Deck 27: Accounts, Collections, and Banking

Question 1

A check drawn on the bank's own account and signed by an authorized bank official is called a

A) bank draft.
B) voucher check.
C) cashier's check.
D) certified check.

Answer 1

cashier's check.

Question 2

Accounts receivable are moneys that are expected but not yet received. All invoices, statements, and operational expenses are included in accounts receivable.

A) Both statements are true.
B) Both statements are false.
C) The first statement is true; the second is false.
D) The first statement is false; the second is true.

Answer 2

The first statement is true; the second is false.

Question 3

Which of the following agreements for payment plans is not subject to TILA and does not require a signed Truth in Lending Statement?

A) Specific agreement for less than four installments and finance charge
B) Specific agreement with more than four installments and finance charge
C) No specific agreement with more than four installments and no finance charge
D) Credit card or loan specifically for healthcare treatment
E) All of the above

Answer 3

No specific agreement with more than four installments and no finance charge

Question 4

A plan in which payments are transferred, usually electronically, by a paying agency directly to the account of a recipient is called

A) disbursement.
B) direct deposit.
C) customer-oriented banking.
D) endorsement banking.

Question 5

If the medical assistant is allowed to sign checks on the physician's business account, he or she must sign a document at the bank called a

A) confidentiality statement.
B) bond.
C) signature card.
D) noncompete statement.

Question 6

Which of the following is not one of the four types of endorsements?

A) Blank
B) Quality
C) Restrictive
D) Special

Question 7

What is the first thing the medical assistant should do when a check is returned unpaid by the bank?

A) Contact the person who wrote the check.
B) File it with the district attorney's office.
C) Send a letter refusing to see the person as a patient until the matter is resolved.
D) Write off the account.

Question 8

Which of the following types of accounts requires a minimum balance and draws interest at the highest rates?

A) Checking account
B) Savings account
C) Money market savings account
D) All of the above

Question 9

A document guaranteeing payment of a specific amount of money to the payer named on the document is

A) principal.
B) negotiable.
C) convenient.
D) legally binding.

Question 10

Who is financially responsible for a minor seeking treatment for STD without parental consent?

A) The parent who brings the child in for treatment
B) The legally emancipated minor
C) It depends; the medical assistant must determine where the statement should be sent
D) The minor
E) The legal guardian

Question 11

Which of the following is the most successful collection strategy?

A) Notes
B) Patient account statement
C) Collection letter
D) Telephone call

Question 12

Many healthcare facilities find small claims court a satisfactory, inexpensive means of collecting delinquent accounts. Parties to small claims actions are represented by an attorney at the hearing but may also send another person to court on their behalf to produce records supporting the claim.

A) Both statements are true.
B) Both statements are false.
C) The first statement is true; the second is false.
D) The first statement is false; the second is true.

Question 13

Payments to the healthcare facility come as reimbursement from the insurance company only. Adjustments are made to a patient's account when it is necessary to add or subtract a patient payment from the balance.

A) Both statements are true.
B) Both statements are false.
C) The first statement is true; the second is false.
D) The first statement is false; the second is true.

Question 14

Which of the following needs to occur when a check is returned from the bank for NSF?

A) The payment posted to the patient account must be reversed.
B) A charge line item must be added with the amount of the NSF check.
C) The original payment must be deleted.
D) Both A and B
E) All of the above

Question 15

The country is divided into how many Federal Reserve districts?

A) 8
B) 10
C) 12
D) 14

Question 16

Which of the following should be considered when using a collection agency?

A) Net back
B) Fee percentage
C) Fee charged by the collection agency
D) Both A and B
E) All of the above

Question 17

When should checks from patients and other sources be deposited?

A) At the same time bills are paid
B) On a daily basis
C) When the bank statement is reconciled each month
D) At the end of every week

Question 18

An insured account requiring a minimum balance that draws interest at a higher percentage than a regular savings account is called a __________ account.

A) money market savings
B) individual retirement
C) checking
D) business savings

Question 19

Which of the following account aging categories requires a final demand letter before the account is turned over to a collection agency?

A) 30 to 60 days
B) 60 to 90 days
C) 90 to 120 days
D) None of the above

Question 20

The first thing that should be done when an NSF check is received at the physician's office is to

A) add the check back to the patient's statement balance.
B) call the patient to let the person know that the check was returned.
C) send a certified letter to the patient to demand payment for the check.
D) add the NSF fee to the patient's statement balance.

Question 21

Which of the following best describes an ACH transfer of funds between two separate banking institutions?

A) Both accounts are verified and funds are quickly available.
B) Both accounts are not verified and funds are quickly available.
C) Both accounts are verified but funds may take several days to be available.
D) Both accounts are not verified and funds may take several days to be available.

Question 22

All property available for the payment of debts said to be his or her __________.

A) credits
B) debits
C) assets
D) liabilities

Question 23

The __________ uncovers any errors that may exist in the checkbook or, on rare occasions, the bank statement.

A) reconciliation
B) disbursement
C) explanation of benefits
D) bookkeeping

Question 24

Many direct deposits are processed through which of the following?

A) ACH
B) NACHA
C) EPN
D) EFT

Question 25

An instrument that is legally transferable to another party is said to be __________.

A) unsecured
B) negotiable
C) intangible
D) discretionary

Question 26

The bank statement reconciliation is used as an audit, or to ensure that the bank is managing the funds in the account accurately. Any errors on the bank statement should be reported to the bank immediately.

A) Both statements are true.
B) Both statements are false.
C) The first statement is true; the second is false.
D) The first statement is false; the second is true.

Question 27

When an account is opened at a bank, the depositor will be required to complete a(n) __________ card.

A) debit
B) endorsement
C) signature
D) None of the above

Question 28

Amounts owed to the physician are accounts _____________.

A) payable
B) receivable
C) debit
D) credit

Question 29

Accounts __________ are debts incurred but not yet paid.

A) payable
B) receivable
C) debit
D) credit

Question 30

A(n) __________ endorsement is used in preparing checks for deposit to the physician's checking account.

A) blank
B) restrictive
C) special
D) qualified

Question 31

Which of the following digits in an RTN represent the individual bank identification number?

A) First two digits
B) Third digit
C) Last six digits
D) All nine digits

Question 32

Which of the following endorsements includes words specifying the person to whom the endorser makes the check payable?

A) Blank endorsement
B) Restrictive endorsement
C) Special endorsement
D) Qualified endorsement

Question 33

Who in the office is authorized to sign checks?

A) The doctor
B) Any trusted staff member
C) Only those whose names appear on the signature card
D) A responsible medical assistant

Question 34

Which of the following is required for a check endorsement?

A) Ink pen or rubber stamp
B) On the back of the check
C) Across the left or perforated end
D) Both A and B
E) All of the above

Question 35

What is required for a check to be negotiable?

A) Be written and signed by the drawer
B) Contain a promise or order to pay a sum of money
C) Be payable on demand
D) Both A and B
E) All of the above

Question 36

Which of the following is not an acceptable reason for stop-payment on a check?

A) Loss of check
B) Disagreement about a purchase
C) Insufficient funds
D) Disagreement about a payment

Question 37

Which of the following does not conform to the general rules for telephone collections?

A) Call only between 8 am and 9 pm
B) Make repeated telephone calls on the same day
C) Assume a positive attitude
D) Keep the conversation brief and to the point

Question 38

A signature on the back of a check whereby the rights of the check are transferred to another party is called a(n) __________.

A) plaintiff
B) trustee
C) claim
D) endorsement

Question 39

A(n) __________ check has a detachable form that is used to itemize or specify the purpose for which the check is drawn.

A) cashier's
B) personal
C) business
D) voucher

Question 40

For offices with a no cash policy, which type of payment is typically recommended for patients without a bank account?

A) Cashier's check
B) Money order
C) Voucher check
D) Either A or B
E) All of the above

Question 41

The three most common types of bank accounts are checking accounts, savings accounts, and money market savings accounts.

Question 42

Blank endorsements make checks payable to the bearer.

Question 43

ACH payments can be made using the routing and account number and are processed at banks like regular checks.

Question 44

The stamp "For deposit only" is a restrictive endorsement.

Question 45

Most patients who write checks to pay their account with their physician have no intention of fraud.

Question 46

Banking by mail is never done now that the use of the internet is so prevalent.

Question 47

A person who writes a check is sometimes called the __________.

A) signer
B) indigent
C) drawer
D) All of the above

Question 48

The person who writes the check is called the drawee.

Question 49

Bank statements should be checked immediately upon receipt and scanned carefully for errors.

Question 50

In the physician's office, the accounts payable is the amount of money that all patients owe the physician.