Assume Mercy Hospital uses accrual accounting. Which of the following statements is most correct? a. Supplies...
Assume Mercy Hospital uses accrual accounting. Which of the following statements is most correct?
| a. |
Supplies expense is recognized when medical supplies are delivered to the hospital by the vendor. |
|
| b. |
Patient service revenue is recognized when payment is received by the hospital from a third-party payer. |
|
| c. |
Salaries expense is recognized when payroll checks are written. |
|
| d. |
Patient service revenue is recognized when healthcare services are provided. |
|
| e. |
Statements a., c., and d. are all correct. |
Homework Answers
Accrual accounting considers revenue and expenses when they are earned and incurred not cash received and cash payment made.
The following statement is correct:
Patient service revenue is recognized when healthcare services are provided.
Hence option d is correct.
Add Answer to:
Assume Mercy Hospital
uses accrual accounting. Which of the following statements is most
correct?
a.
Supplies...
Assume Mercy Hospital uses accrual accounting. Which of the following statements is most correct? O Supplies...
Assume Mercy Hospital uses accrual accounting. Which of the following statements is most correct? O Supplies expense is recognized when medical supplies are delivered to the hospital by the vendor. O Patient service revenue is recognized when payment is received by the hospital from a third-party payer. O Salaries expense is recognized when payroll checks are written. 0 Patient service revenue is recognized when healthcare services are provided. O Statements a., c., and d. are all correct.
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Which of the following statements about cash basis accounting and accrual basis accounting is correct? Multiple...
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1) If a company is using accrual basis accounting, when should it record revenue? A) when...
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During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following...
During its current fiscal year, Evanston General Hospital, a
not-for-profit health care organization, had the following
revenue-related transactions (amounts summarized for the
year).
1.
Services provided to inpatients and outpatients amounted to
$9,660,000, of which $455,000 was for charity care, $933,000 was
paid by uninsured patients, and $8,272,000 was billed to Medicare,
Medicaid, and insurance companies.
2.
Donated pharmaceuticals and medical supplies valued at $270,000
were received and utilized as general expenses.
3.
Medicare, Medicaid, and third-party payors (insurance companies)...
During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following...
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Which of the following statements about accountable care organizations (ACOs) is most correct? O ACOs must...
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Assume Mercy Hospital uses accrual accounting. Which of the following statements is most correct? O Supplies expense is recognized when medical supplies are delivered to the hospital by the vendor. O Patient service revenue is recognized when payment is received by the hospital from a third-party payer. O Salaries expense is recognized when payroll checks are written. 0 Patient service revenue is recognized when healthcare services are provided. O Statements a., c., and d. are all correct.
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1) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) before services are performed D) when cash is received, 30 days after the completion of the services 2) When does a company account for revenue if it uses cash basis accounting? A) when services are...
During its current fiscal year, Evanston General Hospital, a
not-for-profit health care organization, had the following
revenue-related transactions (amounts summarized for the
year).
1.
Services provided to inpatients and outpatients amounted to
$9,660,000, of which $455,000 was for charity care, $933,000 was
paid by uninsured patients, and $8,272,000 was billed to Medicare,
Medicaid, and insurance companies.
2.
Donated pharmaceuticals and medical supplies valued at $270,000
were received and utilized as general expenses.
3.
Medicare, Medicaid, and third-party payors (insurance companies)...
Which of the following statements about accountable care organizations (ACOs) is most correct? O ACOs must include the following set of providers: hospital, physician group, urgent care center, and home health agency. O ACOs need only a minimum of managerial systems in place because the payer (primarily Medicare) assumes most of the managerial functions. GACOs are radically different from other attempts to improve the delivery of health services. O ACOs can distribute bonuses when targets are met and impose penalties...
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