In which case was the main accounting issue how to account for contractual allowance?
A)AOL
B)Family Games
C)ZZZZ Best
D)HealthSouth

Question

Quizplus · Accepted Answer

HealthSouth's main accounting issue was how to account for contractual allowances, which were discounts negotiated with insurance providers for medical services. The company was inflating its earnings by recording revenue from these allowances as though they were actual medical services provided, rather than as a reduction of revenue.

In Which Case Was the Main Accounting Issue How to Account