Which of the Following Is True About Health Care

question 21

Multiple Choice

Which of the following is true about health care?

• A) The growth of third-party payments during the last several decades has helped control inflation in the health-care sector.
• B) Public policy encourages Americans to purchase low deductible/low co-payment health insurance coverage through their employers.
• C) Low deductible health insurance coverage encourages health-care consumers to search for the best prices.
• D) The 2.9 percent Medicare payroll tax is sufficient to cover the cost of the promised future health-care services to senior citizens.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's accounts receivable that may not be collectible.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated portion of accounts receivable that may not be collectible.

Uncollectible Receivables

Amounts due from customers that are considered unlikely to be collected and are written off as a loss.

Bad Debt Expense

The expenses linked to the accounts receivable that a business cannot recover.