Deck 17: Banking Services and Procedures

Question 1

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.

Answer 1

Contact the person who wrote the check.

Question 2

Which type of bank account would be best for maintaining funds that are used for paying seasonal expenses, such as insurance premiums?

A) Regular savings account
B) Money market savings account
C) Interest-bearing checking account that requires a high minimum balance
D) Regular checking account

Answer 2

Interest-bearing checking account that requires a high minimum balance

Question 3

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

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

Answer 3

Quality

Question 4

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 5

A check made payable to "Cash" is most commonly used in the physician's office to

A) pay employees.
B) provide the physician with funds for travel expenses.
C) pay for medical supplies.
D) replenish petty cash.

Question 6

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 7

Any individual, corporation, or legal party who signs a check or any type of negotiable instrument is considered the

A) maker.
B) payer.
C) drawer.
D) payee.

Question 8

When should checks from patients and other sources be deposited?

A) At the same time bills are paid
B) As soon as possible after they are received
C) When the bank statement is reconciled each month
D) At the end of every week

Question 9

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 10

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 11

If a bank cashes a check that is later returned for insufficient funds, whom does it charge to recover the amount lost?

A) The check's maker
B) The person who received the money
C) The person to whom the check was written
D) The person who last endorsed the check

Question 12

Something legally transferable to another party is considered

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

Question 13

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 14

The country is divided into how many Federal Reserve districts?

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

Question 15

A capital sum of money due as a debt or used as a fund for which interest is either charged or paid is called

A) disbursement.
B) reconciliation.
C) principal.
D) holder.

Question 16

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 17

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 18

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 19

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.

Question 20

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 21

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

Question 22

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 23

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 24

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 25

__________ bonding covers specific individuals.

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

For individuals to be __________, a personal background investigation normally is necessary.

Question 28

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 29

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

Question 30

Banks ask to be notified within a reasonable time if the customer finds a(n) __________ on his or her bank statement.

Question 31

Many direct deposits are processed through which of the following?

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

Question 32

A person presenting a check for payment might be called the __________.

Question 33

__________ bonds reimburse the physician for any monetary loss caused by employees.

Question 34

A capital sum of money due as a debt or used as a fund for which interest is either charged or paid is called the __________.

Question 35

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

Question 36

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

Question 37

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

Question 38

The name of the last endorser of the check shows who last __________ the money.

Question 39

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

Question 40

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

Question 41

The deposit is $3,290. The checkbook balance is $16,561, but the mortgage payment on the physician's building is paid the same day, which is $3,500. What is the checkbook balance?

Question 42

Checks received in the mail today include those for $87, $45, $88, and $100. What is the total check deposit for the day?

Question 43

Checks received in the mail today include those for $23.03, $87, and $830. Checks taken in the office from patients include those for $25, $55, $30, and $255. What is the total in checks that will be included in the day's deposit?

Question 44

The physician uses the debit card for $782.19 to pay for medical supplies, $56 for office supplies, and $76 to stock the employee break room refrigerator. If the balance in the checkbook is $32,830.43, what is the balance after the debit card activity?

Question 45

The bank charges a fee of $25 for each of six NSF checks that were returned during the month. If the bank statement balance after outstanding checks are deducted is $12,543.24, what will the balance be after the fees are deducted?

Question 46

A patient writes a check for $560 that is returned by the bank. The physician redeposits the check, which clears, and the physician does not want to charge this patient an NSF fee. How much should be added to the patient's account in this transaction?

Question 47

Today's checks include $56, $73, $89, $23, $20, and $82. What is the total in checks for the daily deposit?

Question 48

The deposits in cash today are $657 and the checks total $8,343. What is the total deposit?

Question 49

A patient writes a check in the amount of $56 toward her account of $569. What is her balance after the payment?

Question 50

During the monthly reconciliation of the checkbook, the bank statement balance is $16,589.24. The checkbook balance is $16,569.24. The medical assistant should look for an error in what amount?

Question 51

Debit card transactions to be added to the deposit include those for $45, $561, and $887. What is the total of these debits?

Question 52

The petty cash till has 52 quarters, 43 dimes, 19 nickels, and 24 pennies. What is the total amount of change in the till?

Question 53

If the bank charges a fee of $12 each time the average balance drops below $5,000, and this has happened seven times during the year, what is the total in these fees that the physician will pay?

Question 54

The physician uses a debit card to pay for purchases totaling $46, $50.02, $802.98, and $73. What is the checkbook balance after the debit card purchases if the account balance is $17,394.83 before the transactions?

Question 55

The checks received today include $56, $78, $57, $43, and $5,633.12. What is the total amount in checks that will be added to the deposit?

Question 56

The currency taken in during the day includes 9 $20s, 2 $50s, 4 $100s, 6 $10s, and 17 $5s. What is the total currency?

Question 57

The deposit is $450. The checkbook balance is $9,872.54. If one debit card transaction is completed on the account for $251.55, what is the balance in the account?

Question 58

The deposit is $5,192. The checkbook balance is $10,432. What is the balance after the deposit is made?

Question 59

The physician charges $450 for a procedure, and the patient pays one third of the total by check. For what amount is the check written?

Question 60

The physician charges $2,400 for a surgical procedure. The patient pays half of the total amount as a deposit and agrees to make payments of $200 each month until the balance is clear. After three payments, what is the patient's balance?

Question 61

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

Question 62

A patient writes a check for $44 that is returned from the bank. The physician charges a fee of $30 for NSF checks. How much should be added back to the patient's account?

Question 63

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

Question 64

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

Question 65

Many banks offer applications that can be downloaded for free on smart phones and computers that will let the user deposit checks from any location.

Question 66

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

Question 67

Checks received in the mail today include those for $90 and $436. If $568 in cash is deposited with the checks, how much is the total deposit?

Question 68

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

Question 69

The name of the first endorser of the check indicates the last person who received the money.

Question 70

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

Question 71

A patient writes a check for $78 on an account with a balance of $285. What is the total due after the check is posted?

Question 72

The person who writes the check is called the drawee.

Question 73

Blank endorsements make checks payable to the bearer.

Question 74

The maker of the check is the person to whom it is written.