1. Hospitals that enter into capitation fee agreements, such as with HMOs, recognize patient service revenues in the same manner (giving consideration to contractual and implied concessions) as for all other patient service revenues. true/false

2. A nonprofit hospital, the Ruth Clark Hospital established a fundraising Foundation at the beginning of its calendar year. By the end of the year, the Foundation had raised $750,000 in cash$600,000 of which was restricted by donors to acquire a new building and $150,000 of which was unrestricted. How should the Ruth Clark Hospital report its interest in the Hospital Foundation and the contributions it received at the end of the first year?

Group of answer choices

a. As Interest in Hospital Foundation of $750,000, Gains without donor restrictionschange in interest in net assets of Hospital Foundation of $150,000, and Gains with donor restrictionschange in net assets of Hospital foundation restricted to capital acquisitions of $600,000

b. As Cash of $750,000, Net assets without donor restrictions of $150,000, and Net assets with donor restrictions of $600,000

c. It should not report the contributions; the Hospital Foundation is a separate entity

d. As Cash of $750,000, Gains without donor restrictions of $150,000, and Gains with donor restrictions of $750,000

3. A group of fine dining restaurants in town get together and agree to provide their leftover, unprepared fresh food to the City Hospital for use in its food service operations. The City Hospital estimates that the fair value of the food received during the year was $22,000. How should City Hospital report the donated food?

Group of answer choices

a. The fair value of the donated food should be disclosed in the Hospital's notes to financial statements

b. None of the above

c. As revenue equal to the fair value of the food when it is received ($22,000 over the course of the year)

d. As revenue equal to the amount it estimates the restaurants paid for the food

4. Nonprofit hospitals are required to include a performance indicator in their operating statements called Excess of revenue over expenses, that excludes unrealized gains and losses on investments and net assets released from restrictions. true/false

5. Some nonprofits hospitals report assets limited as to use when specific resources are restricted by a contract (such as with a lender) or when the nonprofit's governing body has set aside resources for a specific purpose. true/false