🌟Administrative Practice Management- CH 19

What is the term for subtracting checks and withdrawals from the bank balance?

Debited

Where should money for minor office expenses be accessed?

Petty cash fund

What is the term for a regular withdrawal of funds from one account and transferring them to another account, in specific amounts, at specified times?

Automatic transfer of funds

Which statement is true regarding accounts receivable control?

Summary of money owed to the practice

Which statement is true regarding bookkeeping?

It is the recording of all transactions in the accounting system

What is the first thing that should be done if a bank statement balance and the checkbook balance do not agree?

Recheck all details to find the error

What is the process of the payee writing their name on the back of the check or money order as it appears on the front?

Endorsement

What is the term used to describe the process of ensuring the accuracy of the bank balance on a monthly basis?

Reconciled

The medical assistant has prepared a check to send to the electric company. The check has the business name and address preprinted, and Marcus Welby, MD has signed the check. In this case, who is the payee?

The electric company

Which type of check is so old when presented for payment that it is no longer valid?

Stale check

Exists when an account is overpaid, and a refund must be made back to the patient or a health insurance company by the medical facility

Credit balance

Most offices avoid this if at all possible because they are a costly service to the provider or medical facility

Collection Agency

Meaning the patient does not have enough money in the bank account to cover the amount of the check

Nonsufficient funds check

A check made out to the patient by an unknown party

Third party payment

When using a pegboard accounting system, where are payments and adjustments simultaneously recorded?

Ledger and daysheet

The End of Day reconciliation should be ran daily to start the next day without errors. T/F

True

Which part of a patient account contains a chronological history of all financial transactions for a patient?

Ledger card

When preparing a bank deposit, how are the checks listed on the deposit slip?

Separately

What is the tern for an unlawful practice of writing a check with the knowledge that there are not sufficient funds in the account?

Intent to defraud

Which type of check is not considered negotiable but can be converted into a negotiable instrument or cash?

Warrant

It is best practice (good policy) to accept a third party check T/F

False

What is the most common way of check endorsement?

Blank endorsement

In accounting which reports is a daily summary of the amount that is owed to the practice but has not been collected?

Accounts receivable control

Which type of accounting method is self-balancing?

Double-entry accounting

Where is change obtained for a patient who pays with cash?

Change drawer

A check made out to a patient by another unknown party, is called a third party check T/F

True

What must be done to balance a patient account if an insurance company disallows a fee?

Credit adjustment

When reconciling a bank statement and the statement balance and checkbook balance do not agree, what number should the difference by divided by to find a transposition error?

9

Which statement describes computerized accounting?

Allows simultaneous posting through the computer database

What can be found on an individual patient ledger?

History of all financial transactions

When processing a credit balance, if a refund is due to a patient, you must

Verify the patients current address to mail them the refund check

What is the name for a check that has been created from a digital image of the original?

Electronic check

Which type of machine imprints figures on a check so that they cannot be changed

Check writer machine

When is the deposit processed by the bank when using an after-hours deposit service?

The following morning

When a check is written, what is the name of the person who signs the check?

Drawer

When a check is written, what is the name given to the person who will receive the money?

Payee

A collection agency is usually comes into play with a bill is delinquent for more than six months T/F

True

In an EHR, which screen acts as a patient ledger

Account screen

What is the bookkeeping abbreviation for coinsurance?

COINS

What is the term for recording a transaction on a daily ledger?

Posting

What is the abbreviation for a check that does not have enough money in the account to cover it?

NSF

How much cash is typically in a charge drawer, depending on the size of the practice?

$50 to $200

What is the term for adding a deposit to the balance of a bank account?

Credit

How often are statements sent patients who have an outstanding balance?

Every month

It is a best practice (good policy) to only accept a check marked “ paid in full” if the balance is indeed paid in full. T/F

True

Which form of payment can be purchased for face value plus a fee from a bank, convenience store, or other retail location and must be signed by the purchaser

Money order

Which type of accounting expedites posting, reduces the use of paper, increases accuracy, and incorporates electronic billing?

Computerized accounting

What is the name of a computerized system that enables funds to be debited, credited, or transferred?

Electronic funds transfer system

Which type of endorsement is used on a check that is to be transferred to another person or business?

Full endorsement

Which type of endorsement contains the phrase “for deposit only” to prevent forgery?

Restrictive endorsement