1. A principal source of revenue for hospitals is from patient services. Patient services revenue for hospitals is recorded at:
a. Amounts actually billed to patients
b. The hospital’s full established rates for services provided
c. Amounts actually received from patients
d. Amounts actually billed to patients less discounts granted
2. Premium fees:
a. Are earned whether the standard charges for services actually rendered are more or less than the amount of the fee
b. Are earned only to the extent of services actually provided in the period
c. Must be returned to the subscriber if services are not provided
d. Are initially recorded as deferred revenues
3. Oliver Hardwick, a roofing contractor, repaired the roof on the Mosely Clinic, a nongovernmental health care entity, at no charge to the clinic. The estimate for the job was $3,000.
a. The donated services meet the criteria in FASB ASC and should be reported in the statement of operations as unrestricted support—donated services.
b. The donated services should be described in notes to the financial statements, but not included in the statement of operations.
c. Only donated services that directly provide health care to patients can be recognized in the financial statements.
d. The donated services are a direct addition to the current fund.
4. Charity care provided by a not-for-profit hospital:
a. Is reported as an operating expense in the statement of operations of unrestricted funds
b. Is reported as a deduction from gross patient service revenues in the statement of operations of unrestricted funds
c. Is excluded from both gross patient service revenue and expense
d. Is reported in the statement of functional expenses
5. Discounts allowed to third-party payors in hospital accounting are recorded as:
a. Charity care
b. Contractual adjustments
c. Courtesy allowances
d. Mandatory discounts