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 equipment with all of the contributions 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

The acquisition of equipment with contributions is a non-operating activity and is not expected to impact the hospital's operating income. Therefore, the transaction is reported on the statement of operations, but there is no effect on operating income.

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