Admin. Procedures Chapter 24 – Flashcards
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accounts payable
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debts incurred and not yet payed
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accounts receivable
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amounts owed to the physician
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accounts receivable trial balance
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a method of accounting in which income is recorded when earned and expenses are recorded when incurred
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admonition
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counsel or warning against fault or oversight
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assets
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the entire property of a person, association, corporation or estate applicable or subject to payment of debts
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balance sheet
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a financial statement for a specific date that shows the total assets, liabilities, and capital of the business
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bookkeeping
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the recording of business and accounting transactions
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cash basis of accounting
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a method of accounting in which income is recorded when received and expenses are recorded when paid
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cash flow statement
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financial summary for a specific period that shows the beginning balance on hand, the receipts and disbursements during the period, and the balances on hand at the end of the period
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controls
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a standard of comparison to make sure answers obtained are accurate
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disbursements journal
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a summary of accounts paid out
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entry
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a record of notation of occurrence, transaction, or proceeding
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equities
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the monetary value of a property or of an interest in property excess of claims or liens against it
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in balance
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the state in which the total ending balances of patient ledgers equals the total of accounts receivable
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invoice
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a paper describing a purchase and the amount due
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liabilities
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things that are owed; debts
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packing slip
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an itemized list of articles included in a shipping package. giving the quantity and description of the package contents
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petty cash fund
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a fund maintained to pay small, unpredictable cash expenditures
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statement
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request for payment
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statement of income and expense
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summary of all income and expenses for a given period
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subsidiary
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supporting other documents or records
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trial balance
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method of checking the accuracy of accounts
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what items should appear on the financial record of any business at all times
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1. how much was earned in a given period 2. how much was collected 3. how much is owed 4. distribution of expenses incurred
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when writing numbers, keep the columns straight and write..
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well-formed figures
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what item must be shown on the manual disbursement journal
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1. every amount paid out 2. date and check number 3. purpose of payment
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name two common accounting systems used in medical offices
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1. single entry system 2. double entry system
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accounting
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a four staged process
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list three cardinal rules of bookkeeping
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1. good penmanship 2. keep columns straight and write well formed figures 3. carry decimal points correctly
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list two disadvantages of a single entry system
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1. provides only simple summary errors 2. difficult to locate
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what records on employees must be included for the IRS
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1. social security number of employee 2. number of withholding allowances claimed 3. amount of gross salary 4. all deductions for social security and medicare taxes
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what is form 940 and when must it be filed
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federal employment act, on or before January 31st
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seven expense categories often found in a physician's office budget
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1. insurance 2. salaries and wages 3. supplies 4. loan payments 5. advertising and promotions 6. legal and accounting 7. taxes
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single entry system
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basic and usually small business inexpensive, easy to use and require little training
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double entry systems
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inexpensive but requires a trained, experienced bookkeeper transactions must be recorded manually or by computer
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pegboard/write-it-once system
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3 sections shows the accounts have balanced for the day
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ss-5
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for a person to apply for a social security number if they do not have one
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w-2
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employees annual wages and taxes withheld from their paycheck
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w-3
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showing total earnings, medicare wages, social security wages, and withholding for all employees encompassing the entire year
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w-4
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tells the employer the correct amount of tax to withhold from an employee's paycheck
