Allied Health Assistant: Healthcenter21 Accounting
ideally, how often should money received by the office be deposited?
daily
fee for service
determined by a variety of factors -cost of providing the service -the amount of experience the physician has -the fees charged by other physicians in the same area or region
single-entry bookkeeping
each dollar amount is entered once on day sheet
double-entry bookkeeping
each entry recorded two times
liquidate
exchange for cash (usually assets)
if an office uses a computerized bookkeeping system, understanding manual bookkeeping is unnecessary.
false
it is acceptable to send personal information to patients by e-mail.
false
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
fair debt collection practice act
governs collections activities
what must assistants do before accepting a check from a new patient?
make sure the patient's identification matches the information on the check
accounts payable
money owed to others that has yet to be paid
accounts receivable
money owed to the company that has yet to be received -also considered assets
insurance accounts
money the insurance carrier owes for a specified patient services
patients accounts
money the patient owes for specific services after their insurance pays or denies payment
NSF
non-sufficient funds
aging report
one that records aged accounts receivable
aging accounts receivable
organizing accounts with outstanding balances into categories of how old they are
point of sale terminal (POS)
an electronic device used to process credit and debit card payments -reads information on card and electronically checks for sufficient funds to process the transaction
accounting transaction
an event that affects the financial position of a company and can be reliably recorded
billing statement
an itemization, or invoice, of the balance that patient owes for specific services
deposit slip
an itemized memo cash and checks to be credited to a bank account
invoice
an itemized statement -a patient bill that records services and charges for a specific time period
ledger
book with information on all office's business accounts
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
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
patient payment information entered on the daysheet must also be posted on the patient ledger.
true
bookkeeping system
used to track of a company's income and expenditures
what should be done if a mistake is made while filling out a check?
void the check and file it with cancelled check
equity
what belongs to business owners -calculated by: assets-liabilities=owner's equity
what is the first thing an assistant should do after receiving a patient overpayment?
call to inform the patient
credit card
card issued by either a bank or business -allow holder to make purchases on a line of credit
insurance adjustment overpayment
carrier decides whether to refund or treat like credit
bookkeeping
keeps billing, payment and expense records current -provides information for financial records -can be electronic -logs payment
bank statement
monthly summary of a bank account sent by the back to the account holder
how often should patients receive a billing statement?
once per month
who should be in charge of the petty cash fund?
one authorized person
disbursement
outgoing amount of money
which of the following terms refers to the person who writes the check?
payor
pegboard
pegs that line the top or side of the board keep forms in place
professional courtesy
physician may choose to discount fees for office employees or healthcare workers, lawyers, members of clergy
why is it necessary to reconcile the bank statement with the office check ledger?
-to ensure the accuracy of both documents -to find out which deposits have been processed -to find out which checks have not been processed
receipt
written proof of payment
when a patient makes a payment, what kind of accounting transaction is this for the medical office?
income
Truth in Lending Act purpose
it requires physicians to disclose interest charges if any are charged
write-off
a cancellation of a fee
types of checks guaranteed not to bounce
a certified check and a money order
liability
a companies debt
assets
a companies economic resources
third-party collection agency
a company of full-time, trained debt collectors not affiliated with the medical practice
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
who might a physician extend professional courtesy?
a fellow physician
what is the least confrontational way to approach a patient about an unpaid bill?
a letter
fee schedule
a list of specified fees a physician charges for services
guarantor
a person responsible for paying a patient's bills
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
installments
a set number of small payments
which of the following best describes a purchase order?
a standardized form to request an order from a vendor
what is the term for money owed to a company or office that has not yet been received?
accounts receivable
usual, customary, and reasonable (UCR)
amount for the same service
patient ledger card
an account summary of one individual or family
delinquent account
an account unpaid for a long period of time with no payments or contact from the patient
ideally, when should patient payments be received?
at the time of service
why insurance adjustments often necessary
because medical offices and insurance companies have contracts for reduced charges
third-party check
written by an unknown party to the payee and "signed over", or endorsed by the payer
post-dated check
check that is dated for a future date
point of service collection
collect and record payment at time of service
adjustment
correction/modification to financial information
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
accounting transactions
events that affect the financial position of a company and cane be reliably recorded
when should a receipt be issued to a patient?
every time the patient makes a payment in the office
in an office with a computerized practice-management system, patient invoices still must be written out by hand.
false
it is okay to complete a check in pencil as long as it is dark enough to read.
false
makes a check invalid
if the check is not signed, if the amounts on the check differ, if liquid paper is present on the check to cover a mistake
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
post
record information in a ledger or transfer from one to another
check ledger
record of all checks written and deposits made on behalf of the medical office -valuable when reconciling the monthly bank statement
billing cycle
refers to the designated time or times during which an office will bill all or part pf its accounts receivable
truth in lending act
regulation for extending credit to patients
most acceptable attitude 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
example of an accounting task
sending patient bills
activity synopsis
summary of the months activities
day sheet
summary of the offices daily financial activity
deposit
take the payments received in a period of time, combine them, transfer in the account
space 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
endorsements
the signature or stamp on the back of the check
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
HIPAA privacy rule
to protect the privacy of patient information
banking
tracking expenses, preparing and delivering deposits, reconciling monthly banking statements
debit card
works like a credit card, but makes electronic withdraws from card holder