Multiple Choice
Which of the following best explains why a savings account is considered more liquid than a certificate of deposit (CD)?
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7. Receivables and Investments
Types of Receivables
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Which of the following terms refers to monies owed to a patient from the provider?
A
Notes Receivable
B
Accounts Payable to Patient
C
Accounts Receivable
D
Accounts Payable
Verified step by step guidance1
Step 1: Understand the key terms in the question. 'Monies owed to a patient from the provider' refers to an obligation where the provider owes money to the patient. This is a liability for the provider.
Step 2: Review the definitions of the options provided:
- Notes Receivable: This refers to amounts owed to the company by others, typically documented in a formal promissory note.
- Accounts Payable: This refers to amounts the company owes to suppliers or creditors for goods or services received.
- Accounts Receivable: This refers to amounts owed to the company by customers for goods or services provided.
- Accounts Payable to Patient: This would refer to amounts owed by the provider to the patient, which aligns with the question.
Step 3: Eliminate options that do not match the context of the question. For example, 'Notes Receivable' and 'Accounts Receivable' involve amounts owed to the provider, not the patient.
Step 4: Focus on the remaining options. 'Accounts Payable' generally refers to amounts owed to suppliers or creditors, but 'Accounts Payable to Patient' specifically refers to amounts owed to the patient, which matches the question's description.
Step 5: Conclude that the correct term is 'Accounts Payable to Patient,' as it directly refers to monies owed to a patient from the provider.
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