1.A private not-for-profit hospital has provided patient services for $1,200,000. The hospital bills 60% Of this amount to patients and 40 percent to third part government program and insurance companies. How should the hospital record the revenue?

2.A county acquires supplies for its fire department and uses the purchases method of accounting. How would the county report in its fund statement?

And how would be reported if consumption method is used?

3.Which statement below is correct for financial statements of not-for-profit entities?
a. Pledged contributions are recognized in the accounting period in which pledged by donors.

b. A not-for-profit entity’s Statement of Financial Position includes a section specifically for net assets.

c. Contributed assets are recognized by a not-for-profit entity as public support contribution revenue.

d. Not-for-profit entities issue a Statement of Activities.

4.ABC City's sanitation department purchases an automobile for $20,000 and trades in the old car for $6,000 paying a net cash payment of $14,000.The entry in ABC’s general fund should

a.Debit Expenditures for 20000

b.Credit automobile for 6000

C.debit Expenditures for 14000

5.ABC County’s general fund had the following transactions during the year:

Transfer to a debt service fund 200,000

Payment to vendor for supplies $600,000

Purchase of equipment $500,000

What amount should ABC report as other financing uses in the general funds statement of revenue, expenditure and change in fund balances ?

A.200000

B.1100000

C.1300000

D.700000

Answer rating: 100% (QA)

1Service revenues of 720000 will be charged against the patients head while Deferred service revenue... View the full answer