Which of the Following Is True About Prepaid Plans

question 3

Multiple Choice

Which of the following is true about prepaid plans?

• A) Fees are negotiated at time of service.
• B) Providers are paid before rather than after services are performed.
• C) Preauthorization is required.
• D) Providers are paid after rather than before services are performed.

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Definitions:

Investing Activities

Financial transactions and events related to acquiring or disposing of investments and long-term assets.

Bonds Payable

A long-term liability representing the amount owed by an entity to bondholders, to be repaid at the bond's maturity date.

Cash Sale

A cash sale occurs when a customer pays for goods or services immediately at the time of purchase, usually with cash, check, or electronic methods.

IFRS

International Financial Reporting Standards are a set of accounting standards developed by the International Accounting Standards Board (IASB) that are becoming the global standard for the preparation of public company financial statements.