Which of the following accounts payable is typically the largest in a medical office?
payroll
Any payment the physician's office makes for goods or services is called
a disbursement
One of the most common or numerous disbursements is payment for
office supplies
Business checks with stubs attached are __ checks.
voucher
A type of check that states it is void after a certain time limit is a ___ check.
limited
Which type of check is usually used for payroll in the medical office?
limited
Which type of check is purchased from a bank, written on the bank's own checking account, and signed by a bank official?
cashier's
A standard personal or business check that the bank verifies and then sets aside the funds to guarantee payment is a __ check.
certified
A special bank check that allows the depositor to withdraw funds from her account only is called a __ check.
counter
Which of the following types of checks is preprinted and might be used by a physician to pay for out-of-town conference expenses?
traveler's
A physician may use a __ check when he wants to withdraw money from the bank account but forgot his checkbook.
counter
Which type of checks are preprinted in $10, $20, $50, and $100 denominations?
traveler's
Which type of check would state "Pay to the Order of Myself Only"?
counter
Which of the following is important because it helps to control expenses?
tracking
Today, a practice's financial summary is generally prepared by
practice management software
Which of the following demonstrates the practice's profitability by illustrating the practice's total income and expenses?
Statement of income and expense
Which of the following shows how much cash is available to cover expenses, to invest, or to take as profit?
cash flow statement
A physician may periodically review which of the following to ensure that the books balance?
trial balance
Which of the following are usually components of a practice's accounting system?
daily log and disbursements journal
The process of communicating the income and expenses of a business and its financial health is known as
accounting
The part of the accounting process that consists of the systematic recoding of business transactions is
bookkeeping
Which of the following is not a suggested practice for efficient bookkeeping procedures?
skip steps whenever possible
Which of the following is not an advantage of using a computerized bookkeeping system?
the bookkeeping system is available even if the power goes out
Another term for a write-it-once system is __ system.
pegboard
A double-entry bookkeeping system is based on the principle that the company's assets are equal to
capital plus its liabilities
The process of recording services provided, the fees charged, and payments received in a daily log is known as
journalizing
At the beginning of each day, if you are using a pegboard system, what is the first thing you should put on the pegboard?
daily log sheet
When you place a patient's ledger card on the pegboard, how should you position the card?
Align the ledger card's first blank line with the carbon strip under the next available superbill
If you receive payment from a patient by mail after the office visit, you should record it
on the patient's ledger card and the current day's daily log
When a patient has a credit balance,
the practice owes the patient money
When the office manager or physician decides that an account is uncollectable, you should
adjust the amount due off the acount
The part of a check that takes the form of a fraction and identifies the specific bank on which the check is drawn is the
ABA number
Which of the following is not a common type of endorsement?
mechanical endorsement
An endorsement that consists simply of the payee's signature is a
blank endorsement
A third-party endorsement is also known as a
special endorsement
An endorsement that specifies precisely how the check may be redeemed, such as only for deposit in the practice's bank account is a
restrictive endorsement
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
qualified endorsement
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," sig
Explain that office policy does not allow you to take third-party check
Jim Sanderson comes to the office today to pay the balance due on the statement you sent him last week. He presents the statement, showing an amount due of $96.75, and a money order for $96.75. What should you do?
Accept the money order and record it on the daily log and the patient's ledger card
The process of comparing the office financial records with the monthly statement from the bank is known as
reconciliation
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. W
Review each item on the statement against our records to find the $400 difference.
Which of the following statements is true about electronic banking?
The computer computes the new balance each time you record a check