What Is the Appropriate Account to Debit When Reducing Net

question 53

Multiple Choice

What is the appropriate account to debit when reducing net patient service revenue as a result of arrangements with third party payors?

• A) Contractual Adjustments.
• B) Allowance for uncollectible and reduced accounts.
• C) Patient Service Revenues.
• D) Account Receivable-Patients.
• E) Accounts Receivable-Third Party.

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Definitions:

Expectations

Beliefs or forecasts about what will happen in the future based on current knowledge or trends.

Revenue

The total income generated by a company from its normal business operations.

Society

A group of individuals involved in persistent social interaction, or a large social grouping sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Owners

Individuals or entities that have legal ownership and rights over property, assets, or businesses.