If a Physician Decides Not to Extend Credit to a Patient

question 59

Multiple Choice

If a physician decides not to extend credit to a patient, what must be done according to the Fair Credit Reporting Act?

• A) Call the patient and tell him his bill must be paid in full immediately
• B) Inform the patient in writing why credit was denied
• C) Explain to the patient that you will be unable to extend credit
• D) Avoid discussing the issue of credit with the patient to avoid embarrassment
• E) Report the patient's lack of creditworthiness to the state's credit monitoring service

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Definitions:

Finished Goods Account

An account representing the total value of all completed products available for sale at the end of an accounting period.

Factory Overhead Ledger

A specific ledger that tracks all indirect costs associated with manufacturing operations, such as utilities, rent, and maintenance expenses for factory equipment.

Job Order Costing

A cost accounting system that accumulates costs according to individual jobs or orders, suitable for customized orders.

Process Cost System

An accounting system used to apply costs to similar products that are mass produced in a continuous fashion.