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MAP 150- Administrative Medical Office > Chapter 31- Accounts, Collections, Banking > Flashcards

Chapter 31- Accounts, Collections, Banking Flashcards

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USMLE® Step 1 flashcards
1
Q

EAQ:
1. Which term represents the person who is responsible for a bill?

A

Guarantor

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2
Q

Grandfathered:

A

someone who has an established relationship prior to a new change in the way of doing something.

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3
Q
  1. How is a discount applied on a pts ledger?
A

Adjustment

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4
Q

Accounting:

A

Systematic recording and reporting of financial transactions.

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5
Q

Reconciling:

A

making sure that two financial records agree, such as a bank statement and bank balance.

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6
Q
  1. Where will the charges and payments be recorded for each patient?
A

Ledger

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7
Q
  1. Which action will a MA take in the case of receiving a patients check back marked, “insufficient funds (NSF)?
A

Contact the patient and alert him or her to the problem

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8
Q
  1. Which person is named on a check as the recipient of the amount shown?
A

Payee

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9
Q

Drawer:

A

who wrote the check

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10
Q

Holder:

A

Presents the check for payment

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11
Q
  1. Which statement made by a MA about the petty cash account indicated a need for furthering teaching?
A

” It is used as a small personal loan for employee’s lunch expenses.

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12
Q
  1. Which action indicates that the debt collector is following the Fair Debt Collection Practices?
A

Calling the debtor only after 8:00 am and before 8:00 pm.

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13
Q
  1. Which scenario is implied when a check is returned with an “NSF” stamp?
A

The patient who has written the check has insufficient funds.

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14
Q

Checks or drafts that has not been paid by the drawee’s bank:

A

Uncollected funds

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15
Q

If the check of draft returns with “stop payment”:

A

this implies that the check belongs to a third party.
Also, the person who wrote the check revoked his or her authorization.

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16
Q
  1. Which term indicates the name of a check written on an account without adequate funds to cover it?
A

Overdraft

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17
Q

Overdraft:

A

Insufficient funds in the bank account of the payee to pay the check.

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18
Q

Aged out bill:

A

refers to a scenario in which a pt has been given ample notice to pay a bill, did not, and now the bill has aged out and been sent to collections.

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19
Q

Claim message check:

A

refer to those messages that are attached to the billing envelope to encourage the patient to clear the debt.

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20
Q
  1. How will checks be endorsed for deposit?
A

Restrictive

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21
Q

Blank:

A

simplest form and common.
- on personal checks but will be used only when the check is to be cashed or deposited immediately.

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22
Q
  1. Which term refers to the recording of business and accounting transactions?
A

Bookkeeping

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23
Q

Pegboard:

A

is a manual method for conducting accounting procedures.

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24
Q

Which term is used to refer to the cash amounts that are paid out?

A

Disbursements

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25
Q

Payables:

A

are the amounts that are owed to others but that are not yet paid.

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26
Q

Receivables:

A

payments that are yet to be received.

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27
Q
  1. Which person is responsible for preparing detailed financial reports, financial planning and preparing tax returns?
A

A professional accountant

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28
Q
  1. Which time frame is appropriate to wait before sending a patient the final demand letter and turning the charge over to a collection agency?
A

120 days old

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29
Q
  1. Which information is provided to a pt when credit is extended to cover the cost of a procedure?
A

Truth In Lending Account

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30
Q
  1. Which is the term used to describe the healthcare provider who is receiving a payment from a pt?
A

Payee

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31
Q
  1. Which document is included with a delivery of merchandise provided by the vendor?
A

Invoice

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32
Q
  1. Which is a name for a bill sent to a pt on a monthly basis?
A

Statement

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33
Q
  1. Which type of endorsement typically uses the phrase “ without recourse” written on a check?
A

Qualified

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34
Q
  1. Which definition describes an endorsement?
A

The signature and other writing on the back of a check.

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35
Q
  1. Which is the purpose of checking information on a personal check provided by a patient?
A

The information helps prevent the acceptance of fraudulent checks.

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36
Q
  1. In which situation will an office need to receive more money than the initial charge from a patient?
A

A nonsufficient funds check with charges added for a nonsufficient funds (NSF) fee.

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37
Q
  1. Which type of account can earn higher interest on money deposited at the lowest prevailing rate?
A

Savings account

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38
Q
  1. Which scenario identifies a blank endorsement?
A

The payee signs only his or her name on the back of the check.

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39
Q
  1. Which type of check contains a detachable form indicating the reason for payment?
A

Voucher’s check

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40
Q
  1. Which check can a medical assistant accept?
A

Checks from an insurance carrier of a pt.

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41
Q
  1. Which term refers to entering charges on a ledger?
A

Posting

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42
Q
  1. Which amount will the MA request from a pt when a check has been returned for overdraft?
A

Hospital bill and bank fee

43
Q
  1. Which term refers to money that is owed to a facility and that has not yet been received?
A

Accounts Receivable,

44
Q
  1. Which details will the MA request of a first time pt to maintain their financial account?
A

Insurance identification
Name and address of the guarantor.
Home and business telephone numbers

45
Q
  1. Which statement describes successfully reconciling a bank statement?
A

The bank records and the medical office records are in agreement.

46
Q
  1. Which statement is accurate regarding a cashier’s check ?
A

It is a check drawn on the bank instead of an individual account.

47
Q
  1. Which percentage reflects the portion of the patient payments collected that a collection agency retains?
A

40% to 60%

48
Q
  1. Which is an advantage of using small claims court to collect delinquent accounts?
A

Inexpensive

49
Q
  1. Which definition identifies the pegboard system?
A

A manual accounting system in a medical office.

50
Q
  1. When will a MA use an online banking service?
A

for bill payment

51
Q
  1. Which part of a check’s nine-digit routing transit number (RTN) identifies the individual bank from which the check was drawn?
A

last six digits

52
Q
  1. Which ledger card column is used to enter the payments received on an account?
A

Credit

53
Q
  1. Where will a MA enter the write offs and disallowances in a ledger account?
A

Adjustment column

54
Q
  1. Which pieces of information will be found in a collection report when received at the collection agency?
A

Name of the debtor
Address of the debtor
Full amount of the debt

55
Q
  1. Which form is attached to a chart and records the charges and diagnosis?
A

Encounter Form

56
Q
  1. Which is the purpose of the Fair Debt Collection Practices Act?
A

Prevents Unfair Collection Measures

57
Q
  1. Which entity do the first two digits in a routing transit number? (RTN)
A

The federal reserve district where the bank is located.

58
Q
  1. Which type of endorsement is preferred for checks in a medical office?
A

Restrictive

59
Q
  1. Which type of endorsement is used only when the check is to be cashed or deposited immediately and has the payee sign just his or her name?
A

Blank endorsement

60
Q
  1. How will the MA record a reduced provider’s fee?
A

Write it off as an adjustment in the debt column.

61
Q
  1. Which type of balance occurs when an account is overpaid?
A

Credit

62
Q
  1. Which action will the MA take when a pt falls to respond to a final letter?
A

Use a collection agency.

63
Q
  1. Which term refers to the person presenting a check for payment at the bank?
A

Holder

64
Q
  1. Which legislation applies to a written contract regarding accepting monthly installments for payment?
A

Truth in lending act

65
Q

Skip:

A

refers to an account for which no billing information is available.

66
Q

OCA-
It is considered an offer of credit when the healthcare facility allows the patient to make more than _______ payments on his or her balance.

A

Four

67
Q

Who is legally responsible for the entire medical bill?

A

Guarantor

68
Q

____________ is the management of debt incurred and not yet paid.

A

Accounts payable

69
Q

What type of endorsement usually includes the words “without recourse?”

A

Qualified endorsement

70
Q

In March 1978, what Act went into effect in order to eliminate abusive, deceptive, and unfair debt collection practices?

A

Fair Debt Collection Act

71
Q

A document sent by the insurance company to the provider and the patient explaining the allowed charge amount, the amount reimbursed for services, and the patient’s financial responsibilities is called a(n):

A

EOB

72
Q

The amount someone is paid after taxes and other deductions have been subtracted is called:

A

Net Pay

73
Q

A _________ file is a chronologic file used as a reminder that something must be dealt with on a certain date.

A

Tickler

74
Q

How often are transactions for professional services posted to the patient’s ledger?

A

Daily

75
Q

What document must be provided to the patient if the healthcare facility and patient agree that payment will be made in more than four installments?

A

Truth in Lending Statement

76
Q

Lesson:
1. Why might a provider use a manual pegboard system?

A
  • The pegboard system keeps control over cash, collections, and receivables.
  • The pegboard system ensures that every cent is accounted for and properly entered.
  • The pegboard system may be preferred by providers who have been in practice for a long time compared to newer management software.
  • The pegboard system provides a record of every change, every payment, and a daily recap of earnings.
77
Q
  1. When does a credit balance occur?
A

A credit balance occurs when a patient has paid in advance or when an overpayment or duplicate payment has been made.

78
Q
  1. Which federal regulation applies when obtaining credit information from a pt?
A

Health Insurance Portability and Accountability (HIPAA)

79
Q
  1. What should the MA consider when discussing payment with a client?
A

Using tact and good judgment in billing and collecting.
Giving each pt individual attention and personal consideration.
Being courteous and show sincere desire to help patients with financial problems.

80
Q
  1. What resources are available for the medically indigent?
A

Agencies that cover the cost of medications.
Agencies that cover the cost of rehabilitation.
Agencies that cover the cost of special therapies.
Agencies that provide financial assistance for hospitalization.

81
Q
  1. What are the ramifications of fee adjustment?
A

It may be misinterpreted as an admission of guilt for an error.
Patients may begin to doubt the competency of the provider.
Patients begin to expect fees to be reduced in all circumstance.

82
Q
  1. What does the inclusion of “without prejudice” in the adjustments of fees to the pt account protect?
A

The right to collect the original sum if patient should refuse to pay the lower fee.

83
Q
  1. How is the total amount due recorded in a fee adjustment?
A

The original fee should be recorded.

84
Q
  1. What methods can an MA use to collect payment on a pt account?
A
  • Perform skip- tracing
  • Make telephone calls
  • Send collection letters
  • Personal finance interviews
85
Q
  1. What actions should an MA take if a pt becomes hostile or angry during a collection phone call?
A

Gently hang up the phone
Always end the phone call by saying thank you and goodbye,
Give the patient the option of calling back when ready to discuss payment arrangements.

86
Q
  1. What circumstances might call for provider consultation on collection of patient accounts?
A

If the pt has no credit history
If questions arise about special collection problems
If the account is to be assigned to a collection agency.
If the Physican has seen the pt in the hospital or at home

87
Q
  1. What actions should be avoided when attempting to collect a debt from a patient?
A

Call between the hours of 9 pm and 8 am
Make repeated phone calls on the same day.
Call the debtor’s place of work if the employer prohibits personal phone calls.

88
Q
  1. What actions should be taken with a pt account once it has been sent to a collection agency?
A

Report a payment made directly to the office.
Close the patient account for activity.
Refer the patient to the collection agency if the pt inquiries about the account.
Call the agency with any information that will be of value in collecting the account.

89
Q
  1. What is the typical percentage a provider obtains when payment is collected by a collection agency?
A

40%- 60%

90
Q
  1. Which suggestions are appropriate for tracing skips?
A

Checking the debtor’s place of employment
Calling the telepone number listed in the pt account record.
Making calls to reference listed on the pts office registration..
Contacting neighbors and landlords to secure information regarding pts whereabouts.

91
Q
  1. What must be done if the office is notified that a pt has declared bankruptcy?
A

Cease sending statements or attempting to collect on the account.

92
Q

Lesson #2:
Which are examples for accounting management software?

A

Quicken
Quick books

93
Q

Which are examples of customer- oriented banking?

A

Mobile banking
Online services
Interactive voice response

94
Q

What type of account would be used for funds that are not needed for frequent withdraws?

A

Savings

95
Q

How does a practice decide what type of bank to use?

A

Needs of the practice

96
Q

What are advantages of using a debit card?

A

Offers limited liability.
Provides a summary of receipts.
Promotes quickness of transactions
Backs up automatic transaction payment.
Ensures quick calculation of expenditures.

97
Q

Which precautions should a MA take when accepting payment with a debit or credit card??

A

Ask for identification.

98
Q

What should a MA do if a credit card declines, and the payer become angry?

A

Refer the payer to the office manager.

99
Q

What is required for point-of-sale use of a debit card?

A

Personal identification number

100
Q

What precautions should a MA use when accepting a check?

A

Inspect the check for corrections.
Ask for state issued identification.
Inspect the check for correctness of entries.
Refuse to accept a check written for more than the amount required as a pt request to get cash back.

101
Q

How does an electonic check work to prevent fraud?

A

The electronic check verifies the account.

102
Q

What should a MA do if a payer writes, “ Payment in full” on a check, and if cannot be confirmed that the check is for payment in full?

A

Refuse to accept the check.

103
Q

What is the name of a check that is returned to the practice dye to lack of available funds?

A

Non-Sufficient Funds (NSF) Check

MAP 150- Administrative Medical Office (16 decks)

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