Multiple Choice
Select the best answer for each of the following items:
1. An unrestricted pledge from an annual contributor to a not-for-profit hospital made in
December 2011 and paid in cash in March 2012 would generally be credited to
(a) Nonoperating revenue in 2011.
(b) Nonoperating revenue in 2012.
(c) Operating revenue in 2011.
(d) Operating revenue in 2012.
2. A gift to a not-for-profit hospital that is not restricted by the donor should be credited directly to
(a) Fund balance.
(b) Deferred revenue.
(c) Operating revenue.
(d) Nonoperating revenue.
3. During the year ended December 31, 2012, Melford Hospital received the following donations, stated at their respective fair values:
Employee services from members of a religious group....... $100,000
Medical supplies from an association of physicians. These supplies were
restricted for indigent care and were used for such purposes in 2012.. 30,000
How much revenue (both operating and nonoperating) from donations should Melford
report in its 2012 statement activities?
(a) ........... $0.
(b) ........... $30,000.
(c) ........... $100,000.
(d) ........... $130,000.
4. On July 1, 2011, Lilydale Hospital’s Board of Trustees designated $200,000 for expansion of outpatient facilities. The $200,000 is expected to be expended in the fiscal year ending
June 30, 2014. In Lilydale’s balance sheet at June 30, 2012, this cash should be classified as a $200,000
(a) Restricted current asset.
(b) Restricted noncurrent asset.
(c) Unrestricted current asset.
(d) Asset whose use is limited.