Coding and Billing: Chapter 21 Financial Practices

Question 1

When should charges be posted to the patient’s account?

Answer 1

During check out

Question 1

What is required for each new patient in a medical office?

Answer 1

Ledger card

Question 2

Checks with stubs attached are called

Answer 2

Vouchers

Question 3

Name a restrictive endorsement

Answer 3

“For Deposit Only” with account number to where it is being deposited to?

Question 4

Name 4 records used in accounting systems

Answer 4

Day Sheet, Patient Ledger Card, Disbursement Journal, Payroll Record

Question 5

What are accounts that are awaiting payment by the office?

Answer 5

Accounts Payable

Question 6

What should you do when an error is made on a check?

Answer 6

Write “VOID” across the face of the check

Question 7

A gap in check numbers that have cleared the account is indicated on a blank statement with what?

Answer 7

An Asterisk

Question 8

Looking for changes in office expenses by watching the disbursements journal is known as:

Answer 8

Tracking

Question 9

Previous balance + Charges 2(payments + adjustments) = current balance

This is the formula used to verify the patient accounts are balanced in which system?

Answer 9

Pegboard system

Question 10

FUTA

Answer 10

Federal Unemployment Tax Act (FUTA)

Question 11

Systematic recording of business transactions

Answer 11

Bookkeeping

Question 12

Write-it-once system is also known as what?

Answer 12

Pegboard system

Question 13

Attempt to find the asset:
capital = $5000
liability = $7000

Answer 13

$12,000

Asset = Capital + Liability

Question 14

Includes patient’s name, address, home and work telephone numbers, name of guarantor, health insurance information, SSN, employer’s name, and special billing instructions

Answer 14

Patient Ledger Card

Question 15

The person to whom the check is written

Answer 15

Payee

Question 16

How often an employee is paid (weekly, biweekly, etc.)

Answer 16

Pay Schedule

Question 17

Daily log, Daily journal and book of original entry are all synonymous with what term?

Answer 17

General journal

Question 18

Which is not a payroll deduction from the employees’ paycheck but rather a sum paid by the employer?

1. Federal income tax
2. FICA taxes
3. Federal unemployment tax
4. State income tax

Answer 18

3. Federal Unemployment Tax

Question 19

Debit adjustment entered when a patient is repaid for an overpayment

Answer 19

Refund

Question 20

Stamps, copy services and other small office or laboratory needs are paid from what type of account?

Answer 20

Petty cash fund

Question 21

NSF stands for:

Answer 21

Non-sufficient Funds

Question 22

The ABA number identifies what?

Answer 22

The individual bank and geographic location of the bank

Question 23

Watching for changes in spending to control expenses

Answer 23

Tracking

Question 24

When is it appropriate to take a third party check?

Answer 24

If it’s written by a health insurance company