Donated medicines that normally would be purchased by a hospital should be recorded at fair market value and should be credited to

Question

Quizplus · Accepted Answer

Donated medicines should be recorded at fair market value and credited to "Other Revenue" because they are not part of the hospital's normal operating activities and do not relate to patient service revenue. Nonoperating gains and deferred revenues are not appropriate accounts to credit for donated medicines.

Donated Medicines That Normally Would Be Purchased by a Hospital