Which type of accounting is primarily concerned with tracking and reporting the specific amount of money that an individual must pay when insurance only covers a portion of costs?

• A. Managerial Accounting
• B. Cost Accounting
• C. Health Care Accounting
• D. Financial Accounting

Answer: (C)

Verified step by step guidance

1. Understand the context of the question: The problem is asking about a type of accounting that deals with tracking and reporting the specific amount of money an individual must pay when insurance only covers a portion of costs.
2. Recognize that this scenario is specific to the health care industry, where accounting practices are tailored to track patient payments, insurance reimbursements, and out-of-pocket costs.
3. Clarify the role of Health Care Accounting: It is a specialized branch of accounting focused on managing financial transactions related to health care services, including patient billing, insurance claims, and cost-sharing arrangements.
4. Differentiate Health Care Accounting from other types of accounting mentioned: Managerial Accounting focuses on internal decision-making, Cost Accounting deals with cost analysis for production or services, and Financial Accounting focuses on preparing financial statements for external stakeholders.
5. Conclude that Health Care Accounting is the correct answer because it directly addresses the financial tracking and reporting needs in situations where insurance only partially covers costs.