A county hospital's patient services charges for the year were $3,000,000. Of this amount, 25% is deemed to be uncollectible, 5% is considered to be charity services after the services were provided, and 10% will be reduced by contractual adjustments with third-party providers. How much related to these items will be reported as expense in the external financial statements?

Question

Quizplus · Accepted Answer

The amounts deemed uncollectible, considered charity, or reduced by contractual adjustments are not reported as expenses in external financial statements. Instead, they are adjustments to revenue or accounted for as contra-revenues, thus not classified as expenses.

A County Hospital's Patient Services Charges for the Year Were