In medical billing, what term describes the money a practice expects to collect from patients and payers for services performed but not yet paid?

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Multiple Choice

In medical billing, what term describes the money a practice expects to collect from patients and payers for services performed but not yet paid?

Accounts receivable is the money a practice expects to collect from patients and payers for services performed but not yet paid. It sits on the balance sheet as a current asset because it represents future cash coming in. This amount grows after services are provided and claims are filed, and it’s reduced only when payments are received or when the balance is written off. This is different from accounts payable, which are amounts the practice owes to others, and from revenue, which is the income recognized when services are rendered regardless of whether payment has been collected. An aging AR report helps track how long these amounts have been outstanding and guides follow-up efforts.

Accounts receivable is the money a practice expects to collect from patients and payers for services performed but not yet paid. It sits on the balance sheet as a current asset because it represents future cash coming in. This amount grows after services are provided and claims are filed, and it’s reduced only when payments are received or when the balance is written off. This is different from accounts payable, which are amounts the practice owes to others, and from revenue, which is the income recognized when services are rendered regardless of whether payment has been collected. An aging AR report helps track how long these amounts have been outstanding and guides follow-up efforts.

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