Nonprofit hospitals provide two operating statements-one a typical operating statement reports only on unrestricted net assets, the other reports changes in the two required net asset classes.

Question

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In effect, nonprofit hospitals present two operating statements. One, the statement of operations, reports on the basic day-to-day revenues and all expenses by presenting only changes in net assets without donor restrictions. The other statement, called the statement of changes in net assets, reports changes in the required two net asset classifications as well as changes in net assets for the hospital as a whole.

Nonprofit Hospitals Provide Two Operating Statements-One a Typical Operating Statement