Chapter 2: Basic Bookkeeping Principles Flashcards
What is Bookkeeping?
The daily recording of the financial transactions of a business.
What is Bookkeeping a necessary function?
To manage the accounts receivable and accounts payable of an ambulatory care setting.
What is are Accounts Receivable (A/R)
The amount the patients owe to the medical practice for services rendered.
What are Accounts Payable (A/P)?
The payments that the medical practice owes to other for services that the practice has received.
The patient’s financial record is known as?
The patient account or patient ledger.
What is the permanent record of all financial transactions between the patient and the medical practice?
The patient account or patient ledger.
The provider posts the charges to the account, along with?
All personal and third-party payer payments.
Why the providers use patient account numbers?
To identify the patient in the practice management system.
What does the patient’s account numbers consist of?
Numbers, letters or a combination of both.
If all adult patient has their own account, what does the providers do to identify a minor patient?
A responsible party for each minor patient.
What does all patient accounts with outstanding balances make up?
The accounts receivable.