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IIA

IIA-CFSA · Question #266

Hospitals document reserves as that portion of the accounts receivables that they hope to collect but have some doubt about its collectability. Rather than book these amounts as income, hospitals…

The correct answer is B. Reserve. See the full explanation below for the reasoning.

Question

Hospitals document reserves as that portion of the accounts receivables that they hope to collect but have some doubt about its collectability. Rather than book these amounts as income, hospitals will “____________” These amounts until paid.

Options

  • ABad debts
  • BReserve
  • CIncome expense
  • DAll (Allowance for loans and lease losses)

How the community answered

(53 responses)
  • A
    8% (4)
  • B
    72% (38)
  • C
    17% (9)
  • D
    4% (2)

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