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: Received tuition revenue from hospital nursing program and cash from sales of goods in the hospital gift shop.
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

Both tuition revenue and sales from the gift shop are sources of operating income for the hospital. Therefore, receiving these amounts would increase operating income on the statement of operations.

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