bookkeeping mundy p.6
Which of the following skills will a medical office assistant need to perform accounting tasks?
All of the above
Why is it necessary to reconcile the bank statement with the office check ledger?
All of the above
On what date was John Rose last seen by the physician?
April 17
Ideally, when should patient payments be received?
At the time of service
Which kind of endorsement is the most risky?
Blank endorsement
Which of the following type(s) of check is guaranteed not to bounce?
Both a certified check and a money order
Ideally, how often should money received by the office be deposited?
Daily
Which manual bookkeeping system has a built-in way to check for errors?
Double-entry system
When should a receipt be issued to a patient?
Every time the patient makes a payment in the office
Patients will most likely already understand the medical office's coding system.
False
The single-entry system requires each entry to be entered twice.
False
What must assistants do before accepting a check from a new patient?
Make sure the patients identification matches the information on the check.
Which of the following attitudes is most acceptable for an assistant to have when discussing finances with a patient?
Respectful and understanding
Which kind of endorsement is most common in a business setting?
Restrictive endorsement
Which of the following is the best option for dealing with long-term delinquent accounts?
Send the account to a third-party collection agency.
Which of the following necessary blanks on the check is incomplete?
The amount of the check, written in words
Which of the following blank spaces on a check does NOT have to be filled in to be processed by the bank?
The for/memo line
Who is responsible for recording disbursements?
The medical office assistant
Who can a medical office assistant speak to about a patient's unpaid bill?
The patient and the patient's guarantor
What does it mean to extend credit to a patient?
The patient can pay for service in installments.
John is at the reception desk checking out after his appointment with Dr. Bowman. He does not have cash, so he offers to sign over his payroll check. What kind of check would this be?
Third-party check
What is the purpose of the HIPAA Privacy Rule?
To protect the privacy of patient information
Why might an office divide patient billing into several cycles per month?
To stabilize
A patient's new balance on the daysheet and his new balance on the patient ledger may be different.
false
Which patient received an EKG?
john
Your medical office just purchased new computers for the reception area. The total cost came to $5,500. The initial payment made was $1,000. The office still owes the remainder of the bill. Which of the following equations accurately shows the asset, liability, and equity amounts?
$5,500 (assets) = $4,500 (liabilities) + $1,000 (equity)
What was the fee for Brian Rose's last visit?
40
How much is the Rose family's current outstanding balance?
60
Which of the following definitions best describes a write-off?
A cancellation of a fee
To place money into a bank account is to make ____.
A deposit
To which of the following patients might a physician extend professional courtesy?
A fellow physician
Which of the following is the least confrontational way to approach a patient about an unpaid bill?
A letter
What is a fee schedule?
A list of specified fees a physician charges for services
Which of the following definitions best describes a bank statement?
A monthly summary of a bank account
Which of the following best describes a superbill?
A patient invoice listing services performed in one visit
Which of the following situations would make a check invalid?
All of the above
What is the name of a patient bill that records services and charges for a specific time period?
An invoice
Which of the following definitions best describes a deposit slip?
An itemized memo of funds to be posted to a bank account
Which of the following best defines the term "disbursement"?
An outgoing amount of money from the office
Accounts receivable are considered ____.
Assets
Which of the following is the correct equation for determining equity?
Assets - Liabilities = Equity
Why are insurance adjustments often necessary?
Because medical offices and insurance companies have contracts for reduced charges
If a patient plans to use a credit or debit card as payment, the physician is allowed to charge a higher fee for the patient's service.
False
If an office uses automatic withdrawal to pay bills, those payment amounts do NOT need to be posted on any office ledgers.
False
It is okay to complete a check in pencil as long as it is dark enough to read.
False
It is okay to threaten a patient who has not paid with legal action, even if this is an action the office is not currently planning to take.
False
The ending balance on the bank statement will always be the same as the current balance in the check ledger.
False
When a patient makes a payment to a collection agency, the entire amount of that payment will be sent to the medical office.
False
When a patient makes a payment, what kind of accounting transaction is this for the medical office?
Income
What is the first step an office assistant should take after receiving an NSF check?
Inform the check-writer that the check has been returned.
Did Jenny follow the rules of the Fair Debt Collection Practices Act?
Yes
If Mr. Fryer wants you to send him a refund check, should you still post his entire payment on the daysheet and on his ledger?
Yes
If an office uses a computerized bookkeeping system, understanding manual bookkeeping is unnecessary.
false
Payments received by mail do not have to be posted to the patient ledger.
false
In which of the following ledgers would an assistant look to find a specific patient's current outstanding balance?
ledger patient
Patient payment information entered on the daysheet must also be posted on the patient ledger.
true
When should daysheets be updated?
As each transaction takes place
Patients will receive a monthly bill from the medical practice even after the account has been turned over to a third-party collection agency.
False
Paying the office's utility bill is an example of income.
False
Reconciling the bank statement is optional.
False
If a physician treats a fellow health care worker and does not collect the remaining fee after that worker's insurance contribution is received, this is what kind of adjustment?
Professional courtesy
Which of these best describes a check endorsement?
The payee's signature on the back of the check
Who decides when and to whom professional courtesy is extended?
The physician
Which of the following methods of payment is least likely to be accepted at any medical office?
Third-party check
The medical office assistant is responsible for helping patients understand their invoice.
True
When should a patient be given an estimate of how much the fee for service might be?
When the appointment is set
Which of the following definitions best describes the term "guarantor"?
A person responsible for paying a patient's bill
Which of the following definitions best describes an aging report?
A record of all unpaid patient accounts, organized by date of service or date of first bill
Which of the following best describes a purchase order?
A standardized form to request an order from a vendor
What is an event that affects the financial position of a company and can be reliably recorded?
Accounting transaction
In which of the following ledgers would an assistant look to find information on all the debts owed by the medical office?
Accounts payable ledger
What is the term for money owed to a company or office that has not yet been received?
Accounts receivable
In the previous dialogue, how did Jenny, the office assistant, confirm that she was speaking with the correct patient?
All of the above
Which of these is the most appropriate way to make corrections in a manual bookkeeping system?
Draw one line through the mistake and enter the correction above.
Which of the following is another term for "superbill"?
Encounter form
Why is the pegboard system also called the "write-it-once" method?
Entries are posted to several records at once.
In which of the following situations would the Truth in Lending Act apply?
If a patient sets up a payment plan with five installments
Which of the following is a disadvantage of the single-entry system?
It does not include a built-in quality check.
What should be done if a mistake is made while filling out a check?
It is okay to complete a check in pencil as long as it is dark enough to read.
Why does the office assistant need a copy of the fee schedule when discussing patient invoices?
It lists the charges for each service
What purpose does the Truth in Lending Act serve?
It requires physicians to disclose interest charges if any are charged.
What should be done with the old NSF check after an alternate form of payment has arrived and been fully processed?
It should be destroyed.
Is anything written on the Memo line of this check?
No
When stamped on a check, what does NSF stand for?
Non-sufficient funds
How often should patients receive a billing statement?
Once per month
Which of the following terms refers to the person who writes the check?
Payor
What kind of check is most commonly received for payment?
Personal check
Terrance owes Dr. Ling's office $15.00 as a co-payment, but he doesn't get paid until tomorrow. He offers to write the check using tomorrow's date. What kind of check would this be?
Post-dated check
Which of the following endorsements specifies the person to whom the endorser is making the check payable?
Special endorsement
Which of the following pieces of information on a bank statement would be found in the Activity Synopsis section?
Total amount of money deposited for the month
A check stub, or register, should be filled out every time a check is written.
True
A patient's financial records are protected under HIPAA regulations.
True
A physician might extend professional courtesy to the medical office assistant.
True
Medical office assistants may be required to perform accounting tasks.
True
Which of the following best describes the term "professional courtesy"?
A fee discount for health care workers
How much was patient Amir Fayed charged for today's service?
$75.00
In which of the following ledgers must an outstanding patient balance be recorded?
Both the patient ledger and the accounts receivable ledger
In an office with a computerized practice-management system, patient invoices still must be written out by hand.
False
It is acceptable to send personal information to patients by e-mail.
False
Why is it important to keep an up-to-date inventory of all administrative and clinical supplies in the office?
To avoid making unnecessary purchases or running out of important supplies
Cash and checks received from patients as payment should be kept in the same place.
True
It is illegal to call a patient about an unpaid bill at 11:00 PM.
True
It is okay to mail a check as long as the check is not visible from outside the envelope.
True
