CHAPTER 22 - CHAPTER 22 Multiple Choice 22-1 22-2 b d The...

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CHAPTER 22 Multiple Choice 22-1: b. (P500,000 – P300,000) 22-2: d. The total tuition fees for educational and general purposes. 22-3: d. (P1,240,000 – P160,000) 22-4: a. Unrestricted cash contribution received from donors are to be reported as increase in net cash provided by operation. 22-5: d. The remaining contribution of P5,000 on December 31, 2004. 22-6: b. Unregistered pledges from donors are treated as revenues at the time of the pledge. 22-7: d. Patient revenues P 5,000,000 Nursing services 1,000,000 Professional services 500,000 Total revenues P 6,500,000 Less: Staff discounts P50,000 Allowances 230,000 Third party payors 800,000 1,080,000 Net revenues P 5,420,000 Bad debts are treated in the usual manner as expense. 22-8: a. As of July 31, 2004, all of the funds are properly includible in the Plan Funds, for a total of P900,000. 22-9: c. (P800,000 – P110,000) 22-10: d. Patient revenues (net of charity care) P 600,000 Less: contractual adjustments 200,000 Net patient service revenues P 400,000 22-11: c. 147
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22-12: c. The contributed services are debited to Salary Expense account and credited to Contribution Revenue account. 22-13: c. The net effect on unrestricted net assets of spending P10,000 on research is zero. 22-14: b. (P5,000,000 + P50,000) The P1,000,000 contribution from the donor, who stipulated that the contribution be invested Indefinitely, should be reported as permanently restricted revenue. 22-15: c. 22-16: b. Both are treated as a financing activity on the statement of cash flows. 22-17: a. Cash flows from operating activities would include both the cash received from patient service Revenue of P300,000 and the cash received from gift shop sales of P25,000. 22-18: b. Cash received from patient revenue (collection of receivables) and from tuition revenue are both included in the amount reported for cash flows from operating activities. The other cash receipts would be reported as increases in cash flows provided by financing activities.
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