Ch. 21 Financial Management – Flashcards
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What accounts payable is typically the largest in the medical office?
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Payroll
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Any payment the physician's office makes for goods or services is called__________________________.
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a disbursement
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One of the most common or numerous disbursements is payment for___________________.
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Office supplies
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Business checks with stubs attached are_____________checks.
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voucher
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A type of check that states it is void after a certain time limit is a _____________ check.
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limited
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What type of check is usually used for payroll in the medical office?
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Limited
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What type of check is purchased from a bank, written on the bank's own checking account, and signed by a bank official?
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Cashier's
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A standard personal or business check that the bank verifies and then sets aside the funds to guarantee payment is a _____________ check.
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Certified
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A special bank check that allows the depositor to withdraw funds from her account only is called a______________.
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counter
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What types of checks is preprinted and might be used by a physician to pay for out of town conference expenses?
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Traveler's
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A physician may use a ______________ check when he wants to withdraw money from the bank account but forgot his checkbook.
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counter
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What type of checks are preprinted in $10, $20, $50 and $100 denominations.
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Traveler's
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What type of check would state "Pay to the Order of Myself Only"?
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Counter
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What is important because it helps to control expenses?
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Tracking
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Today, a practice's financial summary is generally prepared by ___________________.
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practice management software
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What demonstrates the practice's profitability by illustrating the practice's total income and expenses?
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Statement of income and expense
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What shows how much cash is available to cover expenses, to invest, or to take as profit?
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Cash flow statement
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A physician may periodically review which of the following to ensure that the books balance?
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Trial balance
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What are usually components of a practice's accounting system?
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Daily log and disbursement journal
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The process of communicating the income and expenses of a business and its financial health is known as____________.
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accounting
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The part of the accounting process that consists of the systematic recording of business transactions is ___________.
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bookkeeping
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What is NOT a suggested practice for efficient bookkeeping procedures?
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skip steps whenever possible
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What is NOT an advantage of using a computerized bookkeeping system?
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the bookkeeping system is available even if the power goes out.
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Another term for a write-it-once system is _______________system.
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pegboard
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A double entry bookkeeping system is based on the principle that the company's assets are equal to ________________.
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capital plus its liabilities
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The process of recording services provided, the fees charged, and payments received in a daily log is known as ____________________.
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Journalizing
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At the beginning of each day, if you are using a pegboard system, what is the first thing you should put on the pegboard?
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Daily log sheets
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When you place a patient's ledger card on the pegboard, how should you position the card?
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Align the ledger card's first blank line with the carbon strip under the next available superbill.
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If you receive payment from a patient by mail after the office visit, you should should record it ____________________.
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on the patient's ledger card and the current day's daily log.
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When a patient has a credit balance,____________________.
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the practice owes the patient money.
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When the office manager or physician decided that an account is uncollectable, you should _________________.
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adjust the amount due off the account.
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The part of a check that takes the form of a fraction and identifies the specific bank on which a check is drawn is the_________________.
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ABA number
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What is NOT a common type of endorsement?
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Mechanical endorsement
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A third-party endorsement is also known as a ____________.
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special endorsement
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An endorsement that specifies precisely how the check may be redeemed, such as only for deposit in the practice's bank account, is a ____________________.
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Restrictive endorsement
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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 _____________________________.
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Qualified endorsement
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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?
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Accept the money order and record it on the daily log and the patient's ledger card.
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The process of comparing the office financial record with the monthly statement from the bank is known as _____________.
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reconciliation
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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?
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Review each item on the statement against your records to find the $400 difference
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What statement is TRUE about electronic banking?
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The computer computes the new balance each time you record a check.
