Which of the Following Terms Best Defines the National Committee

question 17

Multiple Choice

Which of the following terms best defines the National Committee for Quality Assurance (NCQA) ?

• A) Federally funded
• B) Private, not for profit
• C) Proprietary
• D) Community based

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Definitions:

Contra Asset

An account on a company's balance sheet that reduces the total amount of an asset, such as accumulated depreciation.

Normal Balance

In accounting, the normal balance is the side (debit or credit) of an account that is usually increased. For example, asset accounts normally have a debit balance, while liabilities and equity accounts have a credit balance.

Direct Write-off Method

A method of accounting for bad debts that involves charging the amount of an uncollectible account directly to the expense account when it is deemed non-recoverable.

Uncollectible Receivables

Debts owed to a company that are considered to be uncollectable and are written off as a loss.