Since the Purchasers of Health Care Services Cannot Easily Determine

question 150

Multiple Choice

Since the purchasers of health care services cannot easily determine the quality of the services,purchasers may assume that

• A) all services have the same high quality.
• B) high prices are an indicator of high quality.
• C) all services have the same low quality.
• D) low prices are an indicator of high quality.
• E) prices and quality are completely unrelated.

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Definitions:

Journal Entry

A basic record documenting a business transaction in an accounting system, used to transfer information to financial statements.

Bank Balance

The amount of money held in a bank account at a particular time, as recorded by the bank.

NSF Check

Stands for Non-Sufficient Funds Check, a check that cannot be processed due to insufficient funds in the account it was drawn on.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.