Medical Office Procedures 9Th Edition By Nenna Bayes – Test Bank

Medical Office Procedures 9Th Edition By Nenna Bayes – Test Bank

Medical Office Procedures, 9e (Bayes)
Chapter 9 Practice Finances

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

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

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

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

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

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

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

8) A ________ is any person or business that makes arrangements for extending, renewing, or continuing credit.
A) Dealer
B) Creditor
C) Lender
D) Trader

9) A ________ account is any account from which the owner (patient) makes payments and or transfers.
A) Transaction
B) Transfer
C) Transit
D) Payment

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

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

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
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

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

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

16) Which type of endorsement is the safest and most commonly used endorsement in business?
A) Full
B) Blank
C) Restricted
D) Authorized

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

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
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

20) ________ earnings are salaries or wages paid to employees.
A) Indirect
B) Fixed
C) Direct
D) Non-fixed

21) ________ earnings are paid leaves or specific employer-paid benefit programs.
A) Indirect
B) Fixed
C) Direct
D) Non-fixed

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

23) Unemployment laws in most states require only the ________ to contribute to the unemployment insurance fund.
A) Worker
B) Patient
C) Employee
D) Employer

24) A medical practice is required by law to retain payroll data for ________ years.
A) 4
B) 5
C) 7
D) 10

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
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

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

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

29) With the accrual method, income is recorded as soon as it is ________.
A) Grossed
B) Netted
C) Earned
D) Warranted

30) A document containing any patient information is considered confidential; this includes ________ checks.
A) Restrictive
B) Shared
C) Municipal
D) Personal

31) Data input errors have a(n) ________ effect.
A) Wrinkle
B) Ripple
C) Swelling
D) Crumple

32) “Proof of posting” means that the ________ balance.
A) Columns
B) Accounts receivable
C) Accounts payable
D) Lines
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

34) The administrative medical assistant is responsible for preparing deposits and reconciling ________.
A) Income statements
B) Balance sheets
C) Revenue summaries
D) Bank statements

35) All of the checks received should be ________ as soon as they are accepted.
A) Sanctioned
B) Endorsed
C) Authorized
D) Validated

36) The checks and cash placed into the account belonging to the practice are called ________.
A) Deposits
B) Securities
C) Indemnities
D) Sureties

37) A check with a missing date or signature will be ________.
A) Refunded
B) Repaid
C) Returned
D) Restored

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

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
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

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

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

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

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
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

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.

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

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

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
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

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

52) What is used to record daily fees charged and payments received?
A) Income statement
B) Balance sheet
C) Daily journal
D) Restrictive sheet

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

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

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
56) Banking tasks require ________ accuracy, or correctness that is 100 percent.
A) Unconditional
B) Unmodified
C) Provisional
D) Absolute

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

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

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

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

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
62) When writing a check, it is recommended that the wording be ________.
A) Written in cursive
B) Printed
C) Digital
D) Written twice

63) In which type of endorsement may the check be cashed by anyone?
A) Blank
B) Full
C) Restrictive
D) Limiting

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”

65) On the deposit slip, cash is considered to be ________.
A) Bills only
B) Coins only
C) Bills and coins
D) Checks

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

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

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
69) Online banking is typically in ________ time and is up to date.
A) Delayed
B) Valid
C) Real
D) Factual

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

71) What tax governs the Social Security System?
A) FUTA
B) SUTA
C) FICA
D) SICA

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

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

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

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