M.A. Ch 46

In bookkeeping, what is an example of a credit?

A patient is given a discount for paying in full at the time of the visit

What amount of money is left in the cash drawer at the end of the day?

A set amount used daily to provide change for patients who pay cash

A patient presents a debit card to pay a copayment and asks for $25.00 cash back. What should the medical assistant say or do?

Accept the card for payment and tell the patient where an ATM is located

Which practice should the medical office avoid when accepting checks from patients?

Accepting the patient's paycheck after the patient has endorsed it to the office

What term is used to describe the bills that the practice has for office rent, equipment rental, and salaries?

Accounts payable

Which account keeps a record of cash disbursements?

Accounts payable

What is the term used to describe money that is owed to the medical office?

Accounts receivable

Which of the following is a reason the bank statement may not agree with the office record for a checking account?

All the outstanding checks have cleared the bank

Where is the MICR line located on a check?

Along the bottom of the check

When reconciling a bank statement, which amount must be added to the office checkbook register before comparing the amount in the check register to the bank statement?

Any interest earned

Which equation is the correct accounting principle?

Assets = Liabilities + Owner's Equity

When is income calculated in the cash basis of accounting?

At the time patient's bill is paid

Which codes are necessary in order to submit insurance claims?

Both diagnosis and procedure codes

Which type of check should the medical assistant accept from a patient?

Check for outstanding amount

Which of the following is an example of a debit adjustment (increases the amount the patient owes)?

Check returned by the bank for Not Sufficient Funds

How do money market accounts compare with checking accounts?

Checks must usually be written for a higher minimum amount

At what interval are charges and payments usually posted to patient accounts?

Daily

How often does the medical office usually make a bank deposit?

Daily

In which type of bookkeeping system is every transaction posted into two different records, once as a credit and one as a debit?

Double-entry bookkeeping system

Genuine postal money orders contain a watermark that shows a picture of George Washington when held to the light.

False

The account balance provided by the bank should always agree with the account balance of the medical office checkbook ledger.

False

Which statement best describes the petty cash account?

It is used for incidental items that are usually not very expensive

What does it mean to close the day (close out the day)?

No further accounts receivable transactions can be made using that date

A large check has to be written out for a piece of expensive equipment. The company selling the equipment to the practice wants to make sure that the check will clear the bank. How can the office pay for the equipment and satisfy the seller?

Obtain a cashier's check from the bank

Dr. Brown has a large bill that he has to pay for his professional liability (malpractice) insurance. Which account is the medical assistant most likely to use to pay this bill?

Office money market account

Which of the following is a way that patients make payments on their outstanding accounts?

Online payments made by credit or debit card through the practice website

What type of record is used to keep track of all the charges and payments for each individual patient?

Patient ledger

Before leaving the office, the patient gives the medical assistant $10 on account. What type of entry does the medical assistant make to the computer billing program?

Payment

Who is responsible to determine the type or level of service provided to patient?

Physician or other provider

Many medical offices have some of their accounting duties performed by independent companies outside the office. What service(s) is/are commonly performed by such companies?

Preparing payroll checks for office employees

How should checks that are received by the medical facility be endorsed?

Restrictive endorsement

What is another name for the itemized charge slip commonly used in the medical office?

Superbill

If there is a question about the amount of money that has been drawn on a check, what determines the legal amount?

The amount written in words

What does it mean to successfully reconcile a bank statement?

The bank records and the medical office records are in agreement

How does the medical assistant know what the usual charge is for a procedure?

The charge appears from computer memory when the procedure is selected

What precaution should be taken when accepting a credit card for payment by a patient?

The name on the card should be the name of the individual presenting the card

What is an advantage of a computer billing system related to posting payments?

The record of the payment appears in types of reports (ledger, day sheet, etc.)

What is the major disadvantage of the single entry in bookkeeping system?

There is no method to crosscheck for accuracy of recording and calculations

What is the function of a daily journal (day sheet) in a bookkeeping system?

To keep a chronological record of transactions

How will the medical office usually utilize a savings account?

To keep a reserve fund of money that will not be needed for anticipated expenses

A credit adjustment is a change to a patient's account that reduces the balance of a patient's account.

True

Bookkeeping refers to the process of recording financial transactions, but accounting is a more general term used for the systematic recording and reporting of financial transactions.

True

Charges, payments and adjustments can be posted using a manual system or practice management software.

True

In a business checkbook, the stubs on the left side of the checkbook function as a running checkbook ledger.

True

The bag used to leave bank deposits in a night deposit box may contain an electronic device to allow the bank to identify the owner of the deposit bag.

True

The cash disbursements journal usually contains columns to track expenses by categories.

True

The petty cash fund should be replenished by writing a check to return the petty cash fund to the original starting amount.

True

When a patient charge is entered into a computerized medical billing system, the posting is reflected both in the patient ledger as well as the daily record of charges.

True

What is a valid system to reduce the number of manual checks that need to be written?

Use an online bill payment system

When can a signature stamp be used to endorse a check?

When the check will be deposited