The transactions listed in the following questions occurred in a private,not-for-profit hospital during 20X8.For each transaction,indicate its effect on the hospital's statement of operations for the year ended December 31,20X8.
-Transaction: Expended 50 percent of the contributions restricted for research in the previous item.
Effect on Statement of Operations:
A)Increases operating income.
B)Decreases operating income.
C)The transaction is reported on the statement of operations,but there is no effect on operating income.
D)The transaction is not reported on the statement of operations.

Question

Quizplus · Accepted Answer

The expenditure of contributions restricted for research is reported on the statement of operations, but it does not affect operating income as it is considered a release of temporarily restricted net assets.

The Transactions Listed in the Following Questions Occurred in a Private,not-For-Profit