NFP Final Exam Review Chapter 14 Questions and Answers 100% Pass

NFP Final Exam Review Chapter 14 Questions and Answers 100% Pass In what significant ways would each of the 3 major statements of a gov't hospital differ from those of a private NFP hospital? - Private NFP hospitals have to follow the provisions of FASB ASU No. 2016-14 as to the form and content of their financial statements. the balance sheet of a NFP hospital , but not a gov't hospital, must display the two categories of donor restrictiveness. Gov't healthcare entities do not have a statement comparable to the statement of changes in net assets. What are the major categories of revenues and expenses for a health-care org? - The major categories of revenues for a health care org are divided into at least 2 classifications, patient care revenues and other revenues. Patient care revenues include routine services, other nursing services, and professional services. Other revenues include auxiliary sales, fees for educational programs, rental of facilities other than to residents, 2 Katelyn Whitman, All Rights Reserved © 2025 investment gains and losses and miscellaneous sources. The major expenses of a healthcare org must be presented at a minimum in two major categories, program service expenses and support services such as general/admin expenses. What are the differences between recording a hospital's expenses by natural classifications than by function? - Expenses may be classified using either a natural classification (salaries, supplies, etc.) or a functional classification (impatient services, ancillary outpatient services, etc.) If the expenses are classified using a natural classification then the functional classifications must be presented in the notes to the financial statements. Why is the statement of functional expenses requied for voluntary health and welfare organizations? - The statement of functional expenses is required for NFP orgs, because for most of these entities major source source of revenues is from donations rather than from the sale of goods or services. What are capitation fees and how should they be accounted for? - Capitation fees are those received in exchange for a health care orgs 3 Katelyn Whitman, All Rights Reserved © 2025 agreement either with an individual or with a company to provide specified services to a specified population during a specified period of time. The fees are based on the number of persons covered and on expected costs to be incurred rather than on actual services provided. Revenues from capitation fees should generally be shown apart from other types of revenues and should be accounted for over the period covered, not as services provided. Hospitals and other health-care organizations provide services knowing that hey will collect from third-party payers, such as insurance companies, considerably less than their establishe