ABC Insurance Has Requested a Copy of Sally Smith's Inpatient

question 21

Multiple Choice

ABC Insurance has requested a copy of Sally Smith's inpatient record to reconcile the documentation in the record with a claim submitted by Sunny View Hospital for $200.00 of laboratory services and $325.00 of radiology services. Upon review of the record, ABC Insurance has determined that the laboratory report does not contain documentation for a laboratory test billed at $50.00. ABC Insurance Company would deny payment for

• A) all of the charges.
• B) $50.00.
• C) $200.00.
• D) $325.00.

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Definitions:

Credits

An accounting entry that increases liabilities or equity or decreases assets on a company's balance sheet.

Debits

Debits are accounting entries that increase asset or expense accounts, or decrease liability, equity, or revenue accounts, typically noted on the left side of accounting ledgers.

Dividends Account

An account used to record the payment of dividends, which are distributions of a corporation's earnings to its shareholders.

Expense

Costs incurred in the process of earning revenue, typically including cost of goods sold, selling, general, and administrative expenses.