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: A gain was realized from the sale of endowment investments. The gain is not expendable.
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 gain from the sale of endowment investments that is not expendable is typically not reported on the statement of operations for a not-for-profit hospital. Instead, it is reported in the statement of changes in net assets.

The Transactions Listed in the Following Questions Occurred in a Private