Select the best answer for each of the following items: 1. An unrestricted pledge from an annual

Question:

Select the best answer for each of the following items:

1. An unrestricted pledge from an annual contributor to a NFP hospital made in December 2019 and paid in cash in March 2020 would generally be credited to

(a) Nonoperating revenue in 2019.

(b) Nonoperating revenue in 2020.

(d) Operating revenue in 2020.

2. A gift to a NFP hospital that is not restricted by the donor should be credited directly to

(a) Fund balance.

(b) Deferred revenue.

(d) Nonoperating revenue.

3. During the year ended December 31, 2020, 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 2020. 30,000

How much revenue (both operating and nonoperating) from donations should Melford report in its 2020 statement activities?

(a) $0.

(b) $30,000.

(d) $130,000.

4. On July 1, 2019, 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, 2022. In Lilydale’s balance sheet at June 30, 2020, this cash should be classified as a $200,000

(a) Restricted current asset.

(b) Restricted noncurrent asset.

(d) Asset whose use is limited.

(AICPA adapted)

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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