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: Acquired investments with cash received 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

Acquiring investments with cash is considered an investing activity, not an operating activity. Therefore, it does not affect the statement of operations but is reflected in the statement of financial position and possibly the statement of cash flows.

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