Deck 34: Accounts Payable and Accounting Procedures

Question 1

The date by which payment should be made is called the:

A) payment date
B) invoice date
C) due date
D) date of receipt

Answer 1

due date

Question 2

To convert the gross collection ratio to a percentage,you:

A) double it
B) triple it
C) divide it by 100
D) multiply it by 100

Answer 2

multiply it by 100

Question 3

Which of the following is the best gross collection ratio?

A) 0.0
B) 0.5
C) 0.75
D) 1.0

Answer 3

1.0

Question 4

When invoices are held for payment,they are typically filed:

A) in chronological order
B) in reverse chronological order
C) alphabetically by industry
D) alphabetically by the supplier's name

Question 5

The A/R ratio has a goal of:

A) 2 months or more
B) 2 months or less
C) 1 month or more
D) 1 month or less

Question 6

It is typically the responsibility of the _____ to produce the values used in cost-benefit analysis.

A) accountant
B) bookkeeper
C) medical assistant
D) office manager

Question 7

A medical assistant working in accounts payable should:

A) have an accounting degree
B) pay bills on time only when it is convenient to do so
C) be highly organized
D) have a great deal of medical training

Question 8

The study and analysis of financial data as it applies to operational issues within a company is called _____ accounting.

A) operational
B) managerial
C) supplication
D) economic

Question 9

When a statement is received from a supplier,you should:

A) verify that everything on the invoice was received before making payment
B) promptly mail a check for the full amount due if funds are available
C) refrain from sending payment until a second notice is sent
D) mail a check for no more than 50 percent of the amount due if funds are available

Question 10

If your receipts for 4 months add up to $200,000,what is your average monthly gross production?

A) $800,000
B) $160,000
C) $50,000
D) $200,000

Question 11

If the petty cash fund was originally $50,and it has been depleted down to $3,a new petty cash check should be written for:

A) $50
B) $53
C) $100
D) $47

Question 12

Which of the following is not included in the company details on an invoice?

A) invoice number
B) company address
C) company name
D) company email address

Question 13

Cost-benefit analysis is not:

A) part of good budgeting and accounting practices
B) an advanced,complex type of cost analysis
C) used to help determine the true cost of providing services
D) commonly determined with the help of accounting software

Question 14

The _____ formula demonstrates a cost of a specific procedure or service.

A) cost-benefit analysis
B) gross collection ratio
C) cost ratio
D) net collection ratio

Question 15

When your medical office receives an invoice from a supplier,in which section does the name of the medical practice appear?

A) company details
B) client details
C) payment terms
D) fees

Question 16

The _____ demonstrates the value of a business.

A) net worth
B) assets
C) liabilities
D) accounts payable

Question 17

A(n)_____ is also known as a statement of financial position.

A) liabilities statement
B) balance sheet
C) equity form
D) income statement

Question 18

The petty cash fund is established by writing a check payable to "petty cash" or:

A) the name of the person who manages the petty cash fund
B) the name of the bank from which the money will be drawn
C) "cash"
D) "recipient"

Question 19

The ____ ratio is also known as the adjusted collection ratio.

A) gross collection
B) net collection
C) write-off
D) write-up

Question 20

Which of the following is not commonly considered an overhead expense?

A) office supplies
B) postage
C) occupancy insurance
D) payroll

Question 21

Match each term with its definition.
Recording of financial transactions of a business

A)accounts payable
B)expenditure
C)invoice
D)PDF
E)fees
F)petty cash
G)accounting
H)bookkeeping
I)operating information
J)managerial accounting information

Question 22

Match each term with its definition.
Total amounts owed by a practice to suppliers and other service providers for regular business operating expenses

A)accounts payable
B)expenditure
C)invoice
D)PDF
E)fees
F)petty cash
G)accounting
H)bookkeeping
I)operating information
J)managerial accounting information

Question 23

Match each term with its definition.
Total Payments for the Specific Period ÷ Total Charges (with the write-offs deducted from the total charges)

A)accounting formula
B)accounts receivable ratio formula
C)gross collection ratio formula
D)net collection ratio formula
E)cost ratio formula
F)assets
G)write-offs
H)liabilities
I)accounts receivable
J)income statement

Question 24

Match each term with its definition.
File format used when mailing invoices to prevent alteration of the invoice

A)accounts payable
B)expenditure
C)invoice
D)PDF
E)fees
F)petty cash
G)accounting
H)bookkeeping
I)operating information
J)managerial accounting information

Question 25

Match each term with its definition.
Acquired material,property,and/or labor in exchange for money

A)accounts payable
B)expenditure
C)invoice
D)PDF
E)fees
F)petty cash
G)accounting
H)bookkeeping
I)operating information
J)managerial accounting information

Question 26

Match each term with its definition.
Debts or accounts payable owed by the business

A)accounting formula
B)accounts receivable ratio formula
C)gross collection ratio formula
D)net collection ratio formula
E)cost ratio formula
F)assets
G)write-offs
H)liabilities
I)accounts receivable
J)income statement

Question 27

Match each term with its definition.
Description of the services provided and the total amount due printed on an invoice

A)accounts payable
B)expenditure
C)invoice
D)PDF
E)fees
F)petty cash
G)accounting
H)bookkeeping
I)operating information
J)managerial accounting information

Question 28

Match each term with its definition.
System of recording and summarizing business and financial transactions and analyzing,verifying,and reporting the results

A)accounts payable
B)expenditure
C)invoice
D)PDF
E)fees
F)petty cash
G)accounting
H)bookkeeping
I)operating information
J)managerial accounting information

Question 29

Match each term with its definition.
Document that includes itemization of goods and purchases or services provided together with the charges and terms of the agreement

A)accounts payable
B)expenditure
C)invoice
D)PDF
E)fees
F)petty cash
G)accounting
H)bookkeeping
I)operating information
J)managerial accounting information

Question 30

Match each term with its definition.
Assets − Liabilities = Net Worth

A)accounting formula
B)accounts receivable ratio formula
C)gross collection ratio formula
D)net collection ratio formula
E)cost ratio formula
F)assets
G)write-offs
H)liabilities
I)accounts receivable
J)income statement

Question 31

Match each term with its definition.
All the outstanding amounts still due from a patient or customer to a doctor

A)accounting formula
B)accounts receivable ratio formula
C)gross collection ratio formula
D)net collection ratio formula
E)cost ratio formula
F)assets
G)write-offs
H)liabilities
I)accounts receivable
J)income statement

Question 32

Match each term with its definition.
Current A/R Balance ÷ Average Monthly Gross Production

A)accounting formula
B)accounts receivable ratio formula
C)gross collection ratio formula
D)net collection ratio formula
E)cost ratio formula
F)assets
G)write-offs
H)liabilities
I)accounts receivable
J)income statement

Question 33

Match each term with its definition.
Demonstrates the profit and expenses for a given month and also includes year-to-date information for a given year

A)accounting formula
B)accounts receivable ratio formula
C)gross collection ratio formula
D)net collection ratio formula
E)cost ratio formula
F)assets
G)write-offs
H)liabilities
I)accounts receivable
J)income statement

Question 34

Match each term with its definition.
Money and items of value in a business

A)accounting formula
B)accounts receivable ratio formula
C)gross collection ratio formula
D)net collection ratio formula
E)cost ratio formula
F)assets
G)write-offs
H)liabilities
I)accounts receivable
J)income statement

Question 35

Match each term with its definition.
Total Payments for the Specific Period ÷ Total Charges (without considering write-offs)

A)accounting formula
B)accounts receivable ratio formula
C)gross collection ratio formula
D)net collection ratio formula
E)cost ratio formula
F)assets
G)write-offs
H)liabilities
I)accounts receivable
J)income statement

Question 36

Match each term with its definition.
Information that is needed on a day-to-day basis in order for a company to conduct business

A)accounts payable
B)expenditure
C)invoice
D)PDF
E)fees
F)petty cash
G)accounting
H)bookkeeping
I)operating information
J)managerial accounting information

Question 37

Match each term with its definition.
Total Expenses ÷ Total Number of Procedures for One Month

A)accounting formula
B)accounts receivable ratio formula
C)gross collection ratio formula
D)net collection ratio formula
E)cost ratio formula
F)assets
G)write-offs
H)liabilities
I)accounts receivable
J)income statement

Question 38

Match each term with its definition.
Fund used when small payments are required

A)accounts payable
B)expenditure
C)invoice
D)PDF
E)fees
F)petty cash
G)accounting
H)bookkeeping
I)operating information
J)managerial accounting information

Question 39

Match each term with its definition.
Information used to help managers make informed business decisions when it comes to salary adjustments,benefits,office purchases,and so on

A)accounts payable
B)expenditure
C)invoice
D)PDF
E)fees
F)petty cash
G)accounting
H)bookkeeping
I)operating information
J)managerial accounting information

Question 40

Match each term with its definition.
Charges deemed uncollectible by any business

A)accounting formula
B)accounts receivable ratio formula
C)gross collection ratio formula
D)net collection ratio formula
E)cost ratio formula
F)assets
G)write-offs
H)liabilities
I)accounts receivable
J)income statement

Question 41

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​The section of the balance sheet is determined by three items: revenues,expenses,and dividends

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 42

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​Building,equipment,cash

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 43

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​The ownership claim on total assets

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 44

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​Money borrowed (loans)to purchase major assets

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 45

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​The quality of service provided,the age and health of the owner,and employee morale are not included because they cannot be quantified in terms of money

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 46

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​The value determined by the market for similar buildings/properties at the time of sale

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 47

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​Law firms,medical practices,CPAs

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 48

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​Money borrowed to purchase merchandise on credit

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 49

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​Total amount paid in by stockholders

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 50

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
The medical office purchases office supplies,medications,utilities,and so on

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 51

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​Creditors,mortgage,etc.

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 52

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​Resources owned by a business

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 53

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​A business owned by one person,who is often the manager/operator of the business;the owner's net worth or equity (which consists of the amount by which the fair market value of all assets exceed liabilities)

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 54

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​Personal living expenses are kept separate from the expenses of the business

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 55

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​If an office building is bought for $700,000,this is what the amount you pay for it is called

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 56

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​Cash or other assets from stockholders in exchange for capital stock

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 57

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​Business owned by two or more persons;each person is generally personally liable for the debts of this entity

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 58

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​One of two main assumptions in GAAP,requiring that transaction data can only be expressed in terms of money

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 59

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​Business organized under state law as a separate legal entity,with ownership divided into transferable shares of stock.

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 60

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
​Most large companies: Wal-Mart,General Motors,General Electric,Intel,Apple,etc.

A)accounts payable
B)​assets
C)​corporation
D)​cost
E)​economic entity assumption
F)​liabilities
G)​market value
H)​monetary unit assumption
I)​note payable
J)​(paid-in)capital
K)​partnership
L)​proprietorship
M)​retained earnings
N)stockholders' equity

Question 61

​An example of a bad debt ____________ would be if a patient owes the office $200 and the patient dies unexpectedly,leaving the remaining balance of $200 uncollectible.

A) ​write-down
B) ​write-off
C) ​non-collection
D) ​forgiveness

Question 62

​Accounting systems include all but which of the following?

A) ​practice manager
B) ​pegboard
C) ​single-entry
D) ​double-entry

Question 63

​Daily __________ is an integral function of financial responsibilities in the practice.

A) ​claims scrubbing
B) ​visit capture
C) ​balancing
D) ​claims management

Question 64

​Components of the pegboard system include:

A) physician's day sheet
B) ​transaction slip
C) ​patient ledger card
D) ​all of the above

Question 65

​Although not as commonplace today,the _____________ bookkeeping systems have been used effectively for many years,are relatively inexpensive,provide hard copies for account balances,and are easy to use.

A) ​pegboard
B) ​practice management
C) ​cost-ratio analysis
D) ​cost-benefit analysis