The ADA Principles of Ethics and Code of Professional Conduct

question 8

Multiple Choice

The ADA Principles of Ethics and Code of Professional Conduct encompass five principles.Principle 3 is Beneficence,which means that the dentist has a duty to:

• A)respect the patient's right to self-determination and confidentiality.
• B)refrain from harming the patient.
• C)promote the patient's welfare.
• D)communicate truthfully.

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Definitions:

Percentage-of-Receivables Basis

A method used to estimate the amount of bad debt expense by applying a fixed percentage to the total amount of accounts receivable.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that may not be collectible.

Bad Debt Expense

An expense reported on the income statement, representing the amount of non-collectible accounts receivable during a period.

Direct Write-off Method

An accounting method where bad debts are expensed only when they are deemed uncollectible.