BOOKKEEPING DEFINITIONS EXAM
QUESTIONS WITH CORRECT ANSWERS
accounts payable - ANSWER-The management of debit incurred and not yet paid;
money the provider owes to others.
accounts receivable - ANSWER-Money that is expected but has not yet been received
adjustments - ANSWER-Credits posted to the patient account record when the
provider's fee exceeds the amount allowed stated on the EOB
bookkeeping - ANSWER-The recording of financial transactions in the patient account
records
collections - ANSWER-The process of using all legal resources available to collect
payment for past due patient account balances
credit - ANSWER-A bookkeeping entry that increases accounts receivable; money
owed to the provider; money counted as received by the provider.
guarantor - ANSWER-The individual who subscribes to an insurance plan and accepts
financial responsibility for the patient; responsibility for payment
invoice - ANSWER-A list of products or services provided to the healthcare facility for
payment; billing statement that lists the amount owed for goods or services provided
medically indigent - ANSWER-Patients that are in need of medical care, yet cannot pay
non-sufficient funds check (NSF) - ANSWER-When a patient pays a check without
having sufficient funds in the bank to cover the payment so it is returned to the provider
unpaid
balance - ANSWER-Amount available in an account for withdrawl or use; total of the
charges and credits
provider's fee schedule - ANSWER-Fees established by the provider for services
rendered
liability - ANSWER-the state of being responsible for something, especially by law
asset - ANSWER-Someone or something regarded by the company as having value
debit - ANSWER-money owed to the patient: paper says; money listed as owed to the
provider
QUESTIONS WITH CORRECT ANSWERS
accounts payable - ANSWER-The management of debit incurred and not yet paid;
money the provider owes to others.
accounts receivable - ANSWER-Money that is expected but has not yet been received
adjustments - ANSWER-Credits posted to the patient account record when the
provider's fee exceeds the amount allowed stated on the EOB
bookkeeping - ANSWER-The recording of financial transactions in the patient account
records
collections - ANSWER-The process of using all legal resources available to collect
payment for past due patient account balances
credit - ANSWER-A bookkeeping entry that increases accounts receivable; money
owed to the provider; money counted as received by the provider.
guarantor - ANSWER-The individual who subscribes to an insurance plan and accepts
financial responsibility for the patient; responsibility for payment
invoice - ANSWER-A list of products or services provided to the healthcare facility for
payment; billing statement that lists the amount owed for goods or services provided
medically indigent - ANSWER-Patients that are in need of medical care, yet cannot pay
non-sufficient funds check (NSF) - ANSWER-When a patient pays a check without
having sufficient funds in the bank to cover the payment so it is returned to the provider
unpaid
balance - ANSWER-Amount available in an account for withdrawl or use; total of the
charges and credits
provider's fee schedule - ANSWER-Fees established by the provider for services
rendered
liability - ANSWER-the state of being responsible for something, especially by law
asset - ANSWER-Someone or something regarded by the company as having value
debit - ANSWER-money owed to the patient: paper says; money listed as owed to the
provider
