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: The governing board designated assets for plant expansion.
Effect on Statement of Operations:
A)Increases operating income.
B)Decreases operating income.
C)The event is reported on the statement of operations,but there is no effect on operating income.
D)The event is not reported on the statement of operations.

Question

Quizplus · Accepted Answer

The governing board designating assets for plant expansion is not a transaction that affects the hospital's statement of operations. Therefore, option D is the correct answer.

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