When accounting for health care organizations,services provided for charity care are:

Question

Quizplus · Accepted Answer

Services provided for charity care are not recorded as revenues as they are not expected to be paid for by the patient. However, the costs incurred in providing these services are still expensed as normal. This is in accordance with Generally Accepted Accounting Principles (GAAP) which require expenses to be recognized in the period in which they are incurred, regardless of whether or not revenue is generated. Therefore, option A is the correct answer.

When Accounting for Health Care Organizations,services Provided for Charity Care