week 11 Patient Accounts & Practice Management Quiz

At which point will medical assistant send a final demand letter to a patient?

120 days Rationale Patient account balances more than 90 to 120 days old require a final demand letter before the account is turned over to a collection agency. Text reference: p. 412

Which amount of time will a healthcare facility maintain bank statements before disposing to prevent check fraud?

7 years Rationale Bank statements and records will be maintained for up to 7 years and then shredded before disposal to minimize the chance of check fraud in the healthcare facility. Text reference: p. 427

Which is an example of an employee writing checks and maintaining the checking account register?

Accounts payable Rationale Writing checks and maintaining the checking account register are examples of accounts payable bookkeeping entries. Credits are bookkeeping entries that increase accounts receivable (what is owed to the provider). For example, posting charges to a patient's account. Adjustments are made to a patient's account when it is necessary to add or subtract an amount from the balance that is not a payment. For example, the difference between the provider's charged amount and the contracted insurance payment amount. Accounts receivable is money owed to the healthcare facility that comes from patient accounts. Text reference: p. 404

Which information will be included in the patient ledger?

Any special instructions for billing Name and address of the guarantor Insurance identification information Home, work, and cell phone numbers Emergency or alternative contact information Rationale The patient ledger will include all information related to collecting the balance due, including any special instructions for billing; name and address of the guarantor; insurance identification information; home, work, and cell phone numbers; and; emergency or alternative contact information. The patient's date of birth is not a mandatory component of the patient ledger. Text reference: p. 404

Which term describes any property available for the payment of debts?

Asset Rationale Assets are any property available for the payment of debts. Revenue is the amount that is left over after all expenses are paid. Liabilities are equities of the creditors to whom money is owed. The balance is the money in the banking account. Text reference: p. 403

Which term defines the property available for the payments of any debt?

Assets Rationale Assets is the term used to refer to all property owned by a person or entity. Equity to the value of assets after liabilities have been subtracted. Controls are the standard of comparison used to check the accuracy of results. Liabilities are the debts a person owes and not the properties owned by that person. Text reference: p. 403

What information does an account statement contain?

Balance due Rationale A healthcare facility will send monthly statements for all patient accounts that have a balance due. Collection procedures are procedures that use an available legal resource to collect payments. Collection activities are aggressive attempts to collect balances. Collection calls are made to the patient in an attempt to collect payment. Text reference: p. 411

Which term describes a recording of business and accounting transaction?

Bookkeeping Rationale Bookkeeping is the recording stage of accounting. Documentation is recording events that take place. A ledger is a financial record. Pegboard is a manual method for conducting accounting procedures. Text reference: p. 403

What action will the medical assistant take when receiving a returned check because of nonsufficient funds?

Call the signer of the check to discuss the situation. Rationale The medical assistant will immediately call the signer of the check to discuss the situation. He or she may then ask the patient to stop by the office to pay the amount needed to cover the check and any additional fees. The issue of nonsufficient funds can often be cleared up quickly and easily with courtesy and tact, assuming assistant will need to turn the situation over to a collection agency and report the bad check to a credit organization. Text reference: p. 407

The office accountant would like to establish how much revenue the office has received for the month. Which statement will the accountant prepare to find this information?

Cash on hand statement Rationale A cash on hand statement lists the payments received from patients for services rendered. A trial balance provides proof that the accounts are balanced. A balance sheet presents a financial picture of an organization on a specified date. A statement of income and expense provides a statement of profit and loss for an organization over a specified period but does not provide a statement of the amount of cash remaining at the end of a month. Text reference: p. 404

Which is the priority response when receiving several insurance checks for different amounts for the same patient on the same date of service?

Compare the checks to the explanation of benefits (EOB) and the patient ledge. Rationale The first step the medical assistant will take is to compare the checks to the EOB and the patient ledger. Each payment amount to be posted should match the total amount shown on the EOB and the patient ledger, which contains itemized fees for professional services with line-by-line descriptions. Posting a debit for an overpayment in the patient account is inappropriate; until the insurance checks are compared with the EOB of the patient ledger, there is no indication of overpayment. It would not be appropriate to refund the insurance company or to post the larger payment check or refund the smaller payments to the insurance company until the checks are compared with EOB and the patient ledger to correlate the payment amounts with the services rendered. Text reference: p. 409

What is a W-4 form?

Employee's Withholding Allowance Certificate Rationale A W-4 form is an Employee's Withholding Allowance Certificate that shows the number of withholding allowances claimed for tax purposes. An employment application is filled out by a person interested in employment. A collection agency document is used when collecting patient debt. An insurance claim form is used to request payment from an insurance company. Text reference: p. 428

Which document explains the allowed charge amount, the amount reimbursed for services, and the patient's financial responsibility?

Explanation of benefits (EOB) Rationale The EOB explains the allowed charge amount, the amount reimbursed for services, and the patient's financial responsibilities. The encounter form contains the patient's name, and insurance information, diagnosis codes, and charges related to each code, but it doesn't explain the allowed charge amount, the amount reimbursed for services, and the patient's financial responsibilities. The patient account ledger card provides a running balance, the result of all of the different financial transactions performed in the account, including charges, payments, and adjustments. The bookkeeping transaction entry can be a payment, an adjustment, or a credit, but it does not explain the allowed charge amount, the amount reimbursed for services, and the patient's financial responsibilities. Text reference: p. 407

Which entity manages all banks in the United States and monitors the movement of money in the form of checks from one bank account to another?

Federal Reserve Bank Rationale The Federal Reserve Bank manages all banks in the United States and monitors the movement of money in the form of checks from one bank account to another. Each check has a routing number and an account number. The numbers identify which Federal Reserve Bank jurisdiction, bank location, and specific bank accounts are used in each transaction. Congress created the Federal Reserve Banking System but does not manage all banks in the United States. The Board of Governors is a seven-member group with headquarters in Washington, DC; it is only one part of the Federal Reserve Banking System that manages all banks in the United States. The national banking system consists of about 2000 national banks, their branches, and other facilities around the world. The system plays critical role in creating and distributing the nation's wealth to ensure a healthy, growing economy, but it does not manage all banks in the United States. Text reference: p. 416

Which digits of the nine-digit routing number indicate the Federal Reserve district where the bank is located?

First two numbers Rationale The first two numbers of the nine-digit routing transit number indicate the Federal Reserve district where the bank is located. The first digit alone of the nine-digit routing transit number is insignificant. The third digit of the routing transit number indicates the specific district office. The final pair of numbers on their own are insignificant, however, the digits that come after the third number represent individual accounts belonging to a specific bank. Text reference: p. 419

Which form will a medical assistant fill out for income tax deductions?

Form W-2 Rationale The employer furnishes a copy of the W-2 form to reveal the identity of a person and list amounts withheld. The Employer's Quarterly Federal Tax Return form (Form 941) is not given to the employee. Instead, it is submitted to the regulatory body. Form 1040-S is the form for those who work as individuals. Tax statements are provided by the state and federal governments to employees by the Internal Revenue Service. Text reference: P. 428

Which individual will be held responsible for an account balance?

Guarantor Emancipated minor Rationale A guarantor (usually the patient) is the person legally responsible for the entire bill. In the case of a minor, a parent or legal guardian is considered the guarantor. The exception is the case of an emancipated assumes the rights and responsibilities of adulthood, including being held responsible for an account balance. According to federal regulations, a minor cannot be held financially responsible for his or her assistants must be familiar with state laws and office policies to determine where a statement will be sent. A healthcare provider or facility becomes a creditor when it extends credit to a patient allowing him or her to make payments on the amount owed over a specified period of time. The patient's extended family is not responsible for the account balance. Text reference: p. 411

Which strategy will the medical assistant use to demonstrate sensitivity when requesting payment from a patient?

Inform patients of the amount they will be expected to pay at the time of service before their scheduled appointment. Rationale The best strategy for demonstrating sensitivity when requesting payment from a patient is to contact the patient before his or her scheduled appointment and let the patient know how much he or she will be expect to pay at the time of service. Telling patients it is the practice's policy to collect payment at the time healthcare service is provided will no be helpful if a patient is not prepared to make a payment. Waiting will be made by cash, check, or credit card could come as an unexpected request, leading the patient to ask for a bill be sent instead. A payment arrangement contract will not be helpful until the total amount due is known and the patient is given the chance to determine how much he or she is able to pay at the time of service. Text reference: p. 410

Which action will the medical assistant take if there is a difference between the provider's charged amount and the contracted insurance payment amount on a patient's account?

Make an adjustment to the patient's account. Rationale When there is a difference between the provider's charged amount and the contracted insurance payment amount on a patient's account, an adjustment will be processed to the patient's account. In most cases, the provider's office is not allowed to balance bill the patient for the difference between the provider's charged amount and the contracted insurance payment amount, so there is no reason for the medical assistant to attempt to collect additional money from the insurance company. Based on information provided in the question, there is no reason to appeal the amount of the contracted insurance payment. Text reference: p. 404

Which entity makes third-party payments for healthcare services rendered?

Medicaid Medicare Insurance company Rationale Third-party payments are money paid by Medicaid, Medicare, or an insurance company. These entities pay the healthcare provider on behalf of a patient. A patient is the first party, the healthcare provider is the second party, and an insurance company, Medicaid, or Medicare is the third party. A patient's friends and family are not among the most frequent third-party payers of patient healthcare bills. Text reference: p. 407

Which is an example of accounts receivable?

Money that is expected but not yet been received Rationale Accounts receivable (A/R) refers to money that is expected but has not yet been received. A debt incurred and not yet paid is accounts payable. A patient account that is not paid by its due date is a past due account. A payment that is made on a patient account is called cash on hand. Test reference: p. 404

Which bookkeeping entry occurs when a payment by the patient is posted in addition to an insurance payment to a patient's account?

Overpayment Rationale Posting a patient payment and insurance payment to a patient's account for the same billed amount results in an overpayment. Overpayments occur when the amount paid for healthcare services by the patient or the third party exceed the amount owed on the patient's account. A debit is a bookkeeping entry that increases accounts payable (what is owed by the provider). A credit is a bookkeeping entry that increases accounts receivable (what is owed by the provider). Adjustments are made to a patient's account when it is necessary to add or subtract an amount; it is not a payment. Text reference: p. 404

How can an office manager verify that all items ordered have been delivered?

Packing slip Rationale The packing slip provides a description of the items enclosed in a shipment. Controls are not enclosed in a shipment but are used as standards of comparison to check the accuracy of obtained results. A statement is a request for payment, not the slip enclosed in a shipment. Disbursement does not refer to a slip enclosed with a shipment but to funds paid out. Text reference: p. 427

According to the Truth in Lending Act, which information is a healthcare facility required to provide to patients when offering credit options?

Payment due date Monthly interest rate Annual percentage rate Total costs to the borrower Late payment charge amounts Rationale When offering credit options to patients, the healthcare facility must be in compliance with Regulation Z of the Truth in Lending Act, which is enforced by the Federal Trade Commission (FTC). The act requires individuals be provided certain information when credit is extended, including when payments are due, the monthly interest rate, the annual percentage rate, the total costs to the borrower, and the amount of any late payment charges. The amount of each monthly payment will vary depending on the total amount owed, the amount the patient is able to pay each month, and the number of installment payments, therefore it is not required by the Truth in Lending Act. Text reference: p. 410

According to the Truth in Lending Act, which information is a healthcare facility required to provider to patients when offering credit options?

Payment due date Monthly interest rate Annual percentage rate Total costs to the borrower Late payment charge amounts Rationale When offering credit options to patients, the healthcare facility must be in compliance with Regulation Z of the Truth in Lending Act, which is enforced by the Federal Trade Commission (FTC). The act requires individuals be provided certain information when credit is extended, including when payments are due, the monthly payment will vary depending on the total amount owed, the amount the patient is able to pay each month, and the number of installment payments, therefore it is not required by the Truth in Lending Act. Text reference: p. 410

Which manual system allows the medical assistant to keep control over cash, collections, and receivables while ensuring that every cent is accounted for and properly entered?

Pegboard Rationale The pegboard system allows the medical assistant to keep control over cash, collections, and receivables while ensuring that every cent is accounted for and properly entered. A ledger is where all the procedures and charges for services rendered are listed. An encounter is a form with a patient's name, insurance information, diagnosis codes, and charges related to each code; it does not keep control over cash, collections, and receivables or ensure every cent is accounted for and properly entered. Bookkeeping is the process of recording financial transactions. Text reference: p. 404

Which type of system uses a manual method?

Pegboard Rationale The pegboard uses manual methods to apply transactions to patient accounts. Accounts receivable is money that is noted to be expected by manual or electronic method. Accounts payable is debt that is noted manually or electronically to be paid. The accrual method is a system that documents when services have been performed or goods have been sold, even though payment may not have been received. Text reference: p. 404

Which expenditure will the medical assistant likely pay for using petty cash?

Pens and copy paper Rationale Petty cash is typically used for small expenses, such as office supplies, postage, deliveries, or minor office supplies. An international visit would bot be covered with petty cash amounts. Petty cash is not used for an electricity bill because this is paid monthly. A patient education brochure would cost more than the amount that would be in the petty cash fund. Text reference: p. 427

Which method can be most effective for collecting past due balances?

Personal finance interviews Rationale Personal finance interviews with patients are typically more effective than a series of collection letters, telephone calls, or use of collection agencies. Speaking with a patient face-to-face often results in a better understanding of the problem and leads to an agreement about future payment plans. Text reference: p. 414

What is a responsibility for a newly hired bookkeeper at a healthcare facility?

Recording financial transactions Rationale A bookkeeper is responsible for recording financial transactions. Bookkeeping does not involves recording, classifying, and summarizing financial transactions. Text reference: p. 403

What is responsibility for a newly hired bookkeeper at a healthcare facility?

Recording financial transactions Rationale A bookkeeper is responsible for recording financial transactions. Bookkeeping does not involve the classifying or summarizing of financial transactions. Accounting involves recording, classifying, and summarizing financial transactions. Text reference: p. 403

Which type of bank can a healthcare facility choose to do business with?

Retail banks Online banks Credit unions Commercial banks Rationale Healthcare facilities can do business with retail banks, online banks, credit unions, and commercial banks. Healthcare facilities cannot choose combine the features of checking and savings accounts. a minimum balance is required (anywhere from $500 to $5000). The balance earns interest at money market rates (usually a higher percentage rate than for a regular savings account) and allows only a specified number of checks (frequently three) to be written per month. Text reference: p. 418

What is the term for a document sent to a patient on a monthly basis to show a balance due?

Statement Rationale The statement is a document sent to a patient on a monthly basis tp collect money owed. The ledger is a record of financial transactions and charges. The receipt is given to the patient when a payment is made in the office. Disbursements are monies paid to individuals or businesses. Text reference: 411

Why do patient accounts need to be examined periodically to see if insurance payments have been received?

To avoid collection activity on account Rationale Patient accounts will need to be examined for payments to avoid collection activity on such accounts. Insured patients are not under obligations unless their insurance does not cover the treatments. To determine the age g of various accounts, the medical assistant compiles the account into categories. Insured patients will not be prompted to clear the payments because the insurance company may pay the healthcare organization. Text reference: p. 412

Which term is used to describe credit card debt?

Unsecured debt Rationale Unsecured debt is any debt that is not guaranteed by something of value, and credit card debt is the most common type of unsecured debt. Outgoing is not a term used in accounting. Assets are all property available for the payment of debts. The debt-to-income ratio is the comparison of debt a business has with the income it has. Text reference: p. 403

The office manager is sending final demand letters before late accounts are turned over to collections. Which aging categories are they looking for?

91-120 days Rationale Patient account balances more than 90-120 days old require a final demand letter before the account is turned over to a collection agency. Test reference: p. 412

Which term is used when a payment is made on the patient account?

Cash on hand Rationale Cash on hand is referred to the payment that is made on the patient account. Petty cash is used to purchase small items for the office. Accrual basis is referred to when revenue is reported on the income statement. The term incurred refers to acquiring something. Text reference: p. 404

Why will the medical assistant make daily bank deposits of checks?

Checks may have restricted time payment. Prompt processing is a courtesy to the payer. It makes the money available for paying expenses. A stop-payment order may be placed on a check. Checks my be lost, misplaced, or stolen over time. Rationale Depositing checks daily is important for several reasons. Checks may have a restricted time payment, prompt processing is a courtesy to the payer, it makes the money available for paying expenses, a stop-payment order may be placed on a check, and checks may be lost, misplaced, or stolen over time. Many offices and healthcare facilities discourage cash payments, because they can be difficult to track and can also make it easier for employees to embezzle. Text reference: P. 423

Which precaution will be taken at healthcare facilities when accepting checks?

Corrected checks are unacceptable Checks must include the correct date, amount, and signature. Signature on checks and check writer's state-issued identification (ID) must match. Out-of-town checks, government checks, and unnumbered checks cannot be accepted. Rationale If it is a healthcare facility's policy to accept checks, certain precautions must be taken. Checks with corrections are unacceptable; all checks must include the correct date, amount and signature; the signature on the check and check writer's state-issued ID must match; and out-of-town checks, government checks and unnumbered checks cannot accepted. Third-party checks are typically not accept at healthcare facilities, because allowing a third party to cash a check increases the risk of fraud. Text reference: p. 421

Which type of adjustment will be posted to the patient ledger if a payment has been returned because of nonsufficient funds (NSF)?

Debt Rationale Debt adjustments are posted to the patient ledger when an amount needs to be added to a patient's balance, but it is not a charge for services, as is the case when a check a patient has written to the healthcare facility is returned for NSF. The amount had initially been credited to the account, but the healthcare facility did not receive the funds. Therefore a debit adjustment must be made to add the amount of the check back to the patient's balance. A credit adjustment is made to the patient ledger when a payment is made for healthcare services rendered. A charge is he documentation of money owed by a patient for healthcare services. A balance is the amount remaining on the patient ledger that needs to be paid. Text reference: p. 407

Which will cause a discrepancy between the closing balance of the bank statement and the accounting management software?

Deposit recorded twice Missing outstanding check Incorrect mathematical calculations Transposed pay amount on deposit, check, or online bill Rationale If the closing balance on the bank statement does not match what is indicated in the accounting software, the medical assistant will ask the following questions to determine the cause. 1) Are the mathematical calculations correct? 2) Id there an outstanding check missing? 3) Has deposit been recorded twice or not at all? and 4) Could a deposit, check, or online bill pay amount be transposed? Altered account documents are not likely to be a cause of mismatched closing balances. Text reference: p, 427

Which will cause a discrepancy between the closing balance if the bank statement and the accounting management software?

Deposit recorded twice Missing outstanding check Incorrect mathematical calculations Transposed pay amount on deposit, check, or online bill Rationale If the closing balance on the bank statement does not match what is indicated in the accounting software, the medical assistant will ask the following questions to determine the cause. 1) Are the mathematical calculations correct? 2) Is there an outstanding check missing? 3) Has a deposit been recorded twice or not at all? and 4) Could a deposit, check, or online bank pay amount be transposed? Altered account documents are not likely to be a cause of mismatched closing balances. Text reference: p. 427

Which process facilitates electronic payments of payroll, may owed the vendors, and payments from government agencies?

Direct deposit Rationale Direct deposit, also known as electronic funds transfers (EFT), facilitates the electronic payment of payroll, money owed to vendors or business establishments, and payments from government agencies. Reconciliation is the monthly process of bringing the accounting management software financial statement into agreement with the bank electronically via the internet. Online or electronic bill paying is the setting up of accounts for bills occurring every month to be paid automatically; this process would not be utilized for payroll or payments from government agencies that do not occur monthly. Text reference: p. 428

Which process facilitates electronic payment of payroll, money owed to vendors, and payments from government agencies?

Direct deposit Rationale Direct deposit, also known as electronic funds transfers (EFT), facilitates the electronic payment of payroll, money owed to vendors or business establishments, and payments from government agencies. Reconciliation is the monthly process of bringing the accounting management software financial statement into agreement with the bank statement. Online banking is the means of performing bank services electronically via the internet. Online or electronic bill paying is the setting up of accounts for bills occurring every month to be paid automatically; this process would not be utilized for payroll or payments from government agencies that do not occur monthly. Text reference: p. 428

Which term describes money in a bank account that is not assigned to pay for any office expenses?

Discretionary income Rationale Discretionary income is money in a bank account that is not assigned to pay for any office expenses. Unsecured debt that is not guaranteed by something of value. Intangible is something of value that cannot be touched Earned income is income that is earned before any taxes or fees are taken out. Text reference: p. 403

Which form will an employee complete to indicate how many allowances he or she is claiming?

Form W-4 Rationale Form W-4, which is the Employee's Withholding Allowance Certificate, is used to show the number of withholding allowances claimed. Form W-3 is used to transmit the wage and income tax withheld statements to the Social Security Administration. Form SS-5 is used when applying for a tax identification number. Form 940 is used when filing the annual Federal Unemployment Tax Act (FUTA) return. Text reference: p. 428

Which will determine the fee charged for services?

Insurance company contracted amounts Healthcare Common Procedure Coding System (HCPCS) Rationale Most practice management systems will automatically determine the fee based on insurance company contracted amounts and the HCPCS code. A patient's ability to pay, the severity of a patient's illness, and the geographic area do not determine the fee charged for medical services. Text reference: p. 407

Which will determine the fee charged for services?

Insurance company contracted amounts Healthcare Common Procedure Coding System (HCPCS) Rationale Most practice management systems will automatically determine the fee based on insurance company contracted amounts and the HCPCS code. A patient's ability to pay, the severity of a patient's illness, and the geographic area do not determine the fee charged for medical services. Text reference: p. 407

A biohazard company has a contract with a medical office for waste disposal. Which document will the company send to the office when payment is due?

Invoice Rationale An invoice is a document describing the items or services purchased and the amount due. A statement is a request for payment, and it does not include a description of the items purchased. A packing slip does not include the amount due. A disbursement only includes the funds paid. Text reference: p. 427

Which statement needs correction regarding the petty cash account?

It can be used as a small personal loan for employee's expenses. Rationale The petty cash should not be used to loan employees small amounts of money.

What statement needs correction regarding the petty cash account?

It can be used as a small personal loan for employee's expenses. Rationale The petty cash should not be used to loan employees small amounts of money. Instead, the petty cash account will only be used to disburse small amounts of money for small items such as postage, deliveries, and office supplies. A journal will be kept of all transactions. Text reference: p. 427

Why is it important for employees to complete a W-4 form?

It helps is showing the number of allowances claimed. Rationale A W-4 form refers to the Employee's Withholding Allowance Certificate, which shows the number of withholding allowances claimed by the employee. Form 941 refers to the Employer's Quarterly Federal Tax Return, which is used to file the quarterly federal tax return. Form SS-4 refers to the employer identification number, and is used to obtain the employer identification number. Form 1040-S refers to the Declaration of Estimated Tax for Individuals, which is used to determine the estimated tax for an individual. Text reference: p. 428

Which statement is true regarding the pegboard system?

It is utilized by providers that have been in practice for many years. Rationale The pegboard system is utilized by providers that have been in practice for many years and do not want to invest in a practice management software system because of the cost. The pegboard system is inexpensive and hoes not require subsidiary journals, which are used in double-entry systems. The pegboard system does not require high-level training. Text reference: p. 404

Which statement describes the purpose of petty cash in a healthcare facility?

It provides funds for business meals and parking fees. Rationale Petty cash is the amount of money a healthcare facility maintains to pay for small and unexpected expenditures such as business meals, deliveries, minor office supplies, and postage and parking fees. A provider's salary is used to pay the provider for services rendered. If a facility accepts cash payments, they inform the patient that change cannot be made for larger bills. Bookkeeping used for predictable, repeated expenditures. Text reference: p. 427

Which information will a collection agency need to initiate collection procedures on overdue accounts?

Last known address Full amount of debt Guarantor's full name Occupation of debtor Employer's address and phone number Rationale A collection agency needs certain information on a debtor before pursuing collection procedures on overdue accounts, including last known address, full amount of debt, guarantor's full name, occupation of debtor, and employer's address and phone number. The Social Security number of the guarantor does not need to be obtained by a collection agency before initiating collection procedures on overdue accounts. Text reference: p. 416

In which document will a medical assistant record procedure and charges for services rendered?

Ledger Rationale The medical assistant first records the services rendered, charges, and receipts on the patient's ledger. An encounter form documents charges and is completed during the office visit. A cash payment journal is used to make the payments. A disbursements journal usually consists of a section at the bottom of each day sheet. Text reference: p. 404

Which document will the medical assistant use to view all financial transactions performed in a patient's account, such as charges, payments, and adjustments?

Ledger Rationale The patient ledger provides a running balance, the result of all of the different financial transactions performed in a patient account, including charges, payments, and adjustments. The medical ledger does not contain patient financial account information. The patient encounter form contains a patient's name, insurance information, diagnosis codes, and charges related to each code but it does not contain a running balance of the different transactions performed in a patient's account. Accounts receivable for the healthcare provider is the amount charged on the patient encounter form for the health services provided, not a running balance of the different transactions performed in a patient account. Text reference: p. 404

Which refers to the small amount of cash kept readily available by a healthcare practice for miscellaneous expenses?

Petty cash Rationale Petty cash is the standardized name for a small amount of money kept readily available for inexpensive miscellaneous costs. Cash on hand, cash close by, and convenient cash are not commonly accepted terms for money used this way at healthcare facilities. Text reference: p. 427

Which type of fund is used for minor office expenses?

Petty cash fund Rationale The petty cash fund is used for minor office expenses, such as parking, postage, deliveries, and minor office supplies. Medical offices do not have disbursement funds available. Patient business account funds are only to be used to charge or credit services. Interest-bearing accounts are at the bank that collect interest. Text reference: p. 427

When a medical assistant pays postage on a package to be mailed, on which record will he or she notate the expense?

Petty cash records Rationale A petty cash fund helps in making payments for small and unpredictable expenses, such as postage due or parking fees. A checkbook contains documents of deposits to the checking account and payments made by check. An accounts receivable ledger is where payments owed the provider are recorded. A disbursement journal is used to record the expenditures of a company. Text reference: p. 427

Which financial management responsibility will the medical assistant in the front office have?

Posting charges Endorsing and depositing checks Writing checks for office expenses Posting payments and adjustments Regularly reconciling bank and credit card statements Rationale The medical assistant working in the front office is responsible for posting charges, endorsing and depositing checks, writing checks for office expenses, posting payments and adjustments, and regularly reconciling bank and credit card statements. Ordering office supplies is not considered a task related to medical practice financial management. Text reference: p. 403

Which court is an inexpensive way for healthcare practices to collect delinquent accounts?

Small claims court Rationale Many healthcare practices find small claims court to be a satisfactory, inexpensive way to collect delinquent accounts. For a very small investment of time and money, the use of small claims court allows the provider to save time compared with a civil court action and eliminates attorney's fees. In addition, if small claims court awards a judgment for the amount owed, the plaintiff in small claims court may also recover the costs of the suit. Civil court costs more than small claims court and requires the use of an attorney to pursue a lawsuit. Circuit courts are regional and are part of the federal court system; they do not get involved with the collection of delinquent accounts for healthcare practices. District courts are the general trial courts of the federal court system and are not employed to collect delinquent accounts for healthcare practices. Text reference: p. 416

Which document is used to locate errors in the checking account register and ensure banks are managing account funds accurately?

Statement reconciliation Rationale Bank statement reconciliation is used as an audit to ensure a bank is managing account register. Debit transactions are any amount withdrawn from a checking account. The ending statement balance only provides the amount in the bank account at a specific time, when deposits are added to the beginning balance and withdrawals and fees are subtracted. Online payment transactions only account for deposits, fees, and payments made electronically from the bank account; they do not include other types of activities that can affect the bank account balance. Text reference: p. 424

For which reason can an individual request the bank stop a payment on a check that has been written?

The check get lost. There is a disagreement on payment. The purchase is being disputed. The check was issued for an incorrect amount. Rationale The most common reasons for a check writer to ask a bank to stop payment on a check include loss of a check, disagreement about a payment, dispute of a purchase, and a check issued for an incorrect amount. A check that is not cashed within 30 days of the issue date is not a sufficient reason to stop payment on the check. If a check writer intends for a check not to be honored after a specific number of days, the information must be printed on every check issued by the check writer. Text reference: p. 424

Which banking service does online banking provide electronically via the internet?

Viewing checking account balances Viewing images of transactions Paying bills electronically and creating checks Determining whether a check has cleared the bank Transferring funds between accounts in the same bank Rationale Online banking is a means of performing several basic banking services electronically via the internet, including viewing checking account balances, viewing images of transactions, paying bills electronically, creating checks, determining whether a check has cleared the bank, and transferring funds between accounts at the same bank. It is not possible to withdraw money the same day as opening an account, because it takes more than 1 day for the money used to open the account to be verified by the online banking entity. Text reference: p. 418-419

Which banking services does online banking provide electronically via internet?

Viewing checking account balances Viewing images of transactions Paying bills electronically and creating checks Determining whether a check has cleared the bank Transferring funds between accounts in the same bank Rationale Online banking is a means of performing several basic banking services electronically via the internet, including viewing checking account balances, viewing images of transactions, paying bills electronically, creating checks, determining whether a check has cleared the bank, and transferring funds between accounts at the same bank. It is not possible to withdraw money the same day as opening an account, because it takes more than 1 day for the money used to open the account to be verified by the online banking entity. Text reference: p. 418-419

Which type of negotiable instrument can be attached to an explanation of benefits, has a portion used to itemize or specify the purpose for which the instrument is drawn, and is used to post the payment in the patient account ledger?

Voucher check Rationale A voucher check is a type of negotiable instrument that can be attached to an explanation of benefits, has a portion used to itemize or specify the purpose for which the instrument is drawn, and can be used to post a payment in the patient account ledger. Money orders can be purchased at banks, some retail stores, and the US Postal Service. Money orders can be used to pay bills by mail if a person does not have a checking account. A personal check is one patients typically write for copayments and other financial responsibilities. It is drawn by a bank against funds deposited to a personal account in another bank. Cashier's checks are a bank's own checks. The check is drawn on itself and signed by a bank cashier or another authorized official. It can be obtained by paying the bank the amount of the check in cash. Text reference: p. 419