Financial Practices Review Flashcards
accounts
records of financial transactions and the resulting balances during a fiscal period, usually January 1st through December 31st
accounts payable
the money the practice owes (rent, utilities, medical supplies, payroll)
accounts receivable
the money owed to the practice, such as patient bills
accounts receivable ledger
listing by individual patient name of all monies owed to the practice
adjustments
changes to the amount of money owed for reasons other than additional services or payments (fee discounts, refunds)
age of accounts receivable (aging analysis)
the period between when the service is rendered and the bill is paid, usually in 30 day intervals; computerized financial programs will process statements calculating the amount of money that is owed on the account for 30, 60, 90, or 120 days since the date of service
asset
anything of value owned by an individual or business
balancing
ensuring accuracy in totals by comparing them with preestablished criteria; in accounts receivable, the total of balances from individual patient statements must equal the total of accounts receivable recorded in the journal
blank endorsement
only the signature of the payee appears on the back of the check
credit
value added to an account, usually in the form of payment for a debt owed to that party
currency
officially paper money of a country
day sheet
a daily record of the services rendered, charges made, and payments received; may be a manual or computerized system
debit
value subtracted from the companies’ assests
endorsement
signing the back of a check as the payee for the amount represented on the front of the check
entry
the recording of each transaction on the appropriate forms or components
gross income
the total amount of income for the medical practice before deductions
income
the amount of money a medical practice earns
invoice
a bill sent from a vendor stating what was purchased and what the charges are
journal
a chronologic collection of day sheets with running totals for a specific period
liability
obligation; debt of the individual or business
line of credit
a financial agreement between a bank or financial institution and a borrower establishing the maximum amount of money the borrower can obtain through a loan
monthly trial balance
a list and total of all the debit and credit accounts for the medical practice
net income
the amount of income for the medical practice after deductions
patient ledger
a patient statement that is an individual form of each patient’s accounts receivable activities; often used as the patient bill
payee
the person to whom the check is written; the person receiving the money
payer
the person or organization giving the money to the payee
pegboard system
a system of layered day sheets, patient ledgers, charge slips, and receipts; allows all entries to be made with one transaction
petty cash
a small sum of money (usually less than 200$), separate from the cash drawer, used for incidental expenses)
posting
transferring information from the journal (day sheet) to the accounts receivable ledger or to the individual patient’s ledgers
purchase order
a document sent to a vendor via mail, fax, or the internet to purchase supplies and equipment for the medical office
reconciliation
the process of verifying that the information on the bank statement agrees with the information in the check register
Regulation Z
the Truth in Lending Act as recorded in the Federal Register
restrictive endorsement
signature of the payee with instructions (for deposit only)
superbill (encounter form)
a provided form that has all the necessary information to file an insurance claim related to that office
Truth in Lending Act (TILA)
established in 1986, protects the consumer by requiring the informed use of consumer credit with all costs calculated and all terms disclosed
