Accounting Module

Which of the following definitions best describes an aging report?

A record of all unpaid patient accounts, organized by date of service or date of first bill

Ideally, when should patient payments be received?

At the time of service

Why are insurance adjustments often necessary?

Because medical offices and insurance companies have contracts for reduced charges

Which of the following type(s) of check is guaranteed not to bounce?

Both a certified check and a money order

Which of the following best describes a purchase order?

A standardized form to request an order from a vendor

What is an event that affects the financial position of a company and can be reliably recorded?

Accounting transaction

What is the term for money owed to a company or office that has not yet been received?

Accounts receivable

From whom might a medical office receive income?

All of the above

Which of the following situations would make a check invalid?

All of the above

What is the name of a patient bill that records services and charges for a specific time period?

An invoice

Patients will receive a monthly bill from the medical practice even after the account has been turned over to a third-party collection agency.

False

The ending balance on the bank statement will always be the same as the current balance in the check ledger.

False

When stamped on a check, what does NSF stand for?

Non-sufficient funds

Who should be in charge of the petty cash fund?

One authorized person

Which of the following terms refers to the person who writes the check?

Payor

If a physician treats a fellow health care worker and does not collect the remaining fee after that worker's insurance contribution is received, this is what kind of adjustment?

Professional courtesy

Which of the following blank spaces on a check does NOT have to be filled in to be processed by the bank?

The for/memo line

In the medical office, who is responsible for helping patients understand their invoice?

The medical office assistant

Who can a medical office assistant speak to about a patient's unpaid bill?

The patient and the patient's guarantor

Which of these best describes a check endorsement?

The payee's signature on the back of the check

Who decides when and to whom professional courtesy is extended?

The physician

Why is it important to keep an up-to-date inventory of all administrative and clinical supplies in the office?

To avoid making unnecessary purchases or running out of important supplies

Patient payment information entered on the daysheet must also be posted on the patient ledger.

True

What should be done if a mistake is made while filling out a check?

Void the check and file it with cancelled checks.

How often should patients receive a billing statement?

Once per month

Which of the following definitions best describes a write-off?

A cancellation of a fee

To place money into a bank account is to make ____.

A deposit

Which of the following best describes the term "professional courtesy"?

A fee discount for health care workers

To which of the following patients might a physician extend professional courtesy?

A fellow physician

Which of the following is the least confrontational way to approach a patient about an unpaid bill?

A letter

What is a fee schedule?

A list of specified fees a physician charges for services

Which of the following definitions best describes the term "guarantor"?

A person responsible for paying a patient's bill

It is okay to complete a check in pencil as long as it is dark enough to read.

False

What is the first thing an assistant should do after receiving a patient overpayment?

Call to inform the patient.

Ideally, how often should money received by the office be deposited?

Daily

Which of the following is another term for "superbill"?

Encounter form

Why is the pegboard system also called the "write-it-once" method?

Entries are posted to several records at once.

When should a receipt be issued to a patient?

Every time the patient makes a payment in the office

If an office uses a computerized bookkeeping system, understanding manual bookkeeping is unnecessary.

False

In an office with a computerized practice-management system, patient invoices still must be written out by hand.

False

It is acceptable to send personal information to patients by e-mail.

False

When a patient makes a payment, what kind of accounting transaction is this for the medical office?

Income

What purpose does the Truth in Lending Act serve?

It requires physicians to disclose interest charges if any are charged.

What must assistants do before accepting a check from a new patient?

Make sure the patient's identification matches the information on the check.

Which of the following attitudes is most acceptable for an assistant to have when discussing finances with a patient?

Respectful and understanding

Which of the following is the best option for dealing with long-term delinquent accounts?

Send the account to a third-party collection agency.

Which of the following would be considered an accounting task?

Sending patient bills

Why is it necessary to reconcile the bank statement with the office check ledger?

To ensure the accuracy of both documents INCORRECT

What is the purpose of the HIPAA Privacy Rule?

To protect the privacy of patient information

A check stub, or register, should be filled out every time a check is written.

True

Cash and checks received from patients as payment should be kept in the same place.

True