A Disadvantage of Standard Measures of Liquidity Is That the Measures

question 73

Multiple Choice

A disadvantage of standard measures of liquidity is that the measures:

• A)Ignore a firm's reserve borrowing capacity
• B)Fail to include accounts receivable as an asset
• C)Give inventories equal weighting in the quick ratio.
• D)Do not include the current portions of long-term debt

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Definitions:

Precertification

Refers to obtaining plan approval for services prior to the patient receiving them; refers to seeking approval for a treatment (surgery, hospitalization, diagnostic test) under the patient’s insurance contract.

Specified Outpatient

Specified Outpatient refers to particular outpatient medical treatments or procedures that are predefined under a health plan or policy for coverage or reimbursement.

Coordination of Benefits (COB)

A process in health insurance to determine the order of responsibility when a person is covered by more than one insurance plan, to avoid overlapping payments.

Duplication of Payment

An error or fraud resulting in the repeated payment for a single invoice or service.