bookkeeping mundy p.6

Which of the following skills will a medical office assistant need to perform accounting tasks?

All of the above

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

All of the above

On what date was John Rose last seen by the physician?

April 17

Ideally, when should patient payments be received?

At the time of service

Which kind of endorsement is the most risky?

Blank endorsement

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

Both a certified check and a money order

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

Daily

Which manual bookkeeping system has a built-in way to check for errors?

Double-entry system

When should a receipt be issued to a patient?

Every time the patient makes a payment in the office

Patients will most likely already understand the medical office's coding system.

False

The single-entry system requires each entry to be entered twice.

False

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

Make sure the patients 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 kind of endorsement is most common in a business setting?

Restrictive endorsement

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 necessary blanks on the check is incomplete?

The amount of the check, written in words

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

Who is responsible for recording disbursements?

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

What does it mean to extend credit to a patient?

The patient can pay for service in installments.

John is at the reception desk checking out after his appointment with Dr. Bowman. He does not have cash, so he offers to sign over his payroll check. What kind of check would this be?

Third-party check

What is the purpose of the HIPAA Privacy Rule?

To protect the privacy of patient information

Why might an office divide patient billing into several cycles per month?

To stabilize

A patient's new balance on the daysheet and his new balance on the patient ledger may be different.

false

Which patient received an EKG?

john

Your medical office just purchased new computers for the reception area. The total cost came to $5,500. The initial payment made was $1,000. The office still owes the remainder of the bill. Which of the following equations accurately shows the asset, liability, and equity amounts?

$5,500 (assets) = $4,500 (liabilities) + $1,000 (equity)

What was the fee for Brian Rose's last visit?

40

How much is the Rose family's current outstanding balance?

60

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

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 a bank statement?

A monthly summary of a bank account

Which of the following best describes a superbill?

A patient invoice listing services performed in one visit

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

Which of the following definitions best describes a deposit slip?

An itemized memo of funds to be posted to a bank account

Which of the following best defines the term "disbursement"?

An outgoing amount of money from the office

Accounts receivable are considered ____.

Assets

Which of the following is the correct equation for determining equity?

Assets - Liabilities = Equity

Why are insurance adjustments often necessary?

Because medical offices and insurance companies have contracts for reduced charges

If a patient plans to use a credit or debit card as payment, the physician is allowed to charge a higher fee for the patient's service.

False

If an office uses automatic withdrawal to pay bills, those payment amounts do NOT need to be posted on any office ledgers.

False

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

False

It is okay to threaten a patient who has not paid with legal action, even if this is an action the office is not currently planning to take.

False

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

False

When a patient makes a payment to a collection agency, the entire amount of that payment will be sent to the medical office.

False

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

Income

What is the first step an office assistant should take after receiving an NSF check?

Inform the check-writer that the check has been returned.

Did Jenny follow the rules of the Fair Debt Collection Practices Act?

Yes

If Mr. Fryer wants you to send him a refund check, should you still post his entire payment on the daysheet and on his ledger?

Yes

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

false

Payments received by mail do not have to be posted to the patient ledger.

false

In which of the following ledgers would an assistant look to find a specific patient's current outstanding balance?

ledger patient

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

true

When should daysheets be updated?

As each transaction takes place

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

Paying the office's utility bill is an example of income.

False

Reconciling the bank statement is optional.

False

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 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

Which of the following methods of payment is least likely to be accepted at any medical office?

Third-party check

The medical office assistant is responsible for helping patients understand their invoice.

True

When should a patient be given an estimate of how much the fee for service might be?

When the appointment is set

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

A person responsible for paying a patient's bill

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

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

In which of the following ledgers would an assistant look to find information on all the debts owed by the medical office?

Accounts payable ledger

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

Accounts receivable

In the previous dialogue, how did Jenny, the office assistant, confirm that she was speaking with the correct patient?

All of the above

Which of these is the most appropriate way to make corrections in a manual bookkeeping system?

Draw one line through the mistake and enter the correction above.

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.

In which of the following situations would the Truth in Lending Act apply?

If a patient sets up a payment plan with five installments

Which of the following is a disadvantage of the single-entry system?

It does not include a built-in quality check.

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

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

Why does the office assistant need a copy of the fee schedule when discussing patient invoices?

It lists the charges for each service

What purpose does the Truth in Lending Act serve?

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

What should be done with the old NSF check after an alternate form of payment has arrived and been fully processed?

It should be destroyed.

Is anything written on the Memo line of this check?

No

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

Non-sufficient funds

How often should patients receive a billing statement?

Once per month

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

Payor

What kind of check is most commonly received for payment?

Personal check

Terrance owes Dr. Ling's office $15.00 as a co-payment, but he doesn't get paid until tomorrow. He offers to write the check using tomorrow's date. What kind of check would this be?

Post-dated check

Which of the following endorsements specifies the person to whom the endorser is making the check payable?

Special endorsement

Which of the following pieces of information on a bank statement would be found in the Activity Synopsis section?

Total amount of money deposited for the month

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

True

A patient's financial records are protected under HIPAA regulations.

True

A physician might extend professional courtesy to the medical office assistant.

True

Medical office assistants may be required to perform accounting tasks.

True

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

A fee discount for health care workers

How much was patient Amir Fayed charged for today's service?

$75.00

In which of the following ledgers must an outstanding patient balance be recorded?

Both the patient ledger and the accounts receivable ledger

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

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

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

True

It is illegal to call a patient about an unpaid bill at 11:00 PM.

True

It is okay to mail a check as long as the check is not visible from outside the envelope.

True