The General Fund of Caldwell Had the Following Operating Budget

question 32

Multiple Choice

The general fund of Caldwell had the following operating budget for the fiscal year beginning July 1,2009: When the general fund records its operating budget on July 1,2009,Budgetary Fund Balance-Unreserved should be

• A)credited for $600,000.
• B)debited for $900,000.
• C)debited for $600,000.
• D)credited for $900,000.

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Definitions:

Predetermination

The act of deciding or establishing something in advance, often before relevant data or events are known.

Preauthorization

Prior approval of insurance coverage and necessity of procedure; refers to obtaining plan approval for services prior to the patient receiving them; relates not only to whether the services are covered but also whether the proposed treatment is medically necessary.

Medically Necessary

A term used to describe treatments, services, or supplies needed to diagnose or treat a medical condition, determined by healthcare providers.

Indemnity-Type Insurance

A form of insurance where the insurer compensates the insured for losses in exchange for premiums paid, without providing the service directly.