For Government-Wide Financial Statements, What Account Is Credited When a Piece

question 9

Multiple Choice

For government-wide financial statements, what account is credited when a piece of equipment is leased on a capital lease?

• A) Equipment-Capital Lease
• B) Encumbrances-Long Term
• C) Encumbrances-Lease Obligations
• D) Capital Lease Obligation
• E) The lease is not recorded.

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Definitions:

Elective Procedure

A medical procedure that is not required to sustain life but is requested for payment to the third-party payer by the patient or physician. Some elective procedures are paid for by third-party payers, whereas others are not.

Predetermination

The act of deciding or establishing something in advance or having a predetermined outcome.

Third-party Payer

An entity (other than the patient or healthcare provider) responsible for paying medical expenses, such as insurance companies.

Medical Billing Programs

Software or systems designed to manage healthcare billing processes, including the submission and tracking of medical claims.