Deck 20: Accounting Practices

Question 1

In medical practices, embezzlement can be decreased by doing all of the following EXCEPT?

A)Conduct regular and irregular audits. 
B)Allow employees to use a signature stamp. 
C)Seek honest personnel. 
D)Separate duties among several employees.

Answer 1

Allow employees to use a signature stamp. 

Question 2

Total monthly receipts are $50,000 and total monthly charges are $60,000 for the same month.Which of the following percents is the collection ratio?

A)95%
B)87%  
C)83%
D)120%

Answer 2

83%

Question 3

If your facility chooses not to purchase accounting software or to use computers, an alternative would be to use what?

A)Managed care
B)Service bureau  
C)Personal accountant
D)Financial consultant

Answer 3

Service bureau  

Question 4

Which of the following best describes a primary need of medical facilities to monitor more information?

A)Increased staff
B)Decreased staff  
C)Longer hours
D)Computerization

Question 5

Which of the following is NOT a true statement about a computerized accounting system?

A)Can be customized to the individual care setting  
B)Replaces all other systems immediately  
C)Can include the most common procedure and diagnostic codes  
D)Automatically creates day-end summaries

Question 6

Which of the following accounting systems utilizes "no carbon required" forms that are layered?

A)Single entry
B)Double entry  
C)Pegboard
D)Computerized

Question 7

Which of the following accounting systems includes a daily journal or log, patients' statements, ledgers, checks, and disbursement records?

A)Single entry
B)Double entry  
C)Pegboard
D)Computerized

Question 8

Which of the following bookkeeping and accounting systems includes charge slips or encounter forms?

A)Triple-entry system
B)Double-entry system  
C)Single-entry system
D)Pegboard system

Question 9

Which of the following is NOT considered a bond to help protect practices from embezzlement?

A)Position-scheduled bond
B)Blanket-position bond  
C)Family-practice bond
D)Personal bond

Question 10

What is NOT considered part of the itemized balance sheet?

A)Liabilities
B)Assets  
C)Cost ratio
D)Owner's equity

Question 11

Which of the following best describes the accounting system that provides information primarily for entities external to the organization?

A)Cost
B)Financial  
C)Managerial
D)Disbursement

Question 12

Which of the following accounting systems is based on the principle that assets equal liabilities plus owner's equity.This system requires time and skill and provides a comprehensive financial picture with built-in accuracy controls?

A)Single entry
B)Double entry  
C)Pegboard
D)Computerized

Question 13

Which bond covers all employees and is most beneficial?

A)Position-scheduled bond
B)Blanket-position bond  
C)Family-practice bond
D)Personal bond

Question 14

Which of the following best describes a type of accounting that helps to determine the finances necessary for the ambulatory care setting?

A)Cost
B)Financial  
C)Managerial
D)Disbursement

Question 15

Which of the following applies to the financial report that shows cumulative monthly profit and loss?

A)Aging analysis
B)Balance sheet  
C)Cost ratio
D)Income statement

Question 16

What is the common name for an employee withholding allowance certificate?

A)W-2
B)W-4  
C)Pay stub
D)W-A

Question 17

Which of the following terms applies to the accounting system in which outstanding accounts such as office expenses and services are paid for?

A)Collections
B)Cost  
C)Accounts receivable
D)Accounts payable

Question 18

Which of the following is the recommended turnaround time of an efficient billing and collections policy?

A)1 month or less
B)2 months or less  
C)1 week
D)6 months

Question 19

Which of the following ratios is calculated by dividing total expenses by the total number of procedures for 1 month?

A)Collection
B)Cost  
C)Accounts receivable
D)Accounts payable

Question 20

Which of the following is an unwritten promise to pay for credit purchases or services?

A)Debt collection
B)Cost ratio  
C)Accounts payable
D)Cost accounting

Question 21

What is created by totaling debit balances and credit balances to confirm that total debits equal total credits?

A)Trial balance
B)Balance sheet  
C)Accounts payable
D)Ledger statement

Question 22

Indicate whether the item applies to fixed costs or variable costs.

depreciation

A) fixed costs
B) variable costs

Question 23

Which would NOT be considered part of the ledger or journal entry?

A)Date of transaction
B)Account names involved  
C)Dollar amount of charges
D)Total receipts

Question 24

Indicate whether the item applies to fixed costs or variable costs.

insurance

A) fixed costs
B) variable costs

Question 25

Indicate whether the item applies to fixed costs or variable costs.

employees' salaries

A) fixed costs
B) variable costs

Question 26

Indicate whether the item applies to fixed costs or variable costs.

rent

A) fixed costs
B) variable costs

Question 27

Indicate whether the item applies to fixed costs or variable costs.

physicians' salaries

A) fixed costs
B) variable costs

Question 28

Indicate whether the item applies to fixed costs or variable costs.

clinical supplies

A) fixed costs
B) variable costs

Question 29

Indicate whether the item applies to fixed costs or variable costs.

loan payment

A) fixed costs
B) variable costs

Question 30

Indicate whether the item applies to fixed costs or variable costs.

property taxes

A) fixed costs
B) variable costs

Question 31

Indicate whether the item applies to fixed costs or variable costs.

laboratory procedures

A) fixed costs
B) variable costs

Question 32

Indicate whether the item applies to fixed costs or variable costs.

collection costs

A) fixed costs
B) variable costs