Accounts Receivable represents what?

• A. Revenue from services
• B. Cash on hand
• C. Money owed to the hospital by patients or insurers
• D. Money the hospital owes to suppliers

Answer: (C)

Accounts receivable is the money the hospital is owed for services already provided and billed to patients or insurers. It’s an asset because it will turn into cash when those bills are paid. Revenue is the income recognized from delivering services, which can occur before or after payment, but AR specifically tracks amounts still waiting to be collected. Cash on hand is the actual cash the hospital currently has. Money owed to suppliers is accounts payable, a liability. So, accounts receivable represents the.pending payments from patients and insurers for services rendered.