The transactions listed in the following questions occurred in a private, not-for-profit hospital during 20X8. For each transaction, indicate its effect on the hospital's statement of operations for the year ended December 31, 20X8.Transaction: Received tuition revenue from hospital nursing program and cash from sales of goods in the hospital gift shop.Effect on Statement of Operations:
A. The transaction is not reported on the statement of operations.
B. Increases operating income.
C. The transaction is reported on the statement of operations, but there is no effect on operating income.
D. Decreases operating income.
Answer: B
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