Ch. 32 & 33 - Study Guide
the petty cash fund is established by writing a check payable to "petty cash" or:
"cash"
If the petty cash fund was originally $50, and it has been depleted down to $3, a new petty cash check should be written for:
$47
If your receipts for 4 months add up to $200,000, what is your average monthly gross production?
$50,000
Which of the following is the best gross collection ratio?
1.0
A bank statement obtained through an ATM usually contains the last _____ transactions made on an account.
10
The A/R ratio has a goal of:
2 months or less
secure document check face
A face that makes replication difficult.
foil hologram
A three-dimensional graphic foil embedded in the check to provide additional protection against duplication.
chemical reactive paper
A uniquely treated paper that will show visible signs of chemical tampering.
checking account
Bank account into which money may be deposited and checks may be written against.
ATM
Banking machine operated by inserting a debit, credit, or bank card and entering personal identification number code
third-party check
Check made out to the patient by someone unknown to you.
limited check
Check that will be marked void if written over a certain amount.
ABA number
Code number found in the upper-right hand corner of a printed check
toner adhesion
Endures that toner from your printer cannot be removed from the paper without damage.
What is the correct way to write the numerical amount $5.62 as a written amount?
Five and 62/100
certified check
Guaranteed check that is always acceptable when a personal check is not.
colored pantograph
If the unique colored background is not present, the check is not authentic.
warning band
In the border of the check indicating the document contains security features.
MP logo
In the signature line of laser checks and in the border on manual checks repeats the words "original document".
prismatic multicolored background
Includes subtle gradations that make copying and reproduction difficult.
padlock icon
Inside the border that indicates at least two security features are included on the check.
deposit slip
Itemized list of cash and checks deposited in a checking account.
electronic funds transfer system
Method of crediting and debiting accounts by computer without checks or deposit slips.
currency
Money produced by the Federal Reserve in the form of paper bills and coins
deposit
Money put into a bank account, increasing the balance
money order
Negotiable instrument often used by individuals who do not have checking accounts or to meet the requirement for purchasing an item or service.
MICR Numbers
Numbers printed on the check in magnetic ink that contain the routing (ABA) number.
endorser
Payee on a check.
endorsement
Payee's signature on the back of a check.
maker
Payer of the check.
agent
Person authorized to act for another person
security screen
Printed on the back of each check that reads "original document" with a list of the security features and will not photocopy clearly.
deposit record
Record of a deposit given to a customer at the time of the deposit.
bank statement
Record of checking account activity sent to a customer, usually on a monthly basis.
check register
Record showing the check number, person to whom check is paid, amount of check, date, and balance.
thermochromic-heat sensitive icon
The ink cannot be applied by conventional photocopiers, ensuring authenticity of the document.
accounts payable
Total amounts owed by a practice to suppliers and other service providers for regular business operating expenses.
cashier's check
Type of check in which the purchaser pays the bank the full amount of the check.
If a mistake is made in writing a check, it is necessary to write "_____" across the check and stub and write a new one.
VOID
visible or invisible fibers
Visible fibers of various lengths and color complicate copying, and invisible fibers can be viewed from either side of the paper using black (UV) light.
an overdraft is when:
a check is more than the amount in the bank account
It is typically the responsibility of the _____ to produce the values used in cost-benefits analysis.
accountant
The use of checks became common:
after World War II (WWII)
When invoices are held for payment, they are typically filed:
alphabetically by the supplier's name
Cost-benefit analysis is not:
an advanced, complex type of cost analysis
Deposits should be always be delivered to the bank:
at different times and days of the week
A(n) _____ is also known as a statement of financial position.
balance sheet
Accept a postal money order with more than one endorsement
be highly organized
Accept a check marked "paid in full" unless it does pay the full balance
best practice (good policy)
Accept a postal money order with only one endorsement
best practice (good policy)
Stamp it with the deposit endorsement
best practice (good policy)
When completing a stub or register, you should:
bring forward the balance from the previous stub or entry
When writing a check, the date:
can be written or numerical
Traveler's checks are listed as ______ on a deposit slip.
checks
When your medical office receives an invoice from a supplier, in which section does the name of the medical practice appear?
client details
Adds another layer of detail to your business's bookkeeping practices.
con
Business see small processing fees for each credit card transaction.
con
Requires the minor, but additional, step of adding a pin pad to a credit card terminal.
con
The _____ formula demonstrates a cost of a specific procedure or service.
cost ratio
_____ is a digital or virtual currency that uses cryptography for security, making it difficult to counterfeit.
cryptocurrency
The date bu which payment should be made is called the:
due date
A(n) _____ check is paid directly from a checking account via the Internet.
electronic
_____ is a digital or virtual currency that uses cryptography for security, making it difficult to counterfeit.
electronic check
The check routing symbol is commonly _____ on a personal check.
hyphenated
All checks received in the office, whether in person or through the mail, should be protected by endorsement:
immediately at the time received
Which of the following is not included in the company details on an invoice?
invoice number
The study and analysis of financial data as it applies to operational issues within a company is called _____ accounting.
managerial
The process of performing banking transactions with a smart phone or personal digital assistant (PDA) is known as _____ banking.
mobile
To convert the gross collection ratio to a percentage, you:
multiply it by 100
The _____ ratio is also known as the adjustment collection ratio.
net collection
The ______ demonstrates the value of a business.
net worth
Accept a check that has not corrections made
not a best practice (not a good policy)
Accept a check that has seven components that make it valid
not a best practice (not a good policy)
Accept a check written for more than the amount due so patient can receive cash back
not a best practice (not a good policy)
Accept a third-party check
not a best practice (not a good policy)
The _____ is the amount in numbers that the check is written for.
numeric amount
A check must include some form of which phrase to be negotiable?
pay to the order of
Which of the following is not commonly considered an overhead expense?
payroll
A check paid directly from a checking account through the Internet is known as a(n):
personal checking
As soon as cash money is received in the office, it should be:
placed out of sight in a secure location
When sorting currency, bill should be stacked:
portrait side up, in order from highest to lowest denomination
Which of the following is not a type of savings account?
possible loss of funds, identity of patients, potential HIPAA violations
A business that accepts credit cards gives customers another payment option.
pro
Because the debit process is similar to a cash transaction, the fees that a business pays on debit transaction are smaller than credit card or check fees.
pro
Easy to use and makes paying bills or making store purchases hassle free for customers.
pro
Payments generally have a faster approval time, which means faster access to revenue.
pro
Precautions must be taken when determining the banking procedures within a practice. Which of the following is an example of banking concerns?
pro
the process of verifying that the amounts on the bank statement are consistent with the amounts in the check register is known as:
reconciling
If a stop payment is placed on a check, the bank will:
refuse to honor the check
A _____ endorsement states, "PAY TO THE ORDER OF (name of bank where the check is to be deposited)."
restrictive
When depositing checks by mails, they should be endorsed by _____ endorsement only.
restrictive
The MICR numbers are numbers and symbols and contain the nine-digit _____ number.
routing
A _____ check is a check presented too long after it was written to be honored by the bank.
stale
A check will be instantly returned by the bank if:
the signature is missing
When preparing a deposit slip, if there are more checks than can be listed in the front of the slip, you should:
use the back, total the amount, and bring it forward to the correct line
A medical assistant working in accounts payable should:
verify that everything on the invoice was received before making payment
When a statement is received from a supplier, you should:
verify that everything on the invoice was received before making payment
This kind of check is often used by insurance companies:
voucher
You should not accept a check that is:
written for more than the amount due so the patient can have some cash in hand
