When Processing a Credit Balance,if a Refund Is Due to a Patient,you

question 19

Multiple Choice

When processing a credit balance,if a refund is due to a patient,you must:

• A) apply the funds as a credit toward future services
• B) verify that you have the patient's current address
• C) deduct a small processing fee (usually no more than 5 percent)
• D) send the check to the patient's insurance company

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Definitions:

Payback Method

Payback Method is a capital budgeting technique that calculates the time required for an investment to generate cash flows sufficient to recover the initial investment cost.

Investments

Assets or items acquired with the intention of generating income or appreciation over time, including stocks, bonds, real estate, or other vehicles.

Liquidity

The simplicity of turning an asset into cash without impacting its market value.

Terminal Value

An estimate of a project's or company's value at the end of a forecast period, extending beyond the period of explicit cash flow projections.