Governmental hospitals are required to distinguish between operating and nonoperating revenue and expenses but not between changes in net assets with donor restrictions and net assets without donor restrictions.

Question

Quizplus · Accepted Answer

The statement of revenues, expenses, and changes in fund net position is required to distinguish between operating and nonoperating revenues and expenses and to provide a separate subtotal for operating income. Because governmental hospital operating statements are all-inclusive, covering both unrestricted and restricted resources and reporting of amounts released from restrictions are not necessary.

Governmental Hospitals Are Required to Distinguish Between Operating and Nonoperating