"Moore Art Association, a not-for-profit entity, received a cash gift of $10 million. The association trustees decided to use the gift to establish a permanent endowment for the association. The income from the endowment would be used to provide grants to promising sculptors and students of the history of sculpture. The association should report the gift as an increase in" Permanently restricted net assets. Temporarily restricted net assets. Unrestricted net assets Board restricted net assets QUESTION 68 A term endowment is a gift with donor specifications whereby The principal is available for expenditure after a specific period of time. The principal must be returned to the donor after a specific period of time. The income generated must be added to the principal after a specific period of time. The income generated must be expended within a specified period of time. QUESTION 69 Unrestricted revenues of a not-for-profit health care organization generally are subdivided into patient care revenue and other revenue. Which of the following revenues would NOT be considered patient care revenue? Fees for providing medical records. Charges for room and board. Charges for operating room services. Laboratory and pharmacy fees. "A not-for-profit hospital signs a contract with an insurance company in which the company agrees to pay the hospital $9 million in capitation fees for the year July 1, 2017, through June 30, 2018. Between July 1, 2017 and December 31, 2017, the hospital provides services that, at its standard rates, would bill at $5.1 million. Between January 1, 2017, and June 30, 2018, it provides services that it would bill at $4.2 million. For the year ending December 31,2017 , the hospital should recognize capitation revenue of" $0 $4.5 million $5.1 million $9 million QUESTION 65 "During a particular year, a not-for-profit hospital provides services that at standard rates would be billed at $400 million. This amount includes $20 million of charity care. Of the remaining $380 million, the hospital estimates that $240 million will be billed to third-party providers which, per contractual agreements, will pay only 75 percent of the standard rate (i.e., $180 million). Of the $140 million to be billed to individuals, the hospital estimates that $80 million will have to be written off as bad debts. The hospital should recognized net patient care revenue of" $240 million $320 million $380 million $400 million QUESTION 66 Variance power refers to the ability "Of a not-for-profit organization to use property for commercial purposes, even though it was zoned for residential purposes." Of a not-for-profit organization to alter the terms of any purpose restrictions associated with a contribution that it has received. Of a donor to change the beneficiary of a gift from the beneficiary initially specified. Of a charitable organization to unilaterally decide to direct the use of donated assets to a beneficiary other than that specified by the donor. "What amount should the hospital report as net patient service revenue in its statement of activities for the fiscal year ending September 30 , 2017? "$4,080,000""$4,140,000""$4,030,000""$4,410,000" QUESTION 62 "Based upon St. Thomas Hospital s established billing rate structure, the hospital would have earned patient service revenue of $5,100,000 for the year. However, the hospital does not expect to collect this amount because of charity care provided in the amount of $600,000 and contractual allowances to third-party payers of $450,000. How much should the hospital record as patient service revenue for the year?" "$5,100,000""$4,650,000""$4,500,000""$4,050,000" QUESTION 63 "The LRF Healthcare Foundation donated 1,800,000 as a permanent endowment to a senior citizen 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 endowment principal had an investment appreciation of $120,000 and investment income of $160,000. The organization spent $140,000 to maintain its preventive care center during the year. What is the amount of change in temporarily restricted net assets that the organization should report?" "\$140,000" "\$160,000" "\$280,000" "\$1,940,000