Question

Assume that each organization is a private, not-for-profit entity. It is possible that an item need not be reported on the hospital's statement of operations. true or false

Answer 1

It is true that some items may not be reported on a private, not-for-profit hospital's statement of operations, as they follow specific accounting rules.

Step-by-step explanation:

It is true that an item need not be reported on the hospital's statement of operations if the hospital is a private, not-for-profit entity. Not-for-profit organizations, including private hospitals, follow specific accounting rules which may differ from for-profit entities. These rules allow for certain types of contributions, donations, and other items that may not directly affect operations to be excluded from the statement of operations.