Question

Alpha Hospital, a nongovernmental not-for-profit organization, has adopted an accounting policy that does not imply a time restriction on gifts of long-lived assets. For items (1) through (6), indicate the manner in which the transaction affects Alpha’s financial statements.
a. Increase in unrestricted revenues, gains, and other support.
b. Decrease in an expense.
c. Increase in temporarily restricted net assets.
d. Increase in permanently restricted net assets.
e. No required reportable event.
1. Alpha’s board designates $1,000,000 to purchase investments whose income will be used for capital improvements.
2. Income from investments in item (1) above, which was not previously accrued, is received.
3. A benefactor provided funds for building expansion.
4. The funds in item (3) above are used to purchase a building in the fiscal period following the period the funds were received.
5. An accounting firm prepared Alpha’s annual financial statements without charge to Alpha.
6. Alpha received investments subject to the donor’s requirement that investment income be used to pay for outpatient services.


$1.99
Sales0
Views76
Comments0
  • CreatedApril 13, 2015
  • Files Included
Post your question
5000