What must be authorized for accounts receivable that are direct bills?

In the context of accounts receivable that are direct bills, the emphasis is on the timeline for which charges can be billed and collected. The correct answer, which refers to a 90-day period, indicates that direct bills typically need to be authorized for services offered within a specific time frame before billing them to ensure that they are compliant with the billing policies and practices.

This 90-day authorization period is standard in many billing practices, where services rendered need to be billed within this time to maintain proper cash flow, ensure customer account accuracy, and comply with industry regulations. If services are rendered outside of this period, it may complicate the billing process and potentially lead to denied claims or payment issues.

Other options, while relevant to different aspects of the billing and accounts receivable process, focus on specific parts of the total process. For example, payment plans may pertain to how a customer chooses to pay, insurance verification ensures eligibility for coverage, and rental agreements relate to the terms under which services or products are rented. None of these options specifically addresses the timeframe for billing authorization as effectively as the 90-day requirement does.