zubairs – I am sure you did fine! Also, good luck to everyone else taking their exams today! Just one more day or work for me then 5 days of nonstop chaos coming my way. Ready for a break at this point!! Good luck everyone!
AUD - 73,91
FAR - 79 - Thank you God!
BEC - 73,79!!!!
REG - 92 whatttt??!
I used Becker review + flashcards, Ninja Audio, Ninja MCQ supplement on BEC and REG.
They're actually both true. This was from a sim on Wiley and it didnt provide any explanations (so stupid) but I had the same answers as you @UHC. I think that B is true because since you're liquidating all of the inventory, rather than just the last in, it will result in higher profits. That's my thinking but it could be way off base.
I'm a little confused with net patient service revenue for NFP hospitals, regarding bad debt expense. Do you not back it out to get to the NRV? One question is asking for net patient service revenue and you dont include the provision for bad debts and then another question is asking for the NRV of gross receivables and you do include the allowance for uncollectible accounts.
OMG, I remember i struggled with that too! Provision for bad debt I believe was “bad debt expense” and I struggled with it because the other side of the entry, to me, was the allowance.. but for wahtever reason, they don't include the “expense” in the NRV like you would if they gave you the allowance figure.. mad confusing. i agree. this was one of those problems that i said i would commit to memory and not argue. lol
My thoughts would be if you are calculating net revenue or net receivables, then you calculate it net of any doubtfuls (so you either dont include them, or you subtract them from gross revenue/receivables to get your net value). And if you are calculating gross receivables/revenue then you add the doubtfuls back to your receivables to get a gross value.
@hopeful the question was asking what would be deducted from gross receivables to get to NRV and the answer was the allowance for uncollectible accounts, allowance for contractual adjustments, and allowance for employee discounts.
The other question was asking how to calculate net patient service revenue and it gave you figures for provision for bad debt, charity care, and contractual adjustments, and you only subtracted the charity care and contractual adjustments.
Or do you never subtract bad debt expense/allowance from patient service revenue because bad debt/allowance would be an expense rather than a contra account…but you would subtract it from the gross receivables?
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