The community hospital of Briarwood normally includes proceeds from sales of meals in its cafeteria as Ancillary service revenues Other revenues Deductions from dietary meal service expenses Patient service revenues QUESTION 59 "In accounting for health care organizations, restricted net assets are" "Not available for current operating use; however, the income generated is available for current operating use" Not available unless the directors remove the restrictions Restricted as to use only for board-designated purposes "Restricted as to use by the donor, grantor, or other source of the resources" QUESTION 60 "In the process of general purpose external financial reporting, a health care organization is required to present" "A separate statement of changes in equity, net assets, or fund balances" A statement of activities or operations Performance indicators (required only of for-profit entities) Fund group information (required only of not-for-profit organizations) "A specialized health care facility normally purchases its medicines. However, this month a wealthy philanthropist donates the medicines. The donated medicines should be recorded at fair market value and should be credited to" Deferred revenue Unrestricted net assets Non-operating gains Other revenues QUESTION 56 "The Gulf Coast bank is holding a $750,000 donation in an independent permanent trust with the investment income dedicated for use by Coastal Hospital for operating purposes. The $750,000 principal should be:" Disclosed in notes to the financial statements of the hospital Reported as a permanently restricted net asset of the hospital Reported as non-operating revenue of the hospital Reported as an asset limited as to use by the hospital QUESTION 57 Which of the following would normally be considered ongoing or central transactions for a not-for-profit hospital? Recovery room fees for surgical patients Room and board fees from patients Both of the above Neither of the above "A hospital estimates that, based on past experience, it will incur $5 million in malpractice claims as a result of services rendered in the current period. The hospital carries a malpractice insurance policy with a yearly $2 million deductible clause. The amount that should appear on its yearend financial statement as Claims Expense (Loss) should be" $0$2million$3million$5million QUESTION 53 "A hospital carried a 2-year malpractice insurance policy that allows for retroactive premium adjustments based on experience (claims actually incurred). The basic premium is $300,000, payable in advance. At the end of the first year the hospital estimates that it will have to pay an additional $80,000 in premiums as a result of claims filed in the current year and it estimates that it will incur additional premiums in the second year of $100,000 as a result of claims filed in the second year. The amount of insurance expense that should appear on the financial statements at the end of the first year should be" "$150,000""$230,000""$300,000""$480,000" QUESTION 54 Sponsors of not-for-profit health care organizations generally include Universities Community Organizations Religious Organizations Any of the above