Chapter 33

The medical office purchases office supplies, medications, utilities, and so on

a. accounts payable

Which of the following is not included in the company details on an invoice?

a. invoice number

The _______ demonstrates the value of a business.

a. net worth

The value determined by the market for similar buildings/properties at the time of sale

g. market value

It is typically the responsibility of the _____ to produce the values used in cost-benefit analysis.

a. accountant

Money borrowed to purchase merchandise on credit

a. accounts payable

Although not as commonplace today, the _____ bookkeeping systems have been used effectively for many years, are relatively inexpensive, provide hard copies for account balances, and are easy to use.

a. pegboard

Accounting systems include all but which of the following?

a. practice manager

When a statement is received from a supplier, you should:

a. verify that everything on the invoice was received before making payment

The A/R ratio has a goal of:

b. 2 months or less

Cost-benefit analysis is not:

b. an advanced, complex type of cost analysis

Building, equipment, cash

b. assets

Resources owned by a business

b. assets

A(n) ____ is also known as a statement of financial position.

b. balance sheet

When your medical office receives an invoice from a supplier, in which section does the name of the medical practice appear?

b. client details

The study and analysis of financial data as it applies to operational issues within a company is called ______ accounting.

b. managerial

The ____ ratio is also known as the adjusted collection ratio.

b. net collection

An example of a bad debt ______ would be if a patient owes the office $200 and the patient. dies unexpectedly, leaving the remaining balance of $200 uncollectible.

b. write-off

The petty cash fund is established by writing a check payable to "petty cash" or:

c. "cash"

If your receipts for 4 months add up to $200,000, what is your average monthly gross production?

c. $50,000

Daily ____ is an integral function of financial responsibilities in the practice.

c. balancing

A medical assistant working in accounts payable should:

c. be highly organized

Business organized under state law as a separate legal entity, with ownership divided into transferable shares of stock.

c. corporation

Most large companies: Wal-Mart, General Motors, General Electric, Intel, Apple, etc.

c. corporation

The _____ formula demonstrates a cost of a specific procedure or service.

c. cost ratio

The date by which payment should be made is called the:

c. due date

If the petty cash fund was originally $50, and it has been depleted down to $3, a new petty cash check should be written for:

d. $47

Which of the following is the best gross collection ratio?

d. 1.0

When invoices are held for payment, they are typically filed:

d. alphabetically by the supplier's name

If an office building is bought for $700,000, this is what the amount you pay for it is called

d. cost

To convert the gross collection ratio to a percentage, you:

d. multiply it by 100

Which of the following is not commonly considered an overhead expense?

d. payroll

Personal living expenses are kept separate from the expenses of the business

e. economic entity assumption

Creditors, mortgage, etc.

f. liabilities

One of two main assumptions in GAAP, requiring that transaction data can only be expressed in terms of money

h. monetary unit assumption.

The quality of service provided, the age and health of the owner, and employee morale are not included because they cannot be quantified in terms of money

h. monetary unit assumption.

Money borrowed (loans) to purchase major assets

i. note payable

Cash or other assets from stockholders in exchange for capital stock

j. (paid-in) capital

Business owned by two or more persons; each person is generally personally liable for the debts of this entity

k. partnership

Law firms, medical practices, CPAS

k. partnership

A business owned by one person, who is often the manager/operator of the business; the owner's net worth or equity (which consist of the amount by which the fair market value of all assets exceed liabilities)

l. proprietorship

The section of the balance sheet is determined by three items: revenues, expenses, and dividends

m. retained earnings

The ownership claim on total assets

n. stockholders' equity

Total amount paid in by stockholders

J. (paid-in) capital