Bridger Hospital,which is operated by a religious organization,provides charity care for the indigent living in the region served by the hospital.How should Bridger report the amount of its charity care on its financial statements?

Question

Quizplus · Accepted Answer

Charity care provided by hospitals, especially those operated by religious organizations, does not generate revenue and therefore is not reported as revenue on the financial statements. Instead, the amount of charity care is disclosed in the notes to the financial statements to provide transparency and information about the hospital's community support and financial assistance activities. This approach ensures that the financial statements accurately reflect the hospital's operations without inflating revenue figures with non-revenue-generating activities.

Bridger Hospital,which Is Operated by a Religious Organization,provides Charity Care