Advanced Accounting 2 Chap 22
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.
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
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.
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