The Fear of Lawsuits May Prompt Doctors to Order Additional

question 11

Multiple Choice

The fear of lawsuits may prompt doctors to order additional tests and procedures just to protect themselves-a strategy called

• A)defensive medicine.
• B)counter litigation.
• C)malpractice.
• D)preventative medicine.

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Definitions:

Allowance Account

An accounting reserve established to adjust the carrying value of accounts receivable to their net realizable value, recognizing potential losses from uncollectible accounts.

Written Off Accounts

Accounts receivable that a company deems uncollectible and removes from its books.

Bad Debt Expense

The portion of accounts receivable that is estimated to be uncollectible and is recognized as an expense in the financial statements.

Credit Sales

Transactions where goods are sold and payment is deferred, typically allowing the customer to pay at a later date without interest.