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