In accordance with the FASB Codification, donated medicines that normally would be purchased by a hospital should be recorded at fair value and credited to which of the following?

Question

Quizplus · Accepted Answer

Donated medicines that a hospital would normally purchase are recorded at their fair value as per the FASB Codification. These are credited to "Other Revenue" because they are not part of the hospital's primary operations like patient services, nor are they nonoperating gains or deferred revenues.

In Accordance with the FASB Codification, Donated Medicines That Normally