Which of the Following Is Not a Form of Debt

question 15

Multiple Choice

Which of the following is not a form of debt used by health care organizations?

• A) Bonds
• B) Leases
• C) Lines of credit
• D) Discounts on patient accounts

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Liability Reported

The recording of an obligation or debt that a company owes to outside parties in the financial statements.

Balance Sheet

A financial record that lists a corporation's assets, obligations, and the equity held by shareholders at a particular time.

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment.