To Code an Evaluation and Management (E/M) Service Properly for a New

question 12

Multiple Choice

To code an evaluation and management (E/M) service properly for a new patient, which of the following elements must be documented?

• A)History and examination
• B)History and medical decision making
• C)Examination only
• D)History, examination, and medical decision making

Record journal entries for estimating, adjusting, and writing off uncollectible accounts receivable.

Understand the impact of the allowance method on financial statements.

Differentiate between the allowance method and the direct write-off method.

Record and understand the implications of collecting an account previously written off.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent ones, facilitating the start of a new accounting period.

Accounting Period

A specific period of time for which financial statements are prepared, often a year or a quarter.

Ledger Accounts

Detailed financial records maintained within the ledger, tracking transactions related to specific assets, liabilities, equity, income, and expenses.

Dividends Account

An account that records the dividends declared by a corporation to be distributed to its shareholders.