Question 1

Goods or properties that have a dollar value, such as the medical practice building, bank accounts, office equipment, and accounts receivable, are called ________.

Accepted Answer

The answer of Goods or properties that have a dollar...

Question 2

The ________ appears as a fraction on the upper edge of all printed checks and identifies the geographic area and specific bank on which the check is drawn.

Accepted Answer

The answer of The ________ appears as a fraction on...

Question 3

A(n) ________ check is a payer's check written and signed by the payer; the bank withdraws the money from the payer's account and guarantees that the check will be paid when submitted.

Accepted Answer

The answer of A(n) ________ check is a payer's check...

Question 4

After receiving a check, immediately ________ it to prevent the check from being cashed if it is lost or stolen.

Accepted Answer

The answer of After receiving a check, immediately ________ it...

Question 5

A type of endorsement often used by attorneys when they accept a check on behalf of a client but have no personal claim on the transaction is _____.

Accepted Answer

The answer of A type of endorsement often used by...

Question 6

Another term for a statement of income and expense is ________ statement.

Accepted Answer

The answer of Another term for a statement of income...

Question 7

An overpayment on a patient's account results in a negative number, or ________ balance.

Accepted Answer

The answer of An overpayment on a patient's account results...

Question 8

You are reconciling the office checking account with the bank statement that arrived this morning. After accounting for unrecorded deposits, checks, and debits, you find that the total in your practice records is $11,760 and the bank's total is $12, 160. What is the first thing you should do?

Accepted Answer

Reviewing each item on the statement against your records is the first step in identifying and understanding the source of the discrepancy. This process helps in pinpointing the exact cause of the difference, which could be due to unrecorded transactions, errors, or omissions in either the bank's records or your own.

Question 9

A third-party endorsement is also known as a ____.

Accepted Answer

A third-party endorsement is also known as a special endorsement. This involves signing a check or other negotiable instrument on the back and specifying a third party to whom the document is to be payable, effectively transferring the rights to the document to that third party.

Question 10

An endorsement that consists simply of the payee's signature is a ____.

Accepted Answer

A blank endorsement consists of nothing but the payee's signature, which allows anyone in possession of the endorsed item to cash or deposit it.

Question 11

The process of communicating the income and expenses of a business and its financial health is known as ________.

Accepted Answer

The answer of The process of communicating the income and...

Question 12

Charise was seen today for an ongoing infection. When she comes to the counter to check out, you tell her that the charge for today is $54. Charise takes her $260 paycheck out of her pocket and endorses it "Pay to the order of BWW Medical Associates," signs it "Charise Williams," and hands it to you. What should you do?

Accepted Answer

Office policies often do not allow accepting third-party checks due to the risk of fraud and complications in processing.

Question 13

The process of comparing the office financial records with the monthly statement from the bank is known as ____.

Accepted Answer

Reconciliation is the process of ensuring that two sets of records (usually the balances of two accounts) are in agreement. In the context of financial records and bank statements, reconciliation involves comparing the company's own financial records against the bank's records to identify any discrepancies and make adjustments as necessary. This is crucial for accurate financial reporting and management.

Question 14

The process of keeping a daily log of the patient charges and payments received from patients each day is called ________.

Accepted Answer

The answer of The process of keeping a daily log...

Question 15

An endorsement that specifies precisely how the check may be redeemed, such as only for deposit in the practice's bank account, is a ____.

Accepted Answer

A restrictive endorsement limits the use of the check to the purpose stated in the endorsement, such as depositing it into a specific account, which matches the description given.

Question 16

A(n) ________ statement shows how much revenue is available to cover expenses, to invest, or to take as profit.

Accepted Answer

The answer of A(n) ________ statement shows how much revenue...

Question 17

Jim Sanderson comes to the office today to pay the balance due on his statement. He presents the statement, showing an amount due of $96.75, and a money order for $96.75. How should this payment be handled?

Accepted Answer

Accepting the money order and recording it both on the daily log and the patient's ledger card is the correct way to handle the payment. Money orders are a valid form of payment, similar to checks, and should be processed accordingly.

Question 18

Which of the following statements is true about electronic banking?

Accepted Answer

The computer computes the new balance each time you record a check.

Question 19

Which of the following is not a common type of endorsement?

Accepted Answer

Mechanical endorsement is not a common type of endorsement. Common types include restrictive, qualified, blank, and special endorsements, which are used in various contexts to endorse checks or other negotiable instruments. Mechanical endorsement does not fit within the standard categorization.

Question 20

A(n) ________ check is a check issued on bank paper and signed by a bank representative; it is usually purchased by people who do not have checking accounts.

Accepted Answer

The answer of A(n) ________ check is a check issued...

Quiz 20: Patient Collections and Financial Management