Medicare Is an Example of Which of the Following Payment

question 14

Multiple Choice

Medicare is an example of which of the following payment systems?

• A) Prospective payment system
• B) Patient-driven payment system
• C) Market-driven payment system
• D) Retrospective payment system

---

Definitions:

Effective Interest Method

A technique used in accounting to allocate the interest expense or income of a financial instrument over its lifespan in a way that results in a constant rate on the carrying amount.

Bonds Payable

Long-term liabilities representing a company's commitment to pay a specified amount of money at certain future dates for funds borrowed.

Interest Expense

The expense an entity faces for using borrowed capital, recorded as a non-operating cost on the income statement.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period, reflecting its financial performance.