CH 17 Sol - All


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350 CHAPTER 17: ACCOUNTING FOR HEALTH CARE ORGANIZATIONS OUTLINE Number Topic Type/Task Status (re: 11/e) Questions: 17-1 Fund accounting Explain 19-1 revised 17-2 Financial statements List 19-2 revised 17-3 Capital assets Compare 19-3 revised 17-4 Deductions from revenue Explain 19-4 17-5 Investments Compare 19-5 17-6 Restricted gifts Describe 19-6 revised 17-7 Assets limited as to use Explain 19-7 17-8 Contingent liabilities Describe 19-8 17-9 Diagnosis-related groups Explain 19-9 17-10 Continuing care retirement communities List 19-10 Cases: 17-1 Charity care Evaluate 19-1 17-2 Purchase of a health care organization Evaluate 19-2 17-3 Health care reform Internet 19-3 Exercises/Problems: 17-1 Various Multiple Choice 19-1 17-2 Nongovernmental hospital Journal Entries, F. S. 19-2 17-3 Restricted contributions Journal Entries 19-3 17-4 Third party payors Calculate 19-4 17-5 Public hospital – Enterprise Fund Financial statements 19-5 revised 17-6 Public hospital – Enterprise Fund Journal Entries 19-6 17-7 Nongovernmental hospital Financial statements 19-7 17-8 Nongovernmental hospital - Errors Journal Entries 19-8
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351 CHAPTER 17: ACCOUNTING FOR HEALTH CARE ORGANIZATIONS Answers to Questions 17-1. False. FASB permits for-profit and not-for-profit health care organizations to follow the AICPA Audit and Accounting Guide Health Care Organizations , which includes SFAS Nos. 116 and 117 guidance for not-for-profit health care providers. GASB Statement No. 34 guidance requires governmental health care providers engaged in business-type activities to use proprietary fund accounting principles, and those engaged in governmental activities to use governmental funds. The AICPA Audit and Accounting Guide Health Care Organizations, considered category (b) authority after GASB and FASB statements according to AICPA SAS No. 69 , allows fund accounting for internal purposes. 17-2. The AICPA Audit and Accounting Guide Health Care Organizations requires health care providers to issue a Balance Sheet, Statement of Operations, Statement of Changes in Equity (or net assets/fund balance), and a Statement of Cash Flows, as well as Notes to the Financial Statements. Considerable discretion, however, is allowed in presenting this financial information. Governmental health care organizations that engage in both governmental and business-type activities must provide fund financial statements and government-wide financial statements, according to GASB Statement No. 34 . 17-3. There are no longer major differences between the accounting treatment accorded hospital property, plant, and equipment used in rendering hospital services and the accounting treatment accorded capital assets of governmental units. Prior to GASB Statement No. 34 governmental hospital plant assets may have been reported in a general fixed assets account group, rather than capitalized and reported as property, plant and equipment on the Enterprise Fund balance sheet and in the business-type activities column of the government-wide financial statements.
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This note was uploaded on 04/12/2011 for the course ACCT 2500 taught by Professor Johnmalone during the Fall '08 term at Cuyahoga CC.

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