If the Direct Write-Off Method Is Used to Account for Uncollectible

question 167

Multiple Choice

If the direct write-off method is used to account for uncollectible accounts,which of the following statements is false?

• A)An allowance account is not used.
• B)No adjustment is made at the end of the year to estimate future uncollectible accounts.
• C)Accounts receivable will be reported at their net realizable value.

Recognize the importance of providing a detailed account of the event, including patient factors prior to the event.

Understand the significance of indicating the location and category of the event.

Learn how to complete the review and corrective action sections of the incident report.

Acquire the ability to add any additional relevant information, including the impact of the event on patient care.

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Definitions:

Franchising

A method of business expansion where a franchisor licenses its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee.

Business Models

Frameworks or plans that outline how a company creates, delivers, and captures value in economic, social, cultural, or other contexts.

Geographical Location

The specific, physical place where something exists, defined by its latitude and longitude or its place in a larger area.

Sole Proprietorships

A business structure where a single individual owns and runs the business, bearing sole responsibility for its debts and liabilities.