What Is the Appropriate Account to Credit When Estimating a Portion

question 38

Multiple Choice

What is the appropriate account to credit when estimating a portion of health care organization receivables that will prove to be uncollectible?

• A) Bad Debt Expense.
• B) Allowance for Uncollectible Accounts.
• C) Patient Service Revenues.
• D) Accounts Receivable.
• E) Contractual Adjustments.

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Definitions:

Fixed Period

A set length of time during which certain activities or events are scheduled to occur or conditions are meant to remain unchanged.

Expected Value

The anticipated value or mean of a random variable, representing the center of its distribution.

Portfolio

A selection of monetary assets, covering equities, fixed-income securities, commodity holdings, liquid assets, and assets nearing cash, containing mutual funds and Exchange-Traded Funds.

Stocks

Shares representing ownership interests in corporations, allowing investors to claim on businesses' assets and earnings.