Question

Which of the following statements is TRUE?

A. Not-for-profit business-oriented health care organizations use accrual accounting
B. Government owned hospitals follow FASB Statements (116 and 117) for not-for-profit organizations
C. Government-owned health care organizations do not report depreciation expense
D. The AICPA Health Care Guide provides accounting and reporting requirements that override GASB and FASB standards, but apply only to health care providers
E. Both commercial and private sector not-for-profit hospitals and health care providers follow FASB Statements 116 and 117

Answer 1

C. Government-owned health care organizations do not report depreciation expense

Step-by-step explanation:

C. Government-owned entities do not provide for depreciation of assets, they are written off immediately they are acquired