Question

What is the definition of accounts receivable? What are some primary reasons patients are sometimes not billed in a timely manner?

Answer 1

Ans) Accounts receivable is the amount owed to a company resulting from the company providing goods and/or services on credit.

- The unpaid balance in this account is reported as part of the current assets listed on the company's balance sheet.

- Accounts receivable (AR) are amounts owed by customers for goods and services a company allowed the customer to purchase on credit.

- Instead, they might have, for example, a 30 or 60-day period before they're required to pay the invoice for those goods or services.

- Account receivable is money due to organization from patients and third parties for services that the organization has already provided. Revenue cycle is a multidisciplinary approach to reducing the amount in account receivable by effectively managing the production and payment cycle.