MA 50 Week 4 Spelling and Terminology

Fair Debt Collection Practice Act

1977 federal law that outlines collection practices

Truth-in-Lending Act

also known as the Consumer Credit Protection Act of 1968; an act requiring providers of installment credit to state the charges in writing and to express the interest as an annual rate

balance

amount owed (N); to verify posting accuracy (V); records difference between debit and credit columns

accounts receivable

amount owed to a business for services or goods supplied

cashier's check

bank's own check drawn against the bank's account

voucher check

check with detachable form used to detail reason check is drawn; commonly used in payroll checks

probate court

court that administers estates and validates wills

credit

decreases balance due; column used for entering payments

day sheet

form used with pegboard system to record daily patient transactions

encounter form

formerly known as a charge slip or superbill. A copy of this is given to the patient after seeing the provider. It identifies the procedures performed, diagnoses, charges, and when to return

collection ratio

gross income divided by the amount that could have been collected less disallowances

adjustments

increases or decreases to patient accounts not due to charges incurred or payments received

pegboard system

most commonly used manual medical accounts receivable system

traveler's check

often used in place of cash when traveling; available in denominations of $20 to $100; requires a signature at place of purchase as well as signature at the time the check is used

accounts receivable ratio

outstanding accounts receivable divided by the average monthly gross income for the past 12 months

payee

person named on check who is to receive the amount indicated

ledger

record of charges, payments, and adjustments for individual patient or family

posting

recording financial transactions into a bookkeeping or accounting system

petty cash

small sum kept on hand for minor or unexpected expenses

notary

someone with the legal capacity to witness and certify documents; can take depositions

statute of limitations

statute that defines the period in which legal action can take place

accounts payable

sum owed by a business for services or goods received; also unwritten promise to pay a supplier for property or merchandise purchased on credit or for a service rendered

guarantor

the person identified as responsible for payment of the bill

debit

used for entering charges and description of services; column is on the left