1. Hospital room charges for telephone and television rentals should be classified as:
a. Patient service revenues
b. Other operating revenues
c. Nonoperating gains
d. Premium fees
2. A hospital bills patients at gross rates and provides for courtesy allowances for employees when they settle their accounts at less than gross rates. In accordance with this system, the journal entry to record courtesy allowances would appear as:
a. Debit—cash; debit—courtesy allowance; credit—accounts receivable
b. Debit—courtesy discount; credit—allowance for courtesy discounts
c. Debit—cash; debit—patient service revenue; credit—accounts receivable
d. Debit—accounts receivable; credit—courtesy allowances; credit—patient service revenue
3. Unrestricted income from a nongovernmental health care entity’s permanent endowment investments should be reported:
a. In the permanently restricted net assets as unrestricted support—nonoperating gains
b. In the statement of operations as unrestricted support—operating gains
c. In the statement of operations as unrestricted revenues—investment income
d. In the permanently restricted net assets as restricted revenues—investment income
4. Depreciation and amortization of hospital property and equipment:
a. Are required for both governmental and nongovernmental hospitals
b. Are not recorded in the statement of operations, but accumulated depreciation is disclosed in the statement of financial position
c. Are reported in the plant replacement and expansion fund of hospitals that use fund accounting
d. Are optional on donated property
5. A nongovernmental health care entity receives a gift of cash that is specified by the donor to be used for cancer research. The contribution will most likely be reported in:
a. Unrestricted net assets
b. Temporarily restricted net assets
c. Permanently restricted net assets
d. Either a or b, depending on the mission and activities of the health care entity