A physician chooses to create different revenue accounts for physical examinations, office visits, and office surgical procedures. What advantage does this have over creating a combined revenue account for all medical services?
A) Easier to make revenue accounting entries
B) Provides a simpler chart of accounts
C) Easier to see which type of service is generating the most revenues
D) Provides a simpler line item control

Question

Quizplus · Accepted Answer

Creating separate revenue accounts for different types of services, such as physical examinations, office visits, and office surgical procedures, allows for more detailed tracking and analysis of revenue sources. This granularity enables the physician to easily identify which services are generating the most revenue, facilitating more informed decision-making regarding resource allocation, pricing strategies, and service offerings.

A Physician Chooses to Create Different Revenue Accounts for Physical