Which of the following statements is generally true about the basis of accounting used by governmental and not-for-profit hospitals?
a. both use the full accrual basis of accounting
b. both use the modified accrual basis of accounting
c. governmental hospitals use the modified accrual basis of accounting and not-for-profit hospitals use the full accrual basis of accounting
d. both use the full accrual basis of accounting; but governmental hospitals also prepare a second modified accrual basis operating statement
Question 2
The period of time that an asset is expected to help produce revenues is called its ___________________ _.
Fill in the blank(s) with correct word
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