Deck 9: Practice Finances

Question 1

A record of services rendered, daily fees charged, payments received, and adjustments is a _________.

A) Ledger
B) Daily journal
C) Charge/receipt slip
D) Summary

Answer 1

Daily journal

Question 2

Which of these provides a record of the physician's services and charges?

A) Ledger
B) Daily Journal
C) Charge/receipt slip
D) Summary

Answer 2

Charge/receipt slip

Question 3

Which of the following is also referred to as a patient encounter form?

A) Charge/receipt slip
B) Daily journal
C) Summary
D) Ledger

Answer 3

Charge/receipt slip

Question 4

Which of the following contain a patient's name, services rendered, charge, payment, and balance?

A) Summaries
B) Daily journals
C) Chart/receipt slips
D) Ledgers

Question 5

Which of the following show the daily charges and payments for an entire month?

A) Summaries
B) Daily journals
C) Charge/receipt slips
D) Ledgers

Question 6

Which important "snap-shot" of the practice shows profit and loss for a stated period of, such as a quarter or year?

A) Summaries
B) Daily journals
C) Ledgers
D) Income statements

Question 7

On what date did the Red Flag Program Certification Act amend the original definition of a creditor?

A) December 31, 2013
B) December 31, 2012
C) December 31, 2011
D) December 31, 2010

Question 8

A _______________ is any person or business that makes arrangements for extending, renewing, or continuing credit.

A) Dealer
B) Creditor
C) Lender
D) Trader

Question 9

A _______________ account is any account from which the owner (patient) makes payments and or transfers.

A) Transaction
B) Transfer
C) Transit
D) Payment

Question 10

An example of a primary identifier is:

A) A social security card
B) An insurance card
C) A voter registration card
D) A valid driver's license

Question 11

An example of a secondary identifier is:

A) A valid driver's license
B) A state ID card
C) A social security card
D) A valid passport

Question 12

A check that is dated in the future and cannot be cashed until a future date is known as a(n):

A) Predated check
B) Postdated check
C) Third-party check
D) Annotated check

Question 13

A check that refers not to an insurer but to anyone other than the patient is known as a(n):

A) Predated check
B) Postdated check
C) Third-party check
D) Annotated check

Question 14

In this type of endorsement, the signature of the person whom the check is payable is placed on the back of the check.

A) Blank
B) Full
C) Restricted
D) Authorized

Question 15

Which type of endorsement indicates the person, company, account number, or bank to which the check is being transferred, followed by the payee's name?

A) Full
B) Blank
C) Restricted
D) Authorized

Question 16

Which type of endorsement is the safest and most commonly used endorsement in business?

A) Full
B) Blank
C) Restricted
D) Authorized

Question 17

When manually preparing any banking document, only __________ or __________ ink should be used.

A) Black or green
B) Blue or red
C) Blue or black
D) Black or red

Question 18

Which form must be completed and filed with the federal government within three business days of the date when employment begins?

A) W2
B) I-9
C) W4
D) I-10

Question 19

All employers are required to have an EIN number. What does EIN stand for?

A) Employer ID number
B) Employee ID number
C) Employment ID number
D) Employed ID number

Question 20

______________ earnings are salaries or wages paid to employees.

A) Indirect
B) Fixed
C) Direct
D) Non-fixed

Question 21

_____________ earnings are paid leaves or specific employer-paid benefit programs.

A) Indirect
B) Fixed
C) Direct
D) Non-fixed

Question 22

When employees are first hired, they must complete a(n) __________________ form, on which they state the number of allowances or exemptions to be used when the employer is calculating how much money to withhold from their salaries as deductions.

A) C-4
B) W-4
C) W-2
D) I-9

Question 23

Unemployment laws in most states require only the __________ to contribute to the unemployment insurance fund.

A) Worker
B) Patient
C) Employee
D) Employer

Question 24

A medical practice is required by law to retain payroll data for _____ years.

A) 4
B) 5
C) 7
D) 10

Question 25

The money for federal tax withholding payments and FICA payments must be made into a federal deposit account in a federal reserve bank at least how often?

A) Quarterly
B) Annually
C) Bi-monthly
D) Monthly

Question 26

Every day, the charges are added and the payments are subtracted from the previous day's balance. The result is the current day's _________.

A) Active balance
B) True balance
C) Accounts receivable balance
D) Accounts payable balance

Question 27

Federal legislation now grants electronic signatures, or e-signatures, the same legal standing as printed signatures. When was that legislation signed?

A) June 2004
B) June 2005
C) June 2002
D) June 2000

Question 28

Accounting for the medical practice may be done in one of two ways: on a cash basis or on an _________ basis.

A) Accrual
B) Accumulation
C) Accretion
D) Agglomeration

Question 29

With the accrual method, income is recorded as soon as it is __________.

A) Grossed
B) Netted
C) Earned
D) Warranted

Question 30

A document containing any patient information is considered confidential; this includes __________ checks.

A) Restrictive
B) Shared
C) Municipal
D) Personal

Question 31

Data input errors have an _______________ effect.

A) Wrinkle
B) Ripple
C) Swelling
D) Crumple

Question 32

"Proof of posting" means that the _______________ balance.

A) Columns
B) Accounts receivable
C) Accounts payable
D) Lines

Question 33

There are two main types of bookkeeping: single-entry method and _________ method.

A) Double-entry
B) Identical-entry
C) Solitary-entry
D) Distance-entry

Question 34

The administrative medical assistant is responsible for preparing deposits and reconciling _______________.

A) Income statements
B) Balance sheets
C) Revenue summaries
D) Bank statements

Question 35

All of the checks received should be ________________ as soon as they are accepted.

A) Sanctioned
B) Endorsed
C) Authorized
D) Validated

Question 36

The checks and cash placed into the account belonging to the practice are called __________.

A) Deposits
B) Securities
C) Indemnities
D) Sureties

Question 37

A check with a missing date or signature will be __________.

A) Refunded
B) Repaid
C) Returned
D) Restored

Question 38

The total earnings of all of the employees in the practice is called the __________.

A) Accounts receivable
B) Accounts payable
C) Daily ledger
D) Payroll

Question 39

When total deductions are taken from gross earnings, the result is the employee's _______________.

A) Net earnings
B) Remaining earnings
C) Disposable earnings
D) Residual earnings

Question 40

An itemized statement, either hardcopy or electronic, of gross pay, deductions, and net pay, included with the employee's pay, is called a __________ statement.

A) Disposable
B) Net pay
C) Residual
D) Reconciled

Question 41

Two ways for accounting in the medical practice are on a(n) _________ basis and a(n) ___________ basis.

A) Accounting; cash
B) Financial; accrual
C) Credit; financial
D) Cash; accrual

Question 42

All income prior to deductions is categorized and reported as which of these?

A) Aggregate income
B) Gross income
C) Net income
D) Cash income

Question 43

Dr. Crist is considering purchasing her own EKG equipment to perform the procedure at the office instead of renting the equipment from a DME (durable medical equipment) distributor. She asked Tyson (her administrative medical assistant) to give her the total number of EKGs performed and the revenue generated for the month of September. Which of the following reports should Tyson reference for the information?

A) Aging report
B) Procedure day sheet
C) Practice analysis report
D) Income statement

Question 44

To prepare for sending out patient statements for Dr. Crist's practice, Tyson needs to know which accounts are more than 30 days past due. Which of the following reports should he reference for the information?

A) Aging reports
B) Procedure day sheet
C) Practice analysis report
D) Income statement

Question 45

Since Dr. Crist is a cardiologist, she performs many high-cost procedures, which require her patients to establish a monthly payment schedule. Her office extends credit in accordance with the Truth in Lending Act. Based on extending credit, the practice may be considered a:

A) FICA employer
B) FUTA employer
C) Red flag-covered account
D) Red flag creditor

Question 46

Tyson has been asked by Dr. Crist to establish policies and procedures to protect patients from identity theft. Which of the following is not an identity theft alert?

A) A patient requests a change of address.
B) A patient is billed for a service she did not receive.
C) The name on a check is different from the patient's name.
D) Medical record of treatment is consistent with physician exam.

Question 47

The monthly bank statement shows a balance of $5,060.13. Three checks in the amounts of $89.50, $310.92, and $25.00 are still outstanding. What is the actual available balance of the checking account?

A) $5,485.55
B) $5,060.13
C) The available balance cannot be determined.
D) $4,634.71

Question 48

The monthly bank statement shows a balance of $5,060.13. Three checks in the amounts of $89.50, $310.92, and $25.00 are still outstanding. Calculate the monthly service charge of $10 into the actual available balance. What is the actual available balance after the service charge?

A) $5,495.55
B) $5,050.13
C) The available balance cannot be determined.
D) $4,624.71

Question 49

The methodical recording, classifying, and summarizing of business transactions in the medical office is called ____________________.

A) Accounting
B) Bookkeeping
C) Accounts payable
D) Accounts receivable

Question 50

The part of the process that is the accurate recording of transactions is called ____________.

A) Accounting
B) Bookkeeping
C) Accounts payable
D) Accounts receivable

Question 51

In all businesses, the managers speak of the importance of the _______________, the financial statement for a particular date that indicates the total assets (possessions of value, such as equipment), liabilities (debts), and capital (available dollars).

A) Balance sheet
B) Accounts receivable
C) Accounts payable
D) Reconciling

Question 52

What is used to record daily fees charged and payments received?

A) Income statement
B) Balance sheet
C) Daily journal
D) Restrictive sheet

Question 53

What is the report called in Medisoft that numerically lists all procedures performed on a given day?

A) Accounts receivable day sheet
B) Balance day sheet
C) Procedure day sheet
D) Posting day sheet

Question 54

Which type of bookkeeping system do users find to be a difficult system because it is hard to recognize errors?

A) Single-entry
B) Double-entry
C) Distinct-entry
D) General-entry

Question 55

Which type of bookkeeping method is based on the accounting equation: assets equal liabilities plus owner equity?

A) Single-entry
B) Double-entry
C) Distinct-entry
D) General-entry

Question 56

Banking tasks require _______________ accuracy, or correctness that is 100 percent.

A) Unconditional
B) Unmodified
C) Provisional
D) Absolute

Question 57

An order (written or electronic) to a bank to pay a specific amount of money to another party is referred to as a(n) ____________.

A) Check
B) Payment
C) Instruction
D) Directive

Question 58

What is money paid by the bank to depositors in return for the bank's use of depositor money?

A) Capital
B) Currency
C) Accounts receivable
D) Interest

Question 59

For a check to be ____________________ (to indicate the legal transfer of money), it must meet several requirements.

A) Negotiable
B) Transferable
C) Exchangeable
D) Conveyable

Question 60

To be negotiable, a check must state the specific amount to be paid, be made out (made payable) to the payee, specify the date on which payment is to be made, be signed by the payer, and ________________________________________.

A) Have a date other than the current date on the check
B) Have a third-party name on the check
C) Carry the name of the bank that is making the payment
D) Have the notation "paid in full" written on the check

Question 61

What type of check may be expired and nonnegotiable?

A) Postdated checks
B) Predated checks
C) Third-party checks
D) Paid-in-full checks

Question 62

When writing a check, it is recommended that the wording be _______________.

A) Written in cursive
B) Printed
C) Digital
D) Written twice

Question 63

In which type of endorsement may the check be cashed by anyone?

A) Blank
B) Full
C) Restrictive
D) Limiting

Question 64

To be considered a "restricted" check, it must be marked ______________________.

A) "Restrictive Endorsement"
B) "Paid in Full"
C) "Limited Payment"
D) "For Deposit Only"

Question 65

On the deposit slip, cash is considered to be ______________.

A) Bills only
B) Coins only
C) Bills and coins
D) Checks

Question 66

When a check is returned because there is not enough money in the account, it is called an ______ check.

A) NSF
B) SFF
C) NFS
D) FSN

Question 67

When an NSF check is received, you need to make a(n) ___________ entry in the patient's account.

A) Credit
B) Debit
C) Endorsement
D) Reconciliation

Question 68

On the deposit slip for today, the practice has $103.00 in cash, $0.57 in coins, and $1,250.00 in checks, and the less cash received is $25.00. What is the total deposit for the day?

A) $1,353.57
B) $1,378.57
C) $1,328.57
D) $1,245.00

Question 69

Online banking is typically in ___________ time and is up to date.

A) Delayed
B) Valid
C) Real
D) Factual

Question 70

What type of fund is used for small business expenses?

A) Float fund
B) Petty cash fund
C) Ready fund
D) Coinage and cash fund

Question 71

What tax governs the Social Security System?

A) FUTA
B) SUTA
C) FICA
D) SICA

Question 72

Employers are required to file _______ tax returns, Form 941, to report federal income and FICA taxes withheld from employee paychecks.

A) Weekly
B) Monthly
C) Quarterly
D) Yearly

Question 73

Employers must prepare a(n) _____, showing wages and deductions, for each employee who received earnings during the previous year.

A) W-2
B) W-4
C) SS-4
D) I-9

Question 74

What is it called when the employee's net pay is automatically deposited into the employee's account?

A) Guarantee deposit
B) Debit deposit
C) Credit deposit
D) Direct deposit

Question 75

When the medical office deposits money directly into the employee's account, it is done through a procedure called _____.

A) EFT
B) FTE
C) TEF
D) ETA