The Maximum Amount of Money Third-Party Payers Will Pay for a Specific

question 1

Multiple Choice

The maximum amount of money third-party payers will pay for a specific procedure or service is called the:

• A)benefit
• B)allowed charge
• C)allowed service
• D)incurred amount

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Definitions:

Drawee

In financial terms, this is the entity upon which a cheque or draft is drawn and is responsible for paying the amount.

Financial Statement

A summarized record that shows the financial health of a business or individual, including components like balance sheets, income statements, and cash flow statements.

Normal Balance

The side (debit or credit) of an account that is typically increased, indicating whether an account increases on the left side (debit) or right side (credit).

Permanent/Temporary

Categories of accounts in accounting, where permanent accounts carry their end-of-period balances into the next period, and temporary accounts are closed.