Which of the following types of revenue is specifically noted as 'other' operating revenue for health care entities?

Master the Becker CPA FAR Exam with flashcards and multiple choice questions. Each question is accompanied by hints and detailed explanations to aid your study. Get ready to ace your exam!

The type of revenue recognized as 'other' operating revenue for health care entities often includes income from sources that are not central to the entity's primary operations. In this context, tuition from educational programs fits this description well.

Health care organizations often engage in educational activities and training programs, which can generate tuition revenue. This kind of revenue is considered operating income because it results from activities directly associated with the entity's overall mission to provide health care and improve public health. Recognizing tuition as 'other' operating revenue allows health care entities to reflect the diversity of their income streams while still acknowledging that this revenue originates from their support functions.

Other types of revenue mentioned, such as revenue from government contracts or sales of medical equipment, typically fall under standard operating revenue categories essential to the core health care services provided. Interest income from investments, while it may contribute to overall income, is classified as non-operating revenue and does not relate directly to the organization's operational mission. Thus, tuition stands out as a specific example of 'other' operating revenue in this context.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy