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

Gains from the sale of endowment investments that are not expendable do not affect the operating income of a not-for-profit hospital. These are typically reported in the statement of financial position or notes, rather than the statement of operations, as they are restricted funds and not part of the operational revenue.

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