Mike Is Receiving Services from a State Medicaid Program

question 7

Multiple Choice

Mike is receiving services from a state Medicaid program. He will receive all of the following except:

• A) physician services.
• B) housecleaning services.
• C) vaccines for children.
• D) nurse/midwife services.

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Definitions:

Prepaid Expense

Expenses paid in advance and recorded as assets until they are used or consumed.

Periodicity Assumption

An accounting principle that divides the ongoing activities of a business into set periods of time, such as months or years, to produce financial statements for those periods.

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditure to the period they actually belong.

Service-Type Business

A service-type business is an entity that provides intangible products or services to customers, rather than physical goods.