One of the Accounting Concepts Upon Which Adjustments for Prepayments

question 15

Multiple Choice

One of the accounting concepts upon which adjustments for prepayments and accruals are based is:

• A)expense recognition.
• B)cost.
• C)monetary unit.
• D)economic entity.

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Definitions:

Health Maintenance Organizations

Managed care organizations that provide a wide range of healthcare services to enrolled members for a fixed, prepaid fee.

Diagnosis-Related Group

A system of classification for hospital cases used to determine payment levels for healthcare services based on the diagnosis, type of treatment, and other factors.

Fixed Payment

Regular, set amounts of money paid or received at specified intervals, such as monthly rent or car loan payments.

Outpatient Basis

Medical treatment or procedures that do not require an overnight stay in a hospital or medical facility.