Deck 44: Managing Practice Finances

Question 1

Describe banking procedures

Answer 1

not answered

Question 2

In bookkeeping, what is an example of a credit?

A) A patient is charged for an office visit.
B) A patient's bill is sent to the insurance company.
C) A patient is given a discount for paying in full at the time of the visit.
D) The amount of a check is returned by the bank due to insufficient funds and is added to a patient's account.

Answer 2

A patient is given a discount for paying in full at the time of the visit.

Question 3

Discuss types of adjustments that may be made to a patient's account

Answer 3

not answered

Question 4

Medical Office Business Procedures/Management

Question 5

What is the term used to describe money that is owed to the medical office?

A) Accounts payable
B) Revenue accounts
C) Cash due accounts
D) Accounts receivable

Question 6

Identify procedures for preparing patient accounts

Question 7

Which equation is the correct accounting principle?

A) Owner's equity = assets + liabilities
B) Assets = liabilities + owner's equity
C) Liabilities = owner's equity + assets
D) None of the above

Question 8

Compare manual and computerized bookkeeping systems used in ambulatory healthcare

Question 9

At what interval are charges and payments usually posted to patient accounts?

A) Daily
B) Hourly
C) Weekly
D) Monthly

Question 10

Discuss precautions for accepting checks

Question 11

When is income calculated in the cash basis of accounting?

A) When a bill is sent to the patient
B) When a patient's bill has been paid
C) When a charge is posted to a patient account
D) At the end of the month in which service occurred

Question 12

What type of record is used to keep track of all the charges and payments for each individual patient?

A) Patient ledger
B) Daily journal
C) Patient statement
D) Transaction entry record

Question 13

Differentiate between accounts payable and accounts receivable

Question 14

What is the major disadvantage of the single entry bookkeeping system?

A) It requires extensive training to perform correctly.
B) It is not commonly used, so it is unfamiliar to most people.
C) It requires more record keeping than other bookkeeping systems.
D) There is no method to crosscheck for accuracy of recording and calculations.

Question 15

What term is used to describe the bills that the practice has for office rent, equipment rental, and salaries?

A) Outgo accounts
B) Accrual accounts
C) Accounts payable
D) Accounts receivable

Question 16

Compare types of endorsements

Question 17

Differentiate between bookkeeping and accounting

Question 18

Explain basic bookkeeping computations

Question 19

In which type of bookkeeping system is every transaction posted into two different records, once as a credit and one as a debit?

A) Pegboard bookkeeping system
B) Single-entry bookkeeping system
C) Double-entry bookkeeping system
D) Medical office computer billing bookkeeping system

Question 20

What is the function of a daily journal (day sheet) in a bookkeeping system?

A) To record financial activity for the month
B) To keep a chronological record of transactions
C) To keep a record of cumulative financial activity
D) To keep a record of transactions related to a single patient

Question 21

What information is not contained on the MICR line?

A) The check number
B) The bank ABA number
C) The bank routing number
D) The name of the account holder

Question 22

Who is responsible for checking the boxes on the charge slip for services provided to the patient?

A) Physician
B) Office manager
C) Medical assistant
D) Whichever staff member is at the desk when the patient is ready to leave

Question 23

Which practice should the medical office avoid when accepting checks from patients?

A) Comparing the signature on a check to the signature on a valid ID
B) Asking for identification from patients who are not known to the office
C) Accepting the patient's paycheck after the patient has endorsed it to the office
D) Making sure that the date on the check corresponds to the date of the visit

Question 24

What is another name for the itemized charge slip commonly used in the medical office?

A) Receipt
B) Superbill
C) Register slip
D) CMS-1500 form

Question 25

If a manual day sheet is kept, what is the function of the proof of posting area?

A) To verify the totals from the previous day
B) To verify that all columns were added correctly
C) To keep a record of month to date and year to date totals
D) To verify that all charges and payments for the day were entered

Question 26

If a manual day sheet is used, which of the following is often created at the same time?

A) Revised fee schedule
B) Patient billing statement
C) Record of all adjustments
D) Itemization slip for the bank deposit

Question 27

How will the medical office usually utilize a savings account?

A) To hold fund so that checks can be written for ordinary expenses
B) To pay the salaries for nurses and physicians who work for the medical practice
C) To keep a reserve fund of money that will not be needed for anticipated expenses
D) To hold funds so that checks can be written for equipment or other infrequent expenses

Question 28

How does the medical assistant know what the usual charge is for a procedure?

A) The usual charge is always set by the patient's insurance company.
B) The physician always fills in the amount to charge on the charge slip.
C) The charge appears from computer memory when the procedure is selected.
D) The charge will not be set until it is determined how much insurance will pay for the procedure.

Question 29

Which of the following is NOT a way that patients commonly make payments on their outstanding accounts?

A) Cash, check or credit payments at the time of an office visit
B) Checks sent through the mail
C) Automatic monthly payments made online from an Internet bank account
D) Online payments made by credit or debit card through the practice website

Question 30

What does it mean to close the day (close out the day)?

A) The manual day sheet can be destroyed.
B) All patients have been seen and staff can go home.
C) The medical assistant has posted all charges and can begin to post insurance payments.
D) No further accounts receivable charges, payments, or adjustments can be made using that date.

Question 31

A large check has to be written out for a piece of expensive equipment. The company selling the equipment to the practice wants to make sure that the check will clear the bank. How can the office pay for the equipment and satisfy the seller?

A) Issue a check with an ABA number
B) Obtain a cashier's check from the bank
C) Write a check on the practice checking account
D) Write a check on the office money-market account

Question 32

If there is a question about the amount of money that has been drawn on a check, what determines the legal amount?

A) The amount shown in figures
B) The amount written in words
C) Neither A nor B-the check is not valid if the amount in figures is not the same as the amount in words
D) None of the above

Question 33

Dr. Brown has a large bill that he has to pay for his professional liability (malpractice) insurance. Which account is the medical assistant most likely to use to pay this bill?

A) Office savings account
B) Office checking account
C) Office money market account
D) The doctor's personal checking account

Question 34

Which type of codes appear on most office itemized charge slips?

A) Diagnosis codes only
B) Procedure codes only
C) Both diagnosis and procedure codes
D) Codes do not usually appear on the itemized charge slip

Question 35

Which of the following is an example of a debit adjustment (increases the amount the patient owes)?

A) Professional courtesy
B) Discount for cash payment
C) Discount to an insurance company
D) Check returned by the bank for Not Sufficient Funds

Question 36

What is a valid system to reduce the number of manual checks that need to be written?

A) Use an online bill payment system.
B) Pay bills every six months instead of every month.
C) Delay ordering new supplies until the current supply is gone.
D) Accept payments from insurance companies by electronic transfer.

Question 37

Before leaving the office, the patient gives the medical assistant $10 on account. What type of entry does the medical assistant make to the computer billing program?

A) Charge
B) Ledger
C) Payment
D) Adjustment

Question 38

Many medical offices have some of their accounting duties performed by independent companies outside the office. What service(s) is/are commonly performed by such companies?

A) Managing the accounts receivable
B) Managing the accounts payable
C) Preparing payroll checks for office employees
D) Entering charges and payments for patient visits
E) All of the above

Question 39

How are items recorded on the day sheet (daily journal)?

A) In the order that transactions occur.
B) In alphabetic order by patient account.
C) It depends on the procedure used by the office.
D) By patient account number, lowest number first.

Question 40

How do money market accounts compare with checking accounts?

A) They usually pay a lower rate of interest
B) Checks must usually be written for a higher minimum amount
C) Money market accounts usually do not require a minimum balance
D) Neither type of account limits the number of checks that can be written each month

Question 41

The petty cash fund should be replenished by writing a check to return the petty cash fund to the original starting amount.

Question 42

A credit adjustment is a change to a patient's account that reduces the balance of a patient's account.

Question 43

When a patient charge is entered into a computerized medical billing system, the posting is reflected both in the patient ledger as well as the daily record of charges.

Question 44

The bag used to leave bank deposits in a night deposit bag may contain an electronic device to allow the bank to identify the owner of the deposit bag.

Question 45

Which statement best describes the petty cash account?

A) It does not require records to be kept.
B) It is used to purchase items that are not ordered regularly.
C) It is used for incidental items that are usually not very expensive.
D) It is replenished by taking $25 from patient receipts every week.
E) All of the above.

Question 46

How should checks that are received by the medical facility be endorsed?

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

Question 47

Which of the following is NOT a reason the bank statement may not agree with the office record for a checking account?

A) Not all the written checks have cleared the bank.
B) There may be a fee for a returned check that has to be subtracted.
C) There may be interest on the account that must be added to the balance.
D) The office may have written more checks than usual during the month.

Question 48

How often does the medical office usually make a bank deposit?

A) Daily
B) Weekly
C) As needed
D) Every other week

Question 49

What does it mean to successfully reconcile a bank statement?

A) The bank records and medical office records are in agreement.
B) The bank has credited all the deposits the office has made.
C) All of the checks that were written by the office have "cleared."
D) There are adequate funds in the office checking account to cover anticipated expenses.

Question 50

Genuine postal money orders contain a watermark that shows a picture of George Washington when held to the light.

Question 51

In a business checkbook, the stubs on the left side of the checkbook function as a running checkbook ledger.

Question 52

Which of the following is NOT necessary to balance the cash drawer at the end of the day?

A) Count the money in the drawer.
B) Leave the usual amount of cash-on-hand in the drawer.
C) Replenish the petty cash fund from the money after the cash-on-hand amount has been removed.
D) Add the remaining money to the daily bank deposit after the cash-on-hand amount has been removed.

Question 53

Which account keeps a record of cash disbursements?

A) Accounts payable
B) Accounts receivable
C) Money market account
D) The cash bookkeeping system

Question 54

When the medical assistant prepares the deposit slip, which of the following information for each check should be entered on the deposit itemization record?

A) MICR
B) ABA number
C) Name of each check writer
D) Checking account number

Question 55

The cash disbursements journal usually contains columns to track expenses by categories.

Question 56

Bookkeeping refers to the process of recording financial transactions, but accounting is a more general term used for the systematic recording and reporting of financial transactions.

Question 57

The account balance provided by the bank should always agree with the account balance of the medical office checkbook ledger.

Question 58

Medical computer billing programs have been developed based on the pegboard system of bookkeeping.

Question 59

When reconciling a bank statement, which amount must added to the office checkbook register before comparing the amount in the check register to the bank statement?

A) Any bank charges
B) Any interest earned
C) The amount of deposits that do not appear on the statement
D) Any automatic payments made during the statement period

Question 60

When can a signature stamp be used to endorse a check?

A) Never
B) When the check will be deposited
C) When the words Pay to the order of appear above the endorsement
D) When the check will be cashed by the individual whose signature is on the stamp