Which of the Following Is True Regarding Revenue Recognition for Health

question 59

Multiple Choice

Which of the following is true regarding revenue recognition for health care organizations?

• A) Patient service revenue includes an imputed charge for charity care.
• B) Patient service revenue is reported net of contractual adjustments.
• C) Both a and b above.
• D) Neither a nor b above.

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Definitions:

List Price

The price quoted by a supplier of a product before any trade discounts.

Net Price

The price paid after the deduction of trade discounts.

Notation

A system of symbols used to represent information, often used in financial documents to denote specific types of transactions or accounts.

Invoice

A document issued by a seller to a buyer that specifies the products or services provided and the amount owed.