Matching Effects of Transactions on a Hospital’s Financial Statements [AICPA Adapted]
DeKalb Hospital, a large not-for-profit organization, has adopted an accounting policy that does not imply a time restriction on gifts of long-lived assets.
For each of the six items presented, select the best answer from the Answer List.
| Transactions |
| Answer List |
1. | DeKalb’s board designates $1,000,000 to | A. | Increase in unrestricted revenues, |
| purchase investments whose income will |
| gains, and other support |
| be used for capital improvements. | B. | Decrease in an expense |
2. | Income from investments in item 1, which | C. | Increase in temporarily restricted |
| was not previously accrued, is received. |
| net assets |
3. | A benefactor provided funds for building | D. | Increase in permanently restricted |
| expansion. |
| net assets |
4. | The funds in item 3 are used to purchase a | E. | No required reportable event |
| building in the fiscal period following the |
| |
| period in which the funds were received. |
|
|
5. | An accounting firm prepared DeKalb’s |
|
|
| annual financial statements without charge. |
|
|
6. | DeKalb received investments subject to the |
|
|
| donor’s requirement that investment income |
|
|
| be used to pay for outpatient services. |
|
|
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.