Medical Office Procedures: (Chapter
9):Questions with Complete Solutions
Absolute Accuracy Correct Answer-Correctness that is 100 percent;
correctness without error, required for handling financial transactions.
Accounting Correct Answer-A system used to classify, record, and summarize
financial transactions.
Accountable payable (A/P) Correct Answer-The unpaid amounts of money
owed by the practice to creditors and/or suppliers.
Accounts receivable (A/R) Correct Answer-The unpaid amounts of money
owed to the medical practice by patients and third-party payers.
Accrual method Correct Answer-The accounting method whereby income is
recorded as soon as it is earned, whether or not payment is received; expenses
are recorded when they are incurred.
Aging reports Correct Answer-Reports that show the passage of time
between the issuing of a request for payment (invoice) and the receipt of
payment; used to determine late payments and collect them.
Annual Summary Correct Answer-A report providing the monthly charges
and payments for an entire year.
Audit Correct Answer-A review of all financial data by an independent party
outside the practice-the IRS or an accountant-to ensure the accuracy and
completeness of all financial transactions.
, Medical Office Procedures: (Chapter
9):Questions with Complete Solutions
Balance sheet Correct Answer-A report for a stated period indicating the
practice's complete assets, liabilities, and capital.
Bank reconciliation Correct Answer-The process of comparing the balance on
the monthly bank statement with the checkbook balance to determine whether
there is agreement or a difference in the amounts.
Blank endorsement Correct Answer-The presence of only a signature to
enable a check to be cashed or deposited; the most common form of
endorsement.
Bookkeeping Correct Answer-The accurate recording of financial
transactions.
Cash basis Correct Answer-The system of accounting whereby charges for
services are not recorded as income to the practice until payment is received
and expenses are not recorded until they are paid.
Charge/receipt slips Correct Answer-Records of the doctor's services to each
patient and the charges, combined with a tear-off receipt for the patient.
Daily Journal Correct Answer-A record of services rendered by the physician,
daily fees charged, and payments received; also called "general journal" or
"daily earnings record".
9):Questions with Complete Solutions
Absolute Accuracy Correct Answer-Correctness that is 100 percent;
correctness without error, required for handling financial transactions.
Accounting Correct Answer-A system used to classify, record, and summarize
financial transactions.
Accountable payable (A/P) Correct Answer-The unpaid amounts of money
owed by the practice to creditors and/or suppliers.
Accounts receivable (A/R) Correct Answer-The unpaid amounts of money
owed to the medical practice by patients and third-party payers.
Accrual method Correct Answer-The accounting method whereby income is
recorded as soon as it is earned, whether or not payment is received; expenses
are recorded when they are incurred.
Aging reports Correct Answer-Reports that show the passage of time
between the issuing of a request for payment (invoice) and the receipt of
payment; used to determine late payments and collect them.
Annual Summary Correct Answer-A report providing the monthly charges
and payments for an entire year.
Audit Correct Answer-A review of all financial data by an independent party
outside the practice-the IRS or an accountant-to ensure the accuracy and
completeness of all financial transactions.
, Medical Office Procedures: (Chapter
9):Questions with Complete Solutions
Balance sheet Correct Answer-A report for a stated period indicating the
practice's complete assets, liabilities, and capital.
Bank reconciliation Correct Answer-The process of comparing the balance on
the monthly bank statement with the checkbook balance to determine whether
there is agreement or a difference in the amounts.
Blank endorsement Correct Answer-The presence of only a signature to
enable a check to be cashed or deposited; the most common form of
endorsement.
Bookkeeping Correct Answer-The accurate recording of financial
transactions.
Cash basis Correct Answer-The system of accounting whereby charges for
services are not recorded as income to the practice until payment is received
and expenses are not recorded until they are paid.
Charge/receipt slips Correct Answer-Records of the doctor's services to each
patient and the charges, combined with a tear-off receipt for the patient.
Daily Journal Correct Answer-A record of services rendered by the physician,
daily fees charged, and payments received; also called "general journal" or
"daily earnings record".
