A Company That Provides Data Processing and Claims Processing Services

question 92

Multiple Choice

A company that provides data processing and claims processing services to physician's offices is a(n) :

• A) billing service.
• B) independent auditing firm.
• C) clearinghouse.
• D) third-party administrator.

---

Definitions:

Trade Receivables

Sums due to a business from its clients that stem from selling products or services on account.

Exchange Notes

Financial instruments representing an agreement between parties to exchange interest payments or currency values over a set period.

Direct Write-off

An accounting method where uncollectible accounts receivable are written off directly against income at the time they are deemed irrecoverable.

Net Realizable Value

The estimated selling price of an item of inventory less any direct costs of disposal, such as sales commissions.