Administrative Practice

Question 1

When a patient declares bankruptcy, the medical office must:

A) turn over the patient’s balance owed to a collection agency
B) write off the balance owed on the account
C) sue the patient for the balance owed on the account
D) collect unpaid bills through the court-appointed representative
E) set up a loan repayment plan with interest

Answer 1

D) collect unpaid bills through the court-appointed representative

Question 2

The form enclosed with merchandise ordered from a vendor that states the contents of the package and the amount owed is a(n):

A) ledger
B) invoice
C) purchase order
D) receipt

Answer 2

B) invoice

Question 3

If a check is written but not used, what is written across the front of the check?

A) void
B) non-sufficient funds 
C) do not use 
D) error
E) reconcile

Answer 3

A) void

Question 4

The amount of money earned before taxes or deductions are taken out is called:

A) net income
B) total income
C) prior earnings
D) gross income

Answer 4

D) gross income

Question 5

The money owed by the physician for items such as rent, utilities, and payroll is referred to as:

A) financial responsibility
B) accounts receivable
C) business expenses
D) accounts payable

Answer 5

D) accounts payable

Question 6

To balance a checkbook, you must have:

A) a copy of all the bills paid in the month to verify all checks written
B) paycheck stubs to prove deposits made
C) the monthly bank statement
D) a copy of all endorsed checks
E) day sheets

Answer 6

C) the monthly bank statement

Question 7

When a discount or refund is applied to an account, this is referred to as:

A) charge 
B) adjustment
C) payable
D) receivable 
E) withholding

Answer 7

B) adjustment