Question

Payments due from patients, payers, or other guarantors that are owed to the practice for services rendered are considered:

a) Accounts payable
b) Accounts receivable
c) Prepaid expenses
d) Operating income

Answer 1

Payments due from patients, payers, or other guarantors that are owed to the practice for services rendered are considered accounts receivable.

Step-by-step explanation:

Payments due from patients, payers, or other guarantors that are owed to the practice for services rendered are considered accounts receivable.

Accounts receivable represents the amount of money owed to a business by its customers or clients. In this case, it refers to the payments that the practice is yet to receive from patients, payers, or other guarantors for the medical services they have provided.

For example, if a patient receives treatment at the medical practice, they will have a balance due for the services rendered. This balance represents an accounts receivable for the practice until the payment is received.