Question 1

Define operating expenses and give examples of such expenses for a physician's office.

Accepted Answer

The answer of Define operating expenses and give examples of...

Question 2

Dr. Ray performs a limited examination of a patient with XYZ healthcare insurance. Dr. Ray knows that XYZ will pay $65 for that service. Why does the accounting entry in the Medical Services account list the standard fee of $90?

Accepted Answer

A)  To show a $25 loss for tax purposes 
B)  The accounting program will not allow different fees 
C)  To enable calculations of discounted fees 
D)  To enable Dr. Ray to bill the patient for the unpaid amount of $25

Question 3

Explain the roles of bookkeepers and accountants in a business.

Accepted Answer

The answer of Explain the roles of bookkeepers and accountants...

Question 4

A physician provides the same service to two patients with a charge of $80. One patient pays cash. The other patient has insurance coverage. Which is correct for a double entry system?

Accepted Answer

A)  Two debit postings of $80 in the Cash account 
B)  Two credit postings of $80 in the Medical Services account 
C)  Two debit postings of $80 in the Medical Services account 
D)  One credit posting of $80 in the Cash account

Question 5

The widely used double entry accounting system was invented over 500 years ago.

Accepted Answer

A) True 
 B)False

Exam 4: Basic Accounting Concepts

Define operating expenses and give examples of such expenses for a physician's office.

Dr. Ray performs a limited examination of a patient with XYZ healthcare insurance. Dr. Ray knows that XYZ will pay $65 for that service. Why does the accounting entry in the Medical Services account list the standard fee of $90?

Explain the roles of bookkeepers and accountants in a business.

A physician provides the same service to two patients with a charge of $80. One patient pays cash. The other patient has insurance coverage. Which is correct for a double entry system?

The widely used double entry accounting system was invented over 500 years ago.