Question 1

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

Accepted Answer

ACH transfers involve two different banking institutions, but since both accounts are not verified, a few extra days are needed for funds to be available. Wire transfers occur between two separate banking institutions in which both accounts are verified, so funds are available quickly.

Question 2

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

Accepted Answer

Assets are the entire property of a person, association, corporation, or estate applicable or subject to the payment of debts.

Question 3

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

Accepted Answer

Reconciliation of the bank statement usually discloses errors involving the bank account and the transactions that affect it.

Question 4

Many direct deposits are processed through which of the following?

Accepted Answer

Many direct deposits are processed through an automated clearinghouse (ACH), which is an electronic network for financial transactions in the United States. An ACH processes large volumes of debit and credit transactions in batches. Rules and regulations that govern the ACH network have been established by the National Automated Clearing House Association (NACHA) and the Federal Reserve. The Federal Reserve banks, as a group, are the nation's largest clearinghouse operator. The Electronic Payments Network (EPN) is the only private-sector ACH in the country. Direct deposit, also known as electronic fund transfers (EFT), is electronic payments of payroll, money owed to vendors or business establishments, and payments from government agencies.

Question 5

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

Accepted Answer

A negotiable instrument is transferable to another party.

Question 6

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.

Accepted Answer

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.

Question 7

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

Accepted Answer

Signature cards allow the bank to compare signatures when negotiable instruments arrive at the bank for processing.

Question 8

Amounts owed to the physician are accounts _____________.

Accepted Answer

Amounts owed to the physician are called the accounts receivable.

Question 9

Accounts __________ are debts incurred but not yet paid.

Accepted Answer

Accounts payable are debts incurred but not yet paid.

Question 10

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

Accepted Answer

Restrictive endorsements are used for preparing checks for deposits.

Question 11

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

Accepted Answer

The first two digits indicate the Federal Reserve district where the bank is located. The third digit indicates the particular district office, and the rest of the digits represent the individual bank identification number.

Question 12

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

Accepted Answer

A special endorsement includes words specifying the person to whom the endorser makes the check payable. In a blank endorsement, the payee signs only his or her name. This makes the check payable to the bearer. It is the simplest and most common type of endorsement on personal checks but should be used only when the check is to be cashed or deposited immediately. A restrictive endorsement specifies the purpose of the endorsement. It is used in preparing checks for deposit to the provider's checking account. With a qualified endorsement, the effect of the endorsement is qualified by disclaiming or destroying any future liability of the endorser.

Question 13

Who in the office is authorized to sign checks?

Accepted Answer

Only those whose names appear on the signature card are authorized to sign checks, and the bank is responsible for verifying any questionable signatures. The provider often delegates the responsibility of paying bills to a responsible medical assistant. In this case, any staff member who has been authorized to sign the medical facility's checks must go to the bank and add his or her handwritten signature to the signature card.

Question 14

Which of the following is required for a check endorsement?

Accepted Answer

Endorsements are made in ink, with either pen or rubber stamp, on the back of the check across the left (or perforated) end.

Question 15

What is required for a check to be negotiable?

Accepted Answer

In order for a check to be negotiable, the check must be written and signed by the drawer, contain a promise or order to pay a sum of money, and be payable on demand.

Question 16

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

Accepted Answer

Reasons for stop-payment requests include loss of a check, disagreement about a purchase, and disagreement about a payment.

Question 17

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

Accepted Answer

General Rules for Telephone Collections: Do not make repeated telephone calls on the same day. Do not call the debtor's place of work if the employer prohibits personal calls. What to Do: Call the patient when it can be done privately; only call between 8 am and 9 pm. Be dignified and respectful. One can be friendly and professional at the same time. Ask the patient whether it is a convenient time to talk. Assume a positive attitude. Keep the conversation brief and to the point; do not make threats of any kind.

Question 18

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

Accepted Answer

The endorsement is the signature on the back of the check that transfers rights to the money to another party.

Question 19

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

Accepted Answer

Voucher checks have detachable forms that are used to itemize or specify the purpose for which they are drawn.

Question 20

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

Accepted Answer

If a patient does not have a bank account, the medical staff can kindly refer the patient to a local money order dealer. While this can be inconvenient to the patient, explain the healthcare facility policy on accepting cash payments and that the policy is intended to protect the patient. A voucher check has a detachable voucher form or could be attached to an explanation of benefits (EOB). Cashier's checks often are issued to accommodate a savings account customer who does not keep a checking account.

Quiz 27: Accounts, Collections, and Banking

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

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

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

Many direct deposits are processed through which of the following?

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

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.

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

Amounts owed to the physician are accounts _____________.

Accounts __________ are debts incurred but not yet paid.

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

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

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

Who in the office is authorized to sign checks?

Which of the following is required for a check endorsement?

What is required for a check to be negotiable?

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

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

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

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

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