In Accounting for Health Care Entities,the Provision for Bad Debt

question 43

True/False

In accounting for health care entities,the provision for bad debt should always be recorded as a revenue deduction,rather than as an expense.

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Definitions:

Pre-existing Duty

A rule in contract law that states if someone is already legally obligated to perform a certain duty, promising to perform that same duty does not constitute a valid consideration for a new contract.

Employer

A person or organization that hires people to work for wages or salary.

Endangerment

The act of putting someone or something at risk or in danger of being harmed or destroyed.

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