Contractual Adjustments That Arise from Differences Between the Gross Charge

question 16

Multiple Choice

Contractual adjustments that arise from differences between the gross charge for patient services and the amount paid by a third party payor are reported as:

• A) Deductions from gross patient revenue in arriving at net patient revenue.
• B) Disclosures in the notes to the financial statements.
• C) Either deductions from gross patient revenue or disclosure in the notes, depending on the dollar amount of the adjustments relative to billings.
• D) Bad debt expense.

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Definitions:

Salesperson's Response

Refers to how a salesperson reacts or replies to customer inquiries or objections during the selling process.

Qualifying Process

The method of assessing potential customers to determine if they have the need, authority, and financial capacity to purchase a product or service.

Money

A medium of exchange in the form of coins and banknotes; used to facilitate transactions for goods and services.

Selling Process

The series of steps taken by a salesperson from identifying a potential buyer to closing a sale.