Essentials of Accounting for Governmental and Not-for-Profit Organizations 12th Edition by Paul Copley

Exercise 3

For each of the following items, indicate where it would appear in the Statement of Operations for a private not-for-profit hospital:
1. The premium from a capitation agreement, whereby a hospital agrees to provide services under a prearranged fixed amount.
2. Contractual adjustments for Medicare and Medicaid.
3. Customary charges for charity care.
4. Depreciation expense.
5. Interest expense.
6. Provision for bad debts.
7. Unrestricted investment income.
8. Purchases of equipment.