Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following is a main method used by payers to compensate providers in accounting?

Equity method

Straight-line depreciation

LIFO inventory method

Fee-for-service

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Verified step by step guidance

Understand the context of the question: The problem is asking about methods used by payers to compensate providers in accounting, which relates to healthcare or service industries where payment models are applied.

Clarify the incorrect options: The 'Equity method' is used in accounting for investments in other companies, 'Straight-line depreciation' is a method for allocating the cost of an asset over its useful life, and 'LIFO inventory method' is an inventory valuation method. None of these are related to compensating providers.

Introduce the correct concept: 'Fee-for-service' is a payment model where providers are compensated based on the services they perform. This is a common method in healthcare accounting and involves billing for each service rendered.

Explain why 'Fee-for-service' is correct: This method directly ties payment to the quantity and type of services provided, making it distinct from the other accounting methods listed, which are unrelated to provider compensation.

Summarize the key takeaway: In accounting for provider compensation, 'Fee-for-service' is a main method because it aligns payment with the services delivered, unlike the other options which pertain to different areas of accounting.