Palma Hospitals patient service revenues for services provided in 2018, at established rates,…

Palma Hospitals patient service revenues for services provided in 2018, at established rates, amounted to $8,000,000 on the accrual basis. For internal reporting, Palma uses the discharge method. Under this method, patient service revenues are recognized only when patients are discharged, with no recognition given to revenues accruing for services to patients not yet discharged. Patient service revenues at established rates using the discharge method amounted to $7,000,000 for 2018. According to GAAP, Palma should report patient service revenues for 2018 of a. either $8,000,000 or $7,000,000
Palma Hospitals patient service revenues for services provided in 2018, at established rates, amounted to $8,000,000 on the accrual basis. For internal reporting, Palma uses the discharge method. Under this method, patient service revenues are recognized only when patients are discharged, with no recognition given to revenues accruing for services to patients not yet discharged. Patient service revenues at established rates using the discharge method amounted to $7,000,000 for 2018. According to GAAP, Palma should report patient service revenues for 2018 of a. either $8,000,000 or $7,000,000, at the option of the hospital. b. $8,000,000. c. $7,500,000. d. $7,000,000.

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