Medical Assisting - Chapter 20

When you ask Mrs. Redding how she would like to pay the $48 she owes for today's services, she hands you a credit card. When you look at the card, you realize that the card expired two months ago. Which of the following would be your best response to Mrs. Redding? 1) "Mrs. Redding, I can't use this card because it expired two months ago." 2) "Mrs. Redding, this card has expired; would you like me to bill you instead?" 3) "I'm sorry, Mrs. Redding, but this card has expired. Do you have another card we might use?" 4) "If I put the charge through on this expired card, the credit card company will be furious." 5) "Why are you trying to pay us with an expired credit card?"

"I'm sorry, Mrs. Redding, but this card has expired. Do you have another card we might use?"

On average how much will a medical practice generally receive if the provider charges $100 for services and the patient pays with a credit card? 1) $100 2) $90-$94 3) $82-$85 4) $86-$89 5) $95-$99

$95-$99

Starting with step one, list the steps to process a patient refund.

1) Calculate and determine the amount to be refunded. 2) Record the check number and amount in the disbursements journal or checkbook and write a check to the patient for the amount to be refunded. 3) Ask the proper person to sign the check. 4) Post the refund as a negative payment to the patient's ledger card or account. 5) Make a copy of the check, and mail the original to the patient.

List the steps to record disbursements, starting with setting up a new page in the journal.

1) Give each column a heading, to reflect the type of expense. 2) Fill in the date, payee's name, check number, and check amount on the the check in the appropriate column. 3) Determine the expense category of the check. 4) Record the check amount in the column for the type of business expense. 5) If you have to split into two columns, record the total in the check amount column.

Starting with step 1, list the order of how to process a payment resulting in a credit balance.

1) Locate the patient's account in the computer or pull the ledger card. 2) Post the total amount of the payment received. 3) Subtract the payment amount from the previous balance and insert the new balance in the balance column. 4) Review the account thoroughly checking to see if any more receipts are expected on the patient's account. 5) If a credit balance is verified, adjust the credit balance off the patient's account.

List the steps to posting a non sufficient funds check, starting with step 1.

1) Locate the patient's account or pull the patient's ledger card. 2) Create a new charge log using today's date and use the code to document NSF. 3) In the payment/adjustment column, place the amount of the check in parentheses. 4) Enter the charge amount in the charge column and add this amount to the patient's current balance.

List all parts of performing a trial balance, starting with the first step.

1) Total the check amount column. 2) Calculate the total for each expense column. 3) Add together all expense column totals. 4) Recheck every entry if the amounts do not match. 5) When you balance, carry forward all column totals to the disbursements journal for the next month.

Starting with step one, list the steps to set up a disbursement journal.

1) Write in or key column headings for the basic information for each check. 2) Enter column headings for each type of business expense. 3) Write in column headings for deposits and the account balance. 4) Record the data from completed check under the appropriate column headings. 5) Subtract payments from the balance and add deposits.

List common banking tasks. 1) Accepting checks 2) Writing checks 3) Keeping checks 4) Endorsing checks

Accepting checks Writing checks Endorsing checks

The process of communicating the income and expenses of a business and its financial health is known as: 1) Statements 2) Bookkeeping 3) Accounting 4) Procedures

Accounting

Which of the following describes the money that a medical practice must pay to run the business? 1) Open-book account 2) Written-contract account 3) Accounts payable 4) Accounts receivable

Accounts payable

Which of the following is money owed by a practice to other businesses or entities? 1) Disclosure statement 2) Open-book account 3) Accounts payable 4) Accounts receivable

Accounts payable

Match the key terms accounts payable, accounts receivable, age analysis, and single-entry account with their definitions.

Accounts payable - Income or money owed by the business Accounts receivable - Income or money owed to the business Age analysis - Process of classifying and reviewing past-due accounts by age from the first date of billing Single-entry account - Account consisting of only 1 charge

To protect a practice from lost income because of nonpayment, the practice may buy 1) Accounts payable insurance 2) Malpractice insurance 3) Accounts receivable insurance 4) Office management insurance

Accounts receivable insurance

The date of the most recent payment and how long each part of the balance has been waiting on the A/R should be included in a(n) 1) Credit history 2) Credit synthesis 3) Age diagnosis 4) Age analysis

Age analysis

The process of classifying and reviewing past-due accounts from the first date of billing is a(n) __________. 1) Superbill 2) Statement 3) Invoice 4) Age analysis 5) Collection letter.

Age analysis

Which of the following helps you keep on top of past-due accounts and determine which ones need follow-up? 1) Credit reports 2) Billing analysis 3) Age analysis 4) Ledger cards

Age analysis

Which of the following is the process of classifying and reviewing past-due accounts by age from the first date of billing? 1) Age analysis 2) Single accounting 3) Accounts receivable 4) Credit report

Age analysis

To make the deposit, place the following into the deposit bag. . 1) All checks 2) The patient ledgers 3) The deposit slips 4) All cash

All checks The deposit slips All cash

Who sets guidelines for practices that accept credit cards as a form of payment? 1) American Medical Association 2) American Medical Technologists 3) American Finance Association 4) American Association of Medical Assistants

American Medical Association

What must be included in a disclosure statement? 1) Amount of the down payment 2) Interest rate 3) Method of payment 4) Amount of total debt

Amount of the down payment Interest rate Amount of total debt

Large practices may have both their insurance and patient billing procedures handled by who? 1) The insurance carriers 2) An independent billing service 3) The office manager 4) The patient's ledger card

An independent billing service

What are the different types of checking accounts a practitioner may have? 1) An interest-earning account 2) A business account 3) A personal account 4) A cashier's account

An interest-earning account A business account A personal account

An appropriate way to handle a patient relocation and address change is to __________. 1) Write off the charges as a hardship case 2) Stop trying to contact the patient after two unsuccessful tries 3) Send a statement to the patient's relatives for payment 4) Turn the account over to a collection agency immediately 5) Ask a third party for the patient's new address

Ask a third party for the patient's new address

Mrs. Patterson brings her 17-year-old daughter Kelly in for a prenatal exam. When you inform Mrs. Patterson of the amount owed for today, she exclaims, "Oh, no! Kelly moved out last week and is staying with the rascal that did this to her. She can pay for her own care!" What should you do? 1) Call Kelly's father to see if he will pay the bill. 2) Call Kelly's boyfriend and tell him that he is responsible for the bill. 3) Ask for legal evidence that Kelly is an emancipated minor. 4) Explain to Mrs. Patterson that she is still responsible because her daughter is a minor. 5) Require Kelly to pay the entire amount due.

Ask for legal evidence that Kelly is an emancipated minor.

The most appropriate way to determine which parent has consent ability and payment responsibility for a minor child is to __________. 1) Ask the parent who makes the appointment about financial responsibility before making the appointment 2) Assume that the parent who brings the child for treatment has consent ability and payment responsibility 3) Require a letter from one of the parents guaranteeing payment 4) Check with the court system to see who was awarded custody 5) Ask the parent who is with the child at the time of the appointment who has financial responsibility

Assume that the parent who brings the child for treatment has consent ability and payment responsibility

Which of the following is appropriate when placing an initial call to a patient about collections? 1) Call the patient at work. 2) Tell the patient that if payment is not received promptly, the account will be turned over to a collection agency. 3) Assume that the patient forgot to pay or was temporarily unable to pay. 4) Ask the patient why the bill has not been paid. 5) Make the initial call if payment has not been received after 15 days.

Assume that the patient forgot to pay or was temporarily unable to pay.

When do most smaller practices send out their statements? 1) At the end of the month 2) Patients are allowed to request a billing time that is convenient for them 3) Daily 4) Weekly 5) Whenever the medical assistant has time to prepare the statements

At the end of the month

Some software programs _____________________ assign the next available check number to each new check you enter. 1) Manually 2) Automatically 3) Don't always 4) Chooses to

Automatically

A bank draft or order for payment is known as: 1) A check 2) The payer 3) Negotiable 4) A credit card

A check

Any payment the medical office makes for goods or services is called __________. 1) A voucher check 2) A limited check 3) A counter check 4) A disbursement 5) Accounts receivable

A disbursement

Any payment the practice makes for goods or services is called 1) Reconciliation 2) Accounts receivable 3) Bookkeeping 4) A disbursement

A disbursement

Which of the following is a diplomatic way to ask a patient for payment? 1) "That will be $74. What is your check number?" 2) "You will need to pay the $74 you owe before you can see the provider." 3) "For today's visit, the total charge is $74. How would you like to pay?" 4) "We need a $74 payment by cash, check, or credit card." 5) "I need $74 for today's visit."

"For today's visit, the total charge is $74. How would you like to pay?"

An easy-to-read report on the business transactions for a given period, such as a month, quarter, or a year, is called 1) A record 2) A financial summary 3) A financial record 4) Bookkeeping.

A financial summary

Adrian is a patient whose parents were killed in a skiing accident a few months ago. Adrian was involved in an automobile accident this morning. He refused ambulance transport and a friend brought him to your office because he needed only minor wound care. He turned 21 last week, so he is legally an adult. He tells you he has no insurance and doesn't know how he will pay for his care. Adrian might be a candidate for __________. 1) Medicaid 2) County assistance 3) A hardship case 4) A collection agency 5) Medicare

A hardship case

Which of the following should be included in an age analysis? 1) Balance due 2) Date of charges 3) Patient's name 4) Spouse's name

Balance due Date of charges Patient's name

Which of the following should be included in a patient statement? 1) Medication prescribed 2) Balance from the previous month 3) Patient's name and address 4) Guarantor's name

Balance from the previous month Patient's name and address Guarantor's name

Independent billing services 1) Bill insurance plans 2) Call patients to remind them of payment 3) Produce computer-generated statements 4) Rapidly copy ledger cards

Bill insurance plans Produce computer-generated statements Rapidly copy ledger cards

The systematic recording of business transactions, is known as: 1) Procedures 2) Statement 3) Bookkeeping 4) Accounting

Bookkeeping

Who is responsible for payment for a minor's treatment if the minor's parents are married? 1) A grandparent 2) Both parents 3) A sibling 4) The minor

Both parents

If a check is returned for nonsufficient funds, notify the patient immediately and request that payment be paid 1) With another check 2) In 20 day 3) By another method 4) In full

By another method In full

Which act requires credit bureaus to supply correct and complete information to businesses to use in evaluating a person's application for credit, insurance, or a job? 1) Fair Debt Collection Act 2) Truth in Lending Act 3) Equal Credit Opportunity Act 4) Fair Credit Reporting Act

Fair Credit Reporting Act

Which of the following requires credit bureaus to supply correct and complete information to businesses for use in evaluating a person's application for credit, insurance, or a job? 1) Equal Credit Opportunity Act 2) Fair Debt Collection Practices Act 3) Fair Credit Reporting Act 4) Telephone Consumer Protection Act 5) Truth in Lending Act

Fair Credit Reporting Act

Which of the following also is called Public Law 95-109? 1) Telephone Consumer Protection Act 2) Equal Credit Opportunity Act 3) Fair Credit Reporting Act 4) Truth in Lending Act 5) Fair Debt Collection Practices Act

Fair Debt Collection Practices Act

Which of the following governs the methods that can be used to collect unpaid debts? 1) Fair Debt Collection Practices Act 2) Fair Credit Reporting Act 3) Telephone Consumer Protection Act 4) Equal Credit Opportunity Act 5) Truth in Lending Act

Fair Debt Collection Practices Act

Which of the following requires debt collectors to treat debtors fairly and without collection tactics such as harassment, false statements, threats, and unfair practices? 1) Fair Credit Reporting Act 2) Telephone Consumer Protection Act 3) Truth in Lending Act 4) Equal Credit Opportunity Act 5) Fair Debt Collection Practices Act

Fair Debt Collection Practices Act

Which act governs the methods that can be used to collect unpaid debts? 1) HIPAA Law of 1996 2) Payment Plans of 1964 3) Medical Practice Act of 1983 4) Fair Debt Collection Practices Act of 1977

Fair Debt Collection Practices Act of 1977

Any ______ your office charges for NSF must be clearly stated and in plan in view for the patients to see. 1) Debits 2) Fees 3) Credits 4) Services

Fees

After completing a manual statement, the medical assistant should 1) Fold it in thirds 2) Have the doctor look at it 3) Fax it to the patient 4) Double-fold it

Fold it in thirds

What is it considered if a practice consistently does not collect copayments or deductibles? 1) In good faith 2) A bad office 3) Illegal 4) Fraud

Fraud

Always ask for proof of identity if you do not know the person writing a check to avoid accidental acceptance of 1) Accountable checks 2) Fraudulent checks 3) Insurance checks 4) Payroll checks.

Fraudulent checks

When calling a patient about collections, a medical assistant should be 1) Apologetic 2) Friendly 3) Callous 4) Sympathetic

Friendly Sympathetic

If a patient chooses to pay cash, the medical assistant should 1) Give the patient a receipt 2) Let the billing department take care of it 3) Credit the patient's account 4) Count the money carefully.

Give the patient a receipt Credit the patient's account Count the money carefully.

Advance notice of the addition of finance charges or late charges to a patient's past-due account may be given by 1) Calling the patient at home or work 2) Giving the patient a pamphlet describing the office's billing practices 3) Posting a sign at the reception desk 4) Including a note on the statement

Giving the patient a pamphlet describing the office's billing practices Posting a sign at the reception desk Including a note on the statement

A person with financial responsibility for a patient is known as a(n) 1) Advocate 2) Guarantor 3) Obliged 4) Parent

Guarantor

Match the key terms guarantor, statute of limitations, statement, and open-book account with their definitions.

Guarantor - Person financially responsible for the patient Statute of limitations - State law that sets a time limit on when a collection suit on a past-due account can legally be filed Statement - Patient bill Open-book account - Account that is left open to changes that are made on an intermittent basis

Patients who cannot pay their bills are known as 1) Profit cases 2) Hardship cases 3) Responsive cases 4) Adversity cases

Hardship cases

If your office accepts checks, always ask for proof of 1) Liability 2) Payment 3) Insurance 4) Identity

Identity

Which of the following should be listed on a manual statement? 1) CPT codes 2) Payment history 3) Diagnosis codes 4) Age analysis

CPT codes Diagnosis codes

If your medical practice does not have an authorization device for credit card payment, __________. 1) It is sufficient to imprint the credit card voucher with the patient's credit card 2) Omit this step completely if you have seen the patient before 3) Call the credit card company for authorization 4) Insist that the patient pay by cash or check 5) Ask the patient for verification that the payment will go through

Call the credit card company for authorization

Which of the following is a guideline for making a call requesting payment from a patient? 1) Call the patient after 8 a.m. or before 9 p.m. 2) Tell other people in the office about it and ask for suggestions. 3) Threaten to turn the account over to a collection agency, even if you do not plan to do so. 4) Refuse to talk to anyone except the patient, not even the patient's attorney. 5) Pose as a government official to convince the patient to pay.

Call the patient after 8 a.m. or before 9 p.m.

Match the type of check to its definition.

Cashier's Check - A check issued from the bank's account and signed by a bank representative. Money Order - A kind of guaranteed payment. Purchased in banks or a vendor for a fee. Certified Check - A personal or business check that is written and signed by the payer, and the money is already drawn from the account. Voucher Check - A check with a perforated stub attached for record keeping.

Once an account has been turned over to a collection agency, all communication between the patient and the office concerning the debt must 1) Cease 2) Have approval 3) Be recorded 4) Continue

Cease

Superbills list which of the following items? 1) Charges 2) CPT codes 3) ICD-10 codes 4) Patient history

Charges CPT codes ICD-10 codes

You are working at a walk-in outpatient clinic. A young woman who appears to be in her 20s comes in with a large cut on her left arm. When you ask for her insurance information, she says, "I don't need insurance. My father runs this clinic. He'll treat me for free." What should you do? 1) Send a statement for services to the provider's home address. 2) Require the woman to provide proof of insurance before being treated. 3) Check with the provider or office manager. 4) Write "professional courtesy" on the patient's chart. 5) Ask to see her identification to prove that she is the provider's daughter.

Check with the provider or office manager.

Most practices accept several forms of payment, including 1) Checks 2) Bill me later options 3) Credit cards 4) Cash

Checks Credit cards Cash

Which of the following should be a factor when you select an outside collection agency? 1) Permit the agency to handle all cases, regardless of special considerations. 2) Continue to ask the patient for payment even though the collection agency is working on the account. 3) Encourage the agency to sue the patient. 4) Choose an agency only after a patient fails to respond to the final collection letter or has twice broken a promise to pay. 5) Select an agency that will use harsh collection practices.

Choose an agency only after a patient fails to respond to the final collection letter or has twice broken a promise to pay.

Once an account has been turned over to a collection agency, all inquiries must be referred to the 1) Billing department 2) Physician 3) Office manager 4) Collection agency

Collection agency

Credit cannot be denied a person who has exercised rights under the 1) Fair Debt Collection Act 2) Consumer Credit Protection Act 3) Equal Credit Opportunity Act 4) Consumerism Act

Consumer Credit Protection Act

A bank-issued check that allows the depositor to withdraw funds from his account only, is called a: 1) Counter check 2) Certified check 3) Traveler's check 4) Cashier's check

Counter check

After posting the payments, the account balance will be a negative number, known as: 1) Credit balance 2) Charges 3) Balance 4) Overpayment

Credit balance

Which of the following is a company that provides information about the creditworthiness of someone seeking credit? 1) Lending agency 2) Supervising bureau 3) Credit bureau 4) Chamber agency

Credit bureau

Gathering a patient's name, address, telephone number, and Social Security number can help you verify the patient's employment information and generate a(n) 1) Insurance report 2) Truth in lending report 3) Good Samaritan report 4) Credit bureau report

Credit bureau report

The date of last activity on the account, the description of actions taken to collect the debt, and response received to collection attempts are pieces of information that must be given to the 1) Patient's accountant 2) Billing department 3) Patient's spouse 4) Credit collection agency

Credit collection agency

A common billing system that bills each patient only once a month but spreads the work of billing over the month is __________. 1) Using superbills 2) Independent billing services 3) Cycle billing 4) Open-book accounting 5) Employing collection agencies

Cycle billing

The information on each patient's ledger card must match the 1) Daily log 2) Medical record 3) Day's transactions 4) Deposit slip

Daily log

Which of the following information about a patient should a medical assistant provide to the collection agency? 1) Date of the last payment or charge on the account 2) Impression of the patient's ability to pay 3) Patient's income 4) Patient's educational level 5) Names of other providers the patient has seen

Date of the last payment or charge on the account

If there are insufficient funds in a patient's bank account, the transaction will be refused and other arrangements can be made immediately. This is an advantage to the medical practice when the patient uses a 1) Credit card 2) Cashier's check 3) Money order 4) Debit card

Debit card

Federal and state laws govern 1) Debt collection 2) Doctor visits 3) Payment plans 4) Insurance payments

Debt collection

When a check is returned due to NSF, what is the first action a medical assistant should take? 1) Deduct it from the patient's account 2) Add it to the patient's account 3) Deduct it from the office checking account 4) Add it back into the office checking account

Deduct it from the office checking account

What should you always obtain when you make a deposit? 1) Withdrawal receipt 2) Deposit receipt 3) More deposit slips 4) Credit receipt

Deposit receipt

A written agreement of the terms of payment between the patient and the practitioner is a(n) __________. 1) Accounts receivable statement 2) Statement of account 3) Superbill 4) Disclosure statement 5) Credit statement

Disclosure statement

Which of the following is a written description of the agreed terms of payment? 1) Disclosure statement 2) Physician statement 3) Lending bureau statement 4) Patient statement

Disclosure statement

The American Medical Association (AMA) suggests several guidelines for practices accepting credit card payments. Which of the following fall under these guidelines? 1) Do not advertise outside the office that the practice accepts credit cards. 2) Encourage patients to use their credit cards. 3) Do not set higher fees for patients who pay with a credit card. 4) Purchase the most expensive credit card machine.

Do not advertise outside the office that the practice accepts credit cards. Do not set higher fees for patients who pay with a credit card.

If a medical practice accepts credit card payments, the American Medical Association (AMA) suggests the use of which guideline? 1) Set the fees higher for patients who pay by credit card. 2) Tell patients they may only use credit cards if they do not have cash. 3) Allow only a select group of patients to use credit cards for payment. 4) Do not encourage patients to use credit cards for payment. 5) Advertise outside the office that the practice accepts credit cards.

Do not encourage patients to use credit cards for payment.

Select all suggestions to assist in maintaining accuracy in bookkeeping and banking for the medical office. 1) Use red pens 2) Double check your work 3) Perform bookkeeping once a year 4) Be organized 5) Be consistent

Double check your work Be organized Be consistent

Check marks help keep your reconciling organized and should be placed on 1) Each redeemed check recorded on the statement 2) Each receipt recorded on the statement. 3) Each check not on the statement 4) Each deposit recorded in the checkbook

Each redeemed check recorded on the statement Each receipt recorded on the statement. Each deposit recorded in the checkbook

Which of the following types of patients will likely have the greatest challenges paying medical bills? 1) Insured 2) Chronically ill 3) Employed 4) Elderly 5) Poor 6) Uninsured

Elderly Poor Uninsured

How do payers and offices prefer to receive their insurance payments? 1) In person 2) In cash 3) Electronically 4) Manually received

Electronically

Elena is a pregnant 16-year-old patient whose parents are divorced. She has legally left her mothers' home and set up housekeeping with her boyfriend, Alan. They plan to be married soon, but in the meantime, Elena shows you proof that she is "emancipated." Who is responsible for payment for Elena's treatment? 1) Elena's mother 2) Elena 3) Alan 4) Elena's father 5) Alan's parents

Elena

A minor is legally responsible for medical bills if 1) Abandoned 2) Endangered 3) Emancipated 4) Incarcerated

Emancipated

The Telephone Consumer Protection Act of 1991 prohibits autodialed calls to 1) Emergency service providers. 2) Patients' places of residence with prior permission 3) Patients' hospital rooms 4) Cellular and paging numbers

Emergency service providers. Patients' hospital rooms Cellular and paging numbers

What should be in the patient's financial file before it is turned over to the collection agency? Select all that apply. 1) Employer name 2) Total amount of debt 3) Place of birth 4) Any patient responses to calls 5) Last known phone number 6) Name of spouse, if applicable

Employer name Total amount of debt Any patient responses to calls Last known phone number Name of spouse, if applicable

A superbill is also known as a(n) 1) Age analysis 2) Encounter form 3) Billing analysis 4) Statement form

Encounter form

In step seven of reconciling a bank statement, you should record the ______________ balance found in the office checkbook in the appropriate area of the reconciliation worksheet. 1) Beginning 2) Reconciliation 3) Started 4) Ending

Ending

Accepting a check for payment is called: 1) Certifying 2) Deposit 3) Endorsement 4) Crediting

Endorsement

An accounts receivable policy __________. 1) Ensures that the practice will have sufficient income to cover expected expenses 2) Ensures that patients will have sufficient funds to pay for services 3) Decreases the provider's overall cash flow 4) Collects payments for a provider who has a large number of patients who do not pay their bills 5) Protects patients from being sued by the provider for failure to pay

Ensures that the practice will have sufficient income to cover expected expenses

Which act states that credit arrangements may not be denied based on a patient's sex, race, religion, national origin, marital status, or age? 1) Fair Practice Act 2) Fair Debt Collection Act 3) Equal Credit Opportunity Act 4) Consumerism Act

Equal Credit Opportunity Act

Which of the following prevents creditors from discriminating against applicants on the basis of age, sex, race, religion, marital status, or income? 1) Fair Debt Collection Practices Act 2) Fair Credit Reporting Act 3) Equal Credit Opportunity Act 4) Telephone Consumer Protection Act 5) Truth in Lending Act

Equal Credit Opportunity Act

Which of the following states that creditors may not discriminate against an applicant because he or she receives public assistance? 1) Equal Credit Opportunity Act 2) Telephone Consumer Protection Act 3) Truth in Lending Act 4) Fair Credit Reporting Act 5) Fair Debt Collection Practices Act

Equal Credit Opportunity Act

Which of the following laws govern credit and collection procedures? 1) Equal Credit Opportunity Act 2) Fair Debt Collection Act 3) Truth in Lending Act 4) Easy Reporting Act

Equal Credit Opportunity Act Fair Debt Collection Act Truth in Lending Act

Criteria for hardship cases include patients who __________. 1) Receive professional courtesy from the medical office 2) Have not received an invoice 3) May be poor, underinsured, or elderly and on a limited income 4) Refuse to pay the balance they owe 5) Have moved without leaving a forwarding address

May be poor, underinsured, or elderly and on a limited income

Which of the following requires physicians to provide care to individuals who need it, regardless of their ability to pay? 1) Medical ethics 2) County law 3) Federal law 4) Lending Act

Medical ethics

The superbill should have an appropriate diagnosis for each procedure to support 1) Payment 2) Medical necessity 3) Accurate billing 4) Medical care

Medical necessity

Doing an age analysis is an effort to collect outstanding accounts, because it becomes 1) More difficult to collect balances 2) A duty for the office manager 3) A consideration of a care 4) Less difficult to collect balances

More difficult to collect balances

For a written-contract account, the payment agreement often states that the patient will pay the bill in 1) More than 2 installments 2) Only 1 payment 3) More than 4 installments 4) More than 3 installments

More than 4 installments

The abbreviation for nonsufficient funds is: 1) NSFF 2) NSF 3) NFS 4) SF

NSF

Computerized offices post payments to a patient's account using 1) Office billing hardware. 2) Office billing software. 3) A pegboard. 4) A calculator.

Office billing software.

What is a business checking account commonly used for? 1) Office expenses 2) Payroll 3) Interest-earning 4) Personal expenses

Office expenses

How often is bank record reconciliation done in most practices? 1) Once a week 2) Once a day 3) Once a year 4) Once a month

Once a month

A written-contract account is __________. 1) One that is open to charges made occasionally 2) One in which the practitioner and patient sign an agreement for payment installments 3) One in which the practitioner is requested by the courts to examine a specific patient 4) An account with only one charge 5) The total of the outstanding balance on the patient ledger cards

One in which the practitioner and patient sign an agreement for payment installments

When is it appropriate for a medical provider to assess finance charges or late charges on past-due accounts? 1) After the patient has verbalized a lack of intent to pay 2) After the account has been sent to a collection agency 3) Only when the patient is notified in advance 4) After the patient has ignored two bills 5) When the provider feels it is necessary

Only when the patient is notified in advance

An account that is open to charges made occasionally as needed is called a(n) __________. 1) Collection account 2) Single-entry account 3) Written-contract account 4) Open-book account 5) Account payable

Open-book account

Most of a practitioner's long-standing patients have which type of account? 1) Accounts payable account 2) Open-book account 3) Written-contract account 4) Single-entry account 5) Collection account

Open-book account

Which of the following accounts is left open to charges that are made on an intermittent basis? 1) Double-entry account 2) Open-book account 3) Written-contract account 4) Single-entry account

Open-book account

Which of the following accounts uses the last payment date or the date of the last charge for each illness as the start date to determine the time limit for that specific debt? 1) Closed-book account 2) Single-entry account 3) Open-book account 4) Double-book account

Open-book account

To which of the following patients would a medical provider most likely render treatment as a professional courtesy? 1) Cancer patients 2) Elderly patients 3) Children 4) Any patient who cannot pay 5) Other healthcare professionals

Other healthcare professionals

The combination of insurance payments and patient payments exceeds the allowed charges, This is known as: 1) Overpayment 2) Payment 3) Posting 4) Collection

Overpayment

What reminds you to add the payment to the balance, instead of subtracting it as you usually would do? 1) Parentheses 2) Commas 3) Brackets 4) Right slash

Parentheses

Which of the following should be included on a ledger card? 1) Patient medical number 2) Patient name 3) Insurance carrier policy number 4) Patient address

Patient name Insurance carrier policy number Patient address

Which of the following are needed to perform a credit check? 1) Patient's Social Security number 2) Patient's telephone number 3) Patient's address 4) Patient's place of birth

Patient's Social Security number Patient's telephone number Patient's address

What information in a patient's financial file should be verified before turning it over to a collection agency? 1) Patient's last known address 2) Patient's credit history 3) Description of office actions to collect the debt 4) Total amount of debt

Patient's last known address Description of office actions to collect the debt Total amount of debt

Which of the following are common collection problems? 1) Patients who have 2 insurance plans 2) Patients who pay their balances in full with a credit card 3) Patients who move without leaving a forwarding address 4) Patients who cannot pay

Patients who move without leaving a forwarding address Patients who cannot pay

In step one of setting up a disbursement journal, you are required to have column headings for each check. 1) Payee's name 2) Check amount 3) Date 4) Refund amount

Payee's name Check amount Date

The person who writes the check is known as the 1) Bookkeeper 2) Collector 3) Negotiator 4) Payer

Payer

List the three main groups that accounts payable fall into. 1) Payments for supplies 2) Taxes 3) Patient payments 4) Payroll

Payments for supplies Taxes Payroll

Which of the following accounts payable is typically the largest in a medical office? 1) Licensing for physicians and staff 2) Payment for practice-related products and services 3) Taxes owed to federal, state, and local agencies 4) Payment for supplies and equipment 5) Payroll

Payroll

What do most offices do to notify the patient, they have an immediate patient payment system? 1) Tell them when they call 2) Post a sign 3) Call them 4) Nothing

Post a sign

After endorsing the check the medical assistant should 1) Post the payment in the cash box. 2) Post the payment to the patient ledger card. 3) Post the payment to the running list of checks. 4) Put in the cash drawer

Post the payment to the patient ledger card.

The provider will fill in what on the superbill? 1) Procedures provided 2) Payment due 3) Diagnosis 4) Return visit

Procedures provided Diagnosis Return visit

What procedure needs to be followed before you can process a refund to the patient? 1) Post a NSF check 2) Process a payment resulting in a credit 3) Reconcile the bank statement 4) Prepare an age analysis

Process a payment resulting in a credit

A doctor may treat some patients free of charge or for just the amount covered by the patient's insurance, which is a practice known as 1) Good manners 2) Being discourteous 3) Professional courtesy 4) A freebie

Professional courtesy

Payment by credit card for a medical practice __________. 1) Increases the complexity of preparing statements 2) Provides prompt payment from the credit card company 3) Decreases the cash flow in the office 4) Requires extra staff to process credit card charges 5) Increases the time spent on paperwork

Provides prompt payment from the credit card company

What is an administrative task that involves comparing the office financial records, the checkbook, or disbursements journal? 1) Statement checking 2) Reconciliation 3) Depositing 4) Accounting

Reconciliation

When taking a cash payment, how should a medical assistant credit the patient's account using a paper system? 1) Verbally tell the patient it's taken care of. 2) Credit the patient's account on the computerized system. 3) Record the payment on the patient's ledger card. 4) Record the payment in the patient's medical record.

Record the payment on the patient's ledger card.

Debit cards ___________________ transfer the funds from the patient's bank account to the practice account. 1) Immediately 2) Take one day to 3) Never 4) Take two days to

Immediately

What type of endorsement specifies how the check may be redeemed? 1) Restrictive endorsement 2) Qualified endorsement 3) Third-party endorsement 4) Special endorsement

Restrictive endorsement

What might the software ask you to enter, that appear on the current bank statement, such as 1) Deposits not on the previous bank statement 2) Checks not on the previous bank statement 3) Patient payments 4) Service charges

Service charges

A person who is in town on vacation goes to a medical provider with symptoms of food poisoning. The type of account to set up for this patient is a(n) __________. 1) Collection account 2) Written-contract account 3) Account payable 4) Single-entry account 5) Open-book account

Single-entry account

An account consisting of only 1 charge is referred to as a(n) 1) Double-entry account 2) Open-book account 3) Written contract account 4) Single-entry account

Single-entry account

Some patient accounts remain unpaid because patients have moved without leaving a forwarding address. This is known as a 1) Bail 2) Wobble 3) Skip 4) Jump

Skip

Some patient accounts remain unpaid because patients have moved without leaving a forwarding address. This is known as a 1) Jump 2) Skip 3) Bail 4) Wobble

Skip

In cycle billing, the accounts are split into groups and statement mailing dates are 1) Staggered 2) Computerized 3) Activated 4) Not staggered

Staggered

The statute of limitations is a ______ law that sets a time limit on when a collection suit can legally be filed on which of the following accounts? 1) City 2) Universal 3) State 4) Federal

State

Which of the following laws govern debt collection? 1) County 2) State 3) Federal 4) City

State Federal

Which of the following should include the guarantor's name, previous balances, an itemized list of services and charges, payments from the patient or insurance during the month, and the total balance due? 1) Allowances 2) Narrative 3) Receipt 4) Statements

Statements

Which of the following is a law that sets a time limit on when a collection suit on a past-due account can legally be filed? 1) Medical authorization 2) Statute of limitations 3) Legal requirement 4) Truth in lending

Statute of limitations

A credit bureau collects information about an individual's payment history on 1) Cash payments 2) Student loans 3) Debit cards 4) Credit cards

Student loans Credit cards

List the advantages of using electronic banking. 1) Improve productivity 2) Improve cash flow 3) Improve accuracy 4) Improve patient care

Improve productivity Improve cash flow Improve accuracy

According to the AMA, it is acceptable to assess finance charges or late charges on past-due accounts if the patient is notified 1) In advance 2) By the physician 3) When it happens 4) At work

In advance

Give a copy of the signed agreement to the patient and keep a copy 1) In the patient's medical record 2) In the office's cloud 3) In the public files 4) In the patient's financial record

In the patient's financial record

A superbill __________. 1) Is a signed agreement between the provider and the patient for payment 2) Consists of a copy of the patient's ledger card that is mailed to the patient 3) Includes the charges and procedure codes for each service rendered on that day 4) Is the original record of the provider's services and charges for those services 5) Bills each patient only once a month but spreads the work of billing over the month

Includes the charges and procedure codes for each service rendered on that day

What does accounts receivable reflect on the practice? 1) Income 2) Patient care 3) Success 4) Neatness

Income

If a practitioner decides not to extend credit to a patient, what must be done according to the Fair Credit Reporting Act? 1) Report the patient's lack of creditworthiness to the state's credit monitoring service. 2) Inform the patient in writing why credit was denied. 3) Call the patient and tell him his bill must be paid in full immediately. 4) Avoid discussing the issue of credit with the patient to avoid embarrassment. 5) Explain to the patient that you will be unable to extend credit.

Inform the patient in writing why credit was denied.

Once an account is 60 days past due, it is advisable to send the patient a 1) Firm letter 2) Initial letter of inquiry 3) Final letter 4) Lawyer-advisement letter

Initial letter of inquiry

Which of the following is true regarding a statement? 1) It is paperwork sent to patients to inform them of payment or balance due. 2) It is the usual fee a provider charges for a service. 3) It is a billing system that bills each patient once a month but staggers the due dates. 4) It provides a price list for the medical practice. 5) It provides a reminder from the medical office that the patient is due for a yearly exam.

It is paperwork sent to patients to inform them of payment or balance due.

The advantages of accepting credit cards in a medical practice are 1) It provides prompt payment from the credit card company. 2) It reduces the amount of time and money spent on preparing and mailing statements. 3) It increases cash flow. 4) It increases expenses in the medical office.

It provides prompt payment from the credit card company. It reduces the amount of time and money spent on preparing and mailing statements. It increases cash flow.

What is the function of the "Balance Checkbook"? 1) It sends out the checks monthly 2) It displays the checkbook 3) It calculates deposits each day 4) It reconciles the monthly bank statement

It reconciles the monthly bank statement

Which of the following are benefits of having a patient pay the bill at the time of service? 1) It lets the medical assistant use the new credit card machine. 2) It saves the cost of preparing and mailing statement. 3) It brings income into the practice faster. 4) It lets the patient have an outstanding balance.

It saves the cost of preparing and mailing statement. It brings income into the practice faster.

What is an advantage of electronic bookkeeping? 1) It is a software program 2) It saves time 3) It saves money 4) There is not an advantage

It saves time

What happens if an error goes undetected at the first link of bookkeeping documentation? 1) It will be carried through all other links in the chain. 2) It will be found at the end and corrected. 3) Nothing, it always balances out. 4) It will be found on the next link and corrected.

It will be carried through all other links in the chain.

Which of the following types of practices use cycle billing? 1) Small practices 2) HMOs 3) Private hospitals 4) Large practices

Large practices

Sort dollar bills by denomination, from 1) Smallest to largest 2) Largest to smallest

Largest to smallest

Patient financial records are considered 1) Top secret 2) Public record 3) Legal documents 4) Part of the medical record

Legal documents

One way to avoid unknowingly violating the Telephone Consumer Protection Act of 1991 is to 1) Limit all contact with patients 2) Call patients only when it is convenient for you 3) Limit calls to patients to the hours between 8 a.m. and 9 p.m. 4) Never call patients at home or work

Limit calls to patients to the hours between 8 a.m. and 9 p.m.

What type of numbers are printed on the deposit slips? 1) ICR numbers 2) Medical record numbers 3) MICR numbers 4) Deposit numbers

MICR numbers

If you are depositing a money order, what should be notated on the deposit slip? 1) MO 2) Order 3) Certified check 4) Money order

MO Money order

Which of the following are common banking tasks. 1) Shredding banking documents 2) Making deposits 3) Reconciling bank statements 4) Balancing of individual accounts

Making deposits Reconciling bank statements Balancing of individual accounts

Which of the following systems uses a pegboard that allows you to record the payment on the patient's ledger card? 1) Computerized office 2) Accounts receivable 3) Manual paper system 4) Accounts payable

Manual paper system

List all the reasons a deposit should be done as often as possible. 1) To reduce cash 2) To reduce inaccurate recordings 3) To reduce loss 4) To reduce theft

To reduce inaccurate recordings To reduce loss To reduce theft

When completing a Truth in Lending Statement, which of the following should be included. 1) Total amount to be financed 2) Patient name 3) Finance charge 4) Date payments are due 5) Bank to be paid 6) Price for services

Total amount to be financed Patient name Finance charge Date payments are due Price for services

Watching for changes in recording disbursements is called 1) Disbursements 2) Tracking 3) Summaries 4) Receivables

Tracking

When writing a check electronically you will record the ________________ number, as proof of the payment sent. 1) Transaction 2) Account 3) Deposit 4) Withdrawal

Transaction

If a physician and patient make a bilateral agreement that includes more than 4 payments, or if the practice assesses finance charges, the agreement is subject to the requirements of the 1) Fair Credit Law 2) Fair Debt Collection Practice Act 3) Truth in Lending Act 4) Payment Act

Truth in Lending Act

Which of the following comes under Regulation Z of the Consumer Credit Protection Act? 1) Financial Payment Act 2) Fair Lending Act 3) Truth in Lending Act 4) Patient Disclosure Act

Truth in Lending Act

Which of the following requires creditors to provide applicants with accurate and complete credit costs and terms? 1) Equal Credit Opportunity Act 2) Fair Debt Collection Practices Act 3) Telephone Consumer Protection Act 4) Truth in Lending Act 5) Fair Credit Reporting Act

Truth in Lending Act

Accounts that are not paid by patients and the office cannot collect on, are known as: 1) Collectable 2) Paid 3) Debt 4) Uncollectable

Uncollectable

When the physician or office manager says that a patient balance should be written off to relieve the AR of money that will not be received, the account is deemed to be 1) Uncollectable 2) Collectable 3) Useless 4) Costly

Uncollectable

The practice will adjust the remaining balance off the account if an account is found to be never collected, which is called a(n): 1) Paid account 2) Collectable account 3) Uncollectable account 4) Debit account

Uncollectable account

The goal of the Fair Debt Collection Practices Act of 1977 is to eliminate abusive, deceptive, or 1) Collection letters 2) Fair and just practices 3) Unfair debt collection practices 4) Collection calls

Unfair debt collection practices

A payment arrangement in which the provider decides a patient will be billed every month for the full amount owed and should make whatever payment is possible each month is a(n) __________. 1) Written-contract agreement 2) Unilateral agreement 3) Open-book account 4) Mutual agreement 5) Hardship agreement

Unilateral agreement

Which type of agreement is NOT regulated by the Truth in Lending Act? 1) Separate agreement 2) Nonextended agreement 3) Unilateral agreement 4) Triple agreement

Unilateral agreement

What law has provisions that do not apply to medical practices? 1) TLA 2) FCRA 3) TCPA 4) FDCPA

TCPA

Which of the following protects telephone subscribers from unwanted telephone solicitations? 1) Fair Debt Collection Practices Act 2) Telephone Consumer Protection Act 3) Equal Credit Opportunity Act 4) Truth in Lending Act 5) Fair Credit Reporting Act

Telephone Consumer Protection Act

Which act protects telephone subscribers from unwanted telephone solicitations, commonly known as telemarketing? 1) Telemarketing Laws Act 2) Telecommunication Privilege Act 3) Telephone Consumer Rights Act 4) Telephone Consumer Protection Act of 1991

Telephone Consumer Protection Act of 1991

A characteristic of a mutual agreement is that __________. 1) It is never regulated by the Truth in Lending Act 2) Finance charges are always applied 3) It is generally set up by a collection agency 4) The provider and the patient agree on how much each month's payment will be 5) The patient is billed for payment in full monthly, but may make whatever payment is possible

The provider and the patient agree on how much each month's payment will be

List the differences when using electronic banking compared to traditional methods. 1) The software has a password to protect the checkbook and banking forms. 2) The software calculates the balance for you. 3) The software can send thank you letters to patients, who pay on time. 4) The software does reconciling for you.

The software has a password to protect the checkbook and banking forms. The software calculates the balance for you. The software does reconciling for you.

Giving patients several payment options in the office encourages the payment at 1) The time of service. 2) Their convenience. 3) The end of the week. 4) The next office visit.

The time of service.

Which of the following are benefits of accounts receivable insurance policies? 1) They pay to re-create any records that are lost. 2) They can protect the practice's cash flow. 3) They can protect the practice if its AR records are destroyed. 4) They can pay when a large number of patients do not.

They can protect the practice's cash flow. They can protect the practice if its AR records are destroyed. They can pay when a large number of patients do not.

What is an advantage of electronic deposits? 1) There is not an advantage 2) They save time 3) There are no errors 4) The payment is higher

They save time

According to the Equal Credit Opportunity Act, how much will a practice have to pay if a credit applicant joins and wins a class action lawsuit against the practice? 1) $150,000 2) $100,000 3) $250,000 4) 1/4% of the practice's net worth 5) Up to $500,000 or 1% of the practice's net worth

Up to $500,000 or 1% of the practice's net worth

What should you use to avoid losing your place when bookkeeping? 1) Use red pens 2) Use markers 3) Use pencils 4) Have straight columns

Use markers

Which of the following is an account in which the doctor and the patient sign an agreement regarding the treatment and the payment agreement? 1) Written-contract account 2) Open-book account 3) Double-entry account 4) Single-contract account

Written-contract account

The medical assistant should strive for _________ accuracy in bookkeeping. 1) 100% 2) 95% 3) 99% 4) 50%

100%

If an account is __________ days past due, send a letter explaining that unless you hear from the patient by a specific date, the account will be given to a specific collection agency for collection. 1) 30 2) 90 3) 15 4) 60 5) 120

120

Patients who are _____ or over are legally considered to be their own guarantor. 1) 17 2) 19 3) 18 4) 21

18

The first phone call to a patient should be made if payment has not been received after 1) 30-45 days 2) 120 days 3) 30-60 days 4) 60-90 days

30-45 days

When accounts are under ________ days, they should be marked as "no action to be taken at this time." 1) 10 2) 31 3) 90 4) 30

31

How many pieces of information should a disclosure statement have? 1) 2 2) 8 3) 6 4) 4

6

A letter that has a friendly, "we want to help" tone and gives the patient options but makes it clear that the patient must take some sort of action, is most appropriately sent when the account is __________ days past due. 1) 120 2) 90 3) 30 4) 15 5) 60

60

An initial letter of inquiry is generally sent when an account is __________ days past due. 1) 120 2) 90 3) 60 4) 15 5) 30

60

A collection letter containing stronger wording that asks the patient to specify when the amount will be paid and to contact the office to make payment arrangements may be sent when an account is __________ days past due. 1) 30 2) 120 3) 90 4) 60 5) 15

90

If an account is ____ days past due, the collection letter can contain stronger wording. 1) 60 2) 120 3) 30 4) 90

90

A statement of income and expense highlights the practice's profitability is called 1) A bank statement 2) A financial record 3) A bookkeeping statement 4) A profit-and-loss statement

A profit-and-loss statement

What is attached to the patient chart for the provider to check off services provided which produce charges? 1) A bill 2) A statement 3) A ledger 4) A superbill

A superbill

An example of a single-entry account is 1) A patient who comes annually for a checkup 2) A vacationer in the area that comes in to see the doctor for cold symptoms 3) A patient who has been established for 5 years 4) The doctor's wife, who has been in multiple times

A vacationer in the area that comes in to see the doctor for cold symptoms

When you select "Record Deposits" a message will prompt you to enter 1) The amount of the check 2) The practice's name 3) The writer's name 4) The ABA number

The amount of the check The writer's name The ABA number

Which of the following information should be included on a statement? 1) The patient's income 2) The provider's credentials 3) The patient's occupation and place of employment 4) The patient's credit card information 5) The balance from the previous month and an itemized list of charges

The balance from the previous month and an itemized list of charges

What information is included in the "Display Checkbook"? Select all that apply. 1) The check number 2) The ABA number 3) The date 4) The amount 5) The payee

The check number The date The amount The payee

What does the checkbook display function allow you to review? 1) The checkbook register 2) The checkbook receipts 3) The checks 4) The reconciliations

The checkbook register

When using an electronic bookkeeping system, which of the following help save time? 1) The computer automatically performs mathematical calculations. 2) The software has built in tax tables. 3) The software has a pegboard built in. 4) The computer performs repetitive tasks.

The computer automatically performs mathematical calculations. The software has built in tax tables. The computer performs repetitive tasks.

Adding the fee of the agency should not be added to the patient's account as it is 1) The cost of doing business 2) Only allowed if the patient signed a contract 3) The oath the provider took

The cost of doing business

The major disadvantage of accepting credit cards is 1) Balances can't be paid in full 2) The credit card company deducts a minimum of 20% for its collection service 3) The credit card company deducts a percentage of each transaction for its collection service 4) Credit card machines are too expensive

The credit card company deducts a percentage of each transaction for its collection service

Which of the following is an accurate statement about open-book accounts? 1) The patient and provider sign an agreement for payment in more than one installment. 2) The last date of payment or charge for each illness is used as the starting date for determining the time limit on that specific debt. 3) They are regulated by the Truth in Lending Act. 4) They are accounts with only one charge. 5) The statute of limitations does not apply to open-book accounts.

The last date of payment or charge for each illness is used as the starting date for determining the time limit on that specific debt.

What can you ask a third party when you find the patient is no longer at that address? 1) The new phone number 2) For payment 3) The new address 4) For their information

The new phone number The new address

Who can give authorization for a patient account to be deemed not collectable? 1) The coder 2) The office manager 3) The billing clerk 4) The physician

The office manager The physician

A copy of the superbill should be placed in or given to 1) The patient 2) The insurer 3) The referring provider 4) The practice records.

The patient The referring provider The practice records.