Certified Medical Administrative Assistants (CMAA) Practice Exam 2025 - Free CMAA Practice Questions and Study Guide

The correct term for an amount that is written off and not collected is known as a write-off. A write-off occurs when a practice determines that a certain debt, such as an unpaid bill, is unlikely to be collected. This can happen due to various reasons, such as a patient failing to pay their balance after repeated attempts to collect or the realization that the cost exceeds the benefit of pursuing collection efforts.

The term "write-off" accurately describes this accounting action, reflecting the reduction of the amount of receivables on financial statements. It signifies that the healthcare provider acknowledges the debt won't be recovered and thus removes it from their accounts.

In contrast, profit margin refers to the percentage of revenue that exceeds the costs of goods sold, adjustments typically involve changes made to billing or charges for various reasons, and losses generally refer to overall deficits in profit or financial position, rather than specifically addressing uncollectible debts. Understanding these distinctions is vital for effectively managing a medical office's finances.