increase in money that the borrower pays the lender, not taking into account the eroding effects of inflation on the real value of the money.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Real Interest Rate

The rate of interest an investor expects to receive after allowing for inflation, reflecting the true cost of borrowing and the true yield on investments.