Question

multiple choice question

accounts receivable is considered ______.

• money that is refunded to patients
• monies owed to a medical practice used to run the practice
• money in a petty cash fund
• money that is owed from the practice to other entities

Explanation:

Define accounts receivable in healthcare

Using the Medical Billing Revenue Cycle and Practice Management Program knowledge points

Accounts receivable (A/R) represents the outstanding money owed to a medical practice by patients and third-party payers for services already rendered. This revenue is essential for covering operational costs and running the practice.

Evaluate the given options

• money that is refunded to patients: This describes patient refunds (credit balances), which are liabilities, not receivables.
• monies owed to a medical practice used to run the practice: This matches the definition of accounts receivable, representing incoming funds owed to the practice.
• money in a petty cash fund: This is a small amount of physical cash kept on hand for minor expenses, not an outstanding receivable.
• money that is owed from the practice to other entities: This describes accounts payable (A/P), which are liabilities.

Answer:

• money that is refunded to patients
• monies owed to a medical practice used to run the practice (Correct answer)
• money in a petty cash fund
• money that is owed from the practice to other entities