Medical Coding Practice Test

In medical billing, "A/R" stands for Accounts Receivable. This term is crucial in the financial management of healthcare practices, as it refers to the outstanding invoices or money owed to the practice for services rendered. Essentially, it represents the amounts that are yet to be collected from patients and insurers for healthcare services provided.

An effective management of Accounts Receivable is vital for maintaining cash flow and ensuring the financial health of a medical practice. It includes tracking unpaid bills, sending reminders to payers for overdue amounts, and managing collections.

Understanding this concept is essential for medical coders and billers, as it helps them navigate the billing process effectively and ensure that healthcare providers receive proper compensation for their services. The other options do not accurately describe this essential financial term in the context of medical billing, as they do not align with the practices and language used in the industry.