The Codes Listed in the HCPCS Level II Code Book

question 4

Multiple Choice

The codes listed in the HCPCS Level II code book are all structured the same way:

• A) Three characters: two letters followed by one number
• B) Three letters
• C) Five characters: one letter followed by four numbers
• D) Two numbers

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Definitions:

Contra Account

A contra account is an account used in the general ledger to reduce the value of a related account when the two are netted together.

Accumulated Depreciation

The total amount of a company's asset value that has been allocated as depreciation expense since the asset was put into use.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thus preparing the books for the next period.

Income Summary

An account used in the closing process that summarizes revenues and expenses for a period, transferring the net amount to retained earnings.