Chapter 21- Financial Management

You received a check for $50.00 from Mrs. George in partial payment on her bill that is $350. Before you enter the check amount on her ledger card, you double-check the entries and find someone made a $75 error in her favor. What will her new balance be once the check is entered and the adjustment is made?

$225

When counting petty cash, the cash on hand plus the amount of the receipts should equal the predetermined amount for petty cash. How often should you check the cash on hand against the receipts to be sure petty cash is correct?

At the close of business every day

Jan returned with a receipt for her purchase and change from the money given to her from petty cash. You returned the change to the petty cash drawer and deducted the amount from the voucher. What should you do with the receipt?

Attach it to the voucher.

The office was only open a half day yesterday and will only be open a half day today. The daily log (day sheet) from yesterday was not closed out and there is still room on it. What should you do?

Close it out and start a new sheet.

When using the pegboard or write-it-once system, the daily log is also known as the

Day sheet

A payment made by the office for goods or services purchased is known as

Disbursement

Once the day's accounts receivable transactions are complete and deposits are recorded, you find that the amount to be deposited does not equal the amount collected. What do you do?

Double-check the entries to find the error before closing out the books for the day.

Which accounting system uses the formula assets = liability + capital?

Double-entry

All of the following tasks can be completed by electronic banking EXCEPT:

Explaining the profit and loss statement

. Which of these is used to record charges incurred by the patient, payments, adjustments, and the resulting balance?

Ledger card

The term _______ is used when comparing the bank statement balance to the checkbook balance to be sure no transaction has been missed.

Reconciliation

What is the purpose of the petty cash fund?

To pay for incidental or unexpected expenses

What is the purpose of using a voucher system with the petty cash fund?

To provide a method of tracking money used from the petty cash fund

Which of the following is NOT a procedure to be followed when setting up bookkeeping or banking systems?

Use markers, jotting an "x" as you work to avoid losing your place

Business (or personal) checks with stubs attached are known as

Voucher checks

If you make an error when completing a check, you should

Write VOID in ink across the front of the check and file it in numerical order with the returned checks

Before today's transactions can be added to the system, you must balance which of these?

Yesterday's day sheets

Having a system in place for handling petty cash ensures

availability of money for incidental expenses as well as accountability for the money.

At the end of each workday, you should be sure the petty cash is balanced. The amount in petty cash should not be different than sum of the

cash on hand and receipts.

The form that contains a single patient's financial information and record or transactions is called the patient

ledger card

Before you write a check to pay a bill for the practice, you should enter the check number, date, payee, and amount of the check

on the check register.

The best endorsement to use on a daily basis when preparing checks for the office deposit is the _________________ endorsement.

restrictive