Which of the following represents a negative number on a patient's account and indicates an overpayment has been made?
A. Credit balance
B. Balance due
C. Routing number
D. Debit
Answer (2)
The correct answer is A. A credit balance represents a negative number on a patient's account, indicating that an overpayment has been made. This means there is extra money on the account that can be refunded or used for future services.
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The correct answer is (A) Credit balance.
In the context of a patient's account, the term 'credit balance' typically represents a negative number, indicating that an overpayment has been made. Here's a breakdown of the options provided:
Credit Balance : This occurs when a patient has paid more than what was due for their medical services or treatments. The account reflects a negative balance, meaning there's money that can either be refunded to the patient or applied toward future charges.
Balance Due : This indicates the amount of money the patient still needs to pay to settle their account. It is a positive number, opposite of a credit balance.
Routing Number : This refers to a nine-digit code used to identify a financial institution in a monetary transaction (such as in checks for bank accounts). It does not relate to account balances.
Debit : In financial terms, a debit is an entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet, or it can also mean a withdrawal from a bank account. In this context, however, it doesn't indicate an overpayment on an account.
Understanding credit balances is important in business and healthcare finance since it allows for accurate tracking of transactions and ensures patients or clients are appropriately reimbursed when they've overpaid.
