The Use of Standard Transaction Formats and Code Sets Is

question 43

True/False

The use of standard transaction formats and code sets is required by CMS (formerly HCFA)for electronically transmitted health information from providers,health plans,and healthcare clearinghouses.

---

Definitions:

Allowance Method

The Allowance Method is an accounting technique used to estimate and account for potential uncollectible accounts receivable, offering a more accurate reflection of the realizable value of receivables.

Bad Debts Expense

An expense account representing the estimated amount of receivables that a company does not expect to collect.

Depreciating

The process of allocating the cost of a tangible asset over its useful life, reflecting a decrease in its value over time.

Accounts Receivable

Amounts owed to a business by customers for goods or services delivered but not yet paid for, represented as a current asset on the balance sheet.