The money owed to the doctor from a patient after the insurance has paid is known as which account?

• A. Accounts payable
• B. Accounts receivable
• C. Revenue
• D. Expenses

Answer: (B)

The key idea is how money owed to the practice is classified. When services are provided, revenue is earned, but if payment hasn’t been received yet, the amount due from patients (or their insurers) is recorded as an asset called accounts receivable. Even after the insurer pays its portion, any remaining patient balance remains as accounts receivable until it’s paid. This distinguishes it from accounts payable (money the practice owes to others), revenue (the income recognized from services), and expenses (the costs of running the practice). So, the money owed to the doctor by the patient after insurance has paid is accounts receivable, a current asset on the balance sheet.