Chpt 12

Question 1

Auditors

Question 2

Budget

Answer 2

A list of planned expenses and revenues

Question 3

Charitable contributions

Question 4

Corcular E

Question 5

Deductions

Answer 5

Number of allowances to be withheld from an employee’s wages

Question 6

Endorsement stamp

Question 7

Fair Labor Standards Act (FLSA)

Answer 7

Law passed by the US Congress in 1938 to address employment issues such as the federal minimum wage

Question 8

Federal Insurance Contributions Act (FICA)

Answer 8

Law that addresses social security withholding taxes

Question 9

Federal Unemployment Tax Act (FUTA)

Answer 9

Program that pays employees who have lost their jobs

Question 10

Financial accounting

Answer 10

The process of providing information to stock holders or creditors

Question 11

Fixed costs

Answer 11

Costs that remain the same no matter how many services are used or produced

Question 12

Gross pay

Answer 12

Amount earned before taxes or deductions are subtracted

Question 13

Managerial accounting
Cost accounting

Answer 13

The function of collecting and applying financial information within an organization in order to make sound business decisions

Question 14

Net pay

Answer 14

Amount of wages remaining after deductions and taxes have been subtracted

Question 15

Outsource

Answer 15

Ti send outside a business to another business for completion

Question 16

Overtime

Answer 16

Wages paid beyond 40 hours in a workweek, usually at a rate that is 1.5 times the normal rate

Question 17

Payroll

Answer 17

The process of calculating the amounts employees receive for their work

Question 18

Payroll taxes

Answer 18

Monies withheld from wages for federal income, Social Security and Medicare obligations

Question 19

Personnel file

Question 20

Petty cash

Answer 20

A small amount of money kept in the medical office to pay for unexpected items
Not generally invoiced but must have receipts

Question 21

Products

Answer 21

Supplies that the physician prescribes to the patient, such as a splint or crutches

Question 22

Quarterly payroll reports

Answer 22

Documents that specify the taxes withheld from wages quarterly

Question 23

Security envelope

Question 24

Services

Answer 24

Things that are provided to the patient in the form of an activity, such as an examination or a surgical procedure

Question 25

Social Security Act

Answer 25

Law passed by the US Congress in 1935 to provide workers and their families with financial security after retirement

Question 26

Time clock

Question 27

Unemployment insurance

Question 28

Variable costs

Answer 28

Costs that vary with the number of services or products produced

Question 29

W-2 form

Question 30

W-4 form

Question 31

Wages

Answer 31

Monies paid for work performed

Question 32

Withholding allowances

Question 33

Worker’s’ compensation

Question 34

Stay abreast of reimbursement amounts provided by carriers for products in order to determine if the product is creating a profit or loss

Question 35

Tracking services

Answer 35

Track the number of patients each physician sees on a given day to determine physician salaries or number of staff for a particular physician

Question 36

Create a projected amount of income for the next year.
Then create a budget of expenses

Question 37

History of payroll taxes

Answer 37

16th amendment-1913-congress can impose federal income taxes
1935-Social security act-provide financial security after retirement
1938-Fair Labor Standards Act (FLSA-fed minimum wage, overtime
1943-law required businesses to collect and submit employee taxes

Question 38

2009 federal minimum wage

Answer 38

$7.25