Chapter 19 Pearson's Comprehensive Medical Assisting 3rd Edition

Deposits

Cash, checks, and money orders placed into a bank account after being received

Withholding

Deduction of federal, state and city taxes from gross wages

Fair Labor Standards Act (FLSA)

Federal law that regulates work conditions and pay

Double-entry bookkeeping

Financial activity of a business is recorded using this method

Bookkeeping

Recording of financial transactions

Reconciliation

Process of comparing the data on the bank statements with the records maintained in the office

Purchase order

A document produced by the medical office that authorizes the buyer to place an order

Packing slip

A document the shipper sends with the product that lists the item(s) in a package

Power of attorney (POA)

A financial agent can be implemented through this process

Internal controls

A system of checks and balances

Negotiable instrument

Actualizes, or permits the transfer of money to another person

Blank checks

An unused check

Financial agent

Authorized to sign a patient's check on behalf of him/her

Embezzlement

Unauthorized taking of funds

Third party check

Written by a party unknown to you

Endorsement

Signature on back of check

Magnetic Ink Character Recognition (MICR)

System of combining characters and numbers located at the bottom left side of checks and deposit slips

Accounting

System of reporting the financial results of a business

Invoice

A bill from the shipper that documents the total amount due

Voucher check

A check minus the stub

Stop-payment order

Bank does not allow funds to be disbursed per the payer

Fidelity bond

Employee dishonesty coverage

Stale check

If the check exceeds a set period time uncashed

Non-sufficient Funds (NSF)

In the payers account and he stop payment issued by the payer is one reason for a return of a check

Surety bond

Insurance for those who handle cash

American Bankers Association (ABA) number

Located in the upper right corner of a printed check

Accounts Receivable (AR)

Money owed to the medical practice for services provided

Accounts payable (AP)

Money that the medical office owes to vendors, suppliers, utility companies and others for services rendered

Deductions

Money withheld from an employee's check for taxes, health and life insurance premiums and other benefits

Cash disbursement

Payment made to creditors from the accounting asset labeled "CASH"

Payee

Person or company to receive the money

Payer

Person signing the check to release the money