NFP Final Exam Review Chapter 14
Questions and Answers Graded A+
Earning without donor restrictions on specific-purpose fund investments that are part of a
hospital's central operations are reported as... General fund revenues without donor
restrictions
Percy's community hospital would ordinarily include proceeds from the sale of balloons in the
gift shop in... Other revenues
Based on Saint Michael Hospital's established billing rate structure, the hospital would have
earned patient service revenue of $8.5 million for the year. However, Saint Michael does not
expect to collect this amount because of charity care provided in the amount of $1 million and
contractual allowances to third-party payers of $750,000. How much should Saint Michael
record as patient service gross revenue for the year? $6.75 million
The BSK Health-Care foundation donated $900,000 as an endowment to be held in perpetuity to
a senior citizens health and welfare organization during the year. The foundation stipulated that
the income and investment appreciation be used to maintain its preventive care center for the
elderly. The following year, the endowment principal had an investment appreciation of $60,000
and investment income of $80,000. The organization spent $70,000 to maintain it preventive care
, center during the year. What is the amount of change in net assets with donor restrictions that the
organization should report for the year? $70,000
A NFP hospital signs a contract with an insurance company in which the company agrees to pay
it $6 million in capitation fees for the year July 1, 2020 through June 30, 2021. Between July 1,
2020 and December 31, 2021, the hospital provides services that, at its standard rates, would bill
at $3.4 million. Between Jan 1, 2020 and June 30, 2021, it provides services that it would bill at
$2.8 million. For the year ending December 31, 2020, the hospital should recognize capitation
revenue of... $3 million
During a particular year, a NFP hospital provides services that at standard rates would be billed
at $200 million. this amount includes $10 million of charity care. Of the remaining $190 million,
it estimates that $120 million will be billed to third-party providers, which, per contractual
agreements, will pay only 75% of the standards rate. Of the $70 million to be billed to
individuals, the hospital estimates that $40 million will have to be written off as bad debts. The
hospital should recognize net patient care revenue as ... $120
A NFP hospital received a donor-restricted contribution of $10 million, which is used to purchase
new equipment. It estimates that the useful life of the equipment will be 10yrs with no salvage
value. In the year of the contribution, the hospital should recognize... Depreciation of $1
million classified as an expense without donor restrictions
Questions and Answers Graded A+
Earning without donor restrictions on specific-purpose fund investments that are part of a
hospital's central operations are reported as... General fund revenues without donor
restrictions
Percy's community hospital would ordinarily include proceeds from the sale of balloons in the
gift shop in... Other revenues
Based on Saint Michael Hospital's established billing rate structure, the hospital would have
earned patient service revenue of $8.5 million for the year. However, Saint Michael does not
expect to collect this amount because of charity care provided in the amount of $1 million and
contractual allowances to third-party payers of $750,000. How much should Saint Michael
record as patient service gross revenue for the year? $6.75 million
The BSK Health-Care foundation donated $900,000 as an endowment to be held in perpetuity to
a senior citizens health and welfare organization during the year. The foundation stipulated that
the income and investment appreciation be used to maintain its preventive care center for the
elderly. The following year, the endowment principal had an investment appreciation of $60,000
and investment income of $80,000. The organization spent $70,000 to maintain it preventive care
, center during the year. What is the amount of change in net assets with donor restrictions that the
organization should report for the year? $70,000
A NFP hospital signs a contract with an insurance company in which the company agrees to pay
it $6 million in capitation fees for the year July 1, 2020 through June 30, 2021. Between July 1,
2020 and December 31, 2021, the hospital provides services that, at its standard rates, would bill
at $3.4 million. Between Jan 1, 2020 and June 30, 2021, it provides services that it would bill at
$2.8 million. For the year ending December 31, 2020, the hospital should recognize capitation
revenue of... $3 million
During a particular year, a NFP hospital provides services that at standard rates would be billed
at $200 million. this amount includes $10 million of charity care. Of the remaining $190 million,
it estimates that $120 million will be billed to third-party providers, which, per contractual
agreements, will pay only 75% of the standards rate. Of the $70 million to be billed to
individuals, the hospital estimates that $40 million will have to be written off as bad debts. The
hospital should recognize net patient care revenue as ... $120
A NFP hospital received a donor-restricted contribution of $10 million, which is used to purchase
new equipment. It estimates that the useful life of the equipment will be 10yrs with no salvage
value. In the year of the contribution, the hospital should recognize... Depreciation of $1
million classified as an expense without donor restrictions
