M&A FINAL EXAM QUESTIONS AND
CORRECT ANSWERS.
What is the term used to describe money that is owed to the medical office?
Accounts receivable
What term is used to describe the bills that the practice has for office rent, equipment
rental, and salaries?
Accounts payable
When is income calculated in the cash basis of accounting?
At the time patient's bill is paid
What is the function of a daily journal (day sheet) in a bookkeeping system?
To keep a chronological record of transactions
What is the major disadvantage of the single entry in bookkeeping system?
There is no method to crosscheck for accuracy of recording and calculations
What type of record is used to keep track of all the charges and payments for each
individual patient?
Patient ledger
In which type of bookkeeping system is every transaction posted into two different records,
once as a credit and one as a debit?
Double-entry bookkeeping system
At what interval are charges and payments usually posted to patient accounts?
Daily
In bookkeeping, what is an example of a credit?
A patient is given a discount for paying in full at the time of the visit
, Which equation is the correct accounting principle?
Assets = Liabilities + Owner's Equity
What is another name for the itemized charge slip commonly used in the medical office?
Superbill
Who is responsible to determine the type or level of service provided to patient?
Physician or other provider
Which codes are necessary in order to submit insurance claims?
Both diagnosis and procedure codes
How does the medical assistant know what the usual charge is for a procedure?
The charge appears from computer memory when the procedure is selected
Before leaving the office, the patient gives the medical assistant $10 on account. What type
of entry does the medical assistant make to the computer billing program?
Payment
Which of the following is an example of a debit adjustment (increases the amount the
patient owes)?
Check returned by the bank for Not Sufficient Funds
Which of the following is a way that patients make payments on their outstanding
accounts?
Online payments made by credit or debit card through the practice website
What precaution should be taken when accepting a credit card for payment by a patient?
The name on the card should be the name of the individual presenting the card
What is an advantage of a computer billing system related to posting payments?
The record of the payment appears in types of reports (ledger, day sheet, etc.)
CORRECT ANSWERS.
What is the term used to describe money that is owed to the medical office?
Accounts receivable
What term is used to describe the bills that the practice has for office rent, equipment
rental, and salaries?
Accounts payable
When is income calculated in the cash basis of accounting?
At the time patient's bill is paid
What is the function of a daily journal (day sheet) in a bookkeeping system?
To keep a chronological record of transactions
What is the major disadvantage of the single entry in bookkeeping system?
There is no method to crosscheck for accuracy of recording and calculations
What type of record is used to keep track of all the charges and payments for each
individual patient?
Patient ledger
In which type of bookkeeping system is every transaction posted into two different records,
once as a credit and one as a debit?
Double-entry bookkeeping system
At what interval are charges and payments usually posted to patient accounts?
Daily
In bookkeeping, what is an example of a credit?
A patient is given a discount for paying in full at the time of the visit
, Which equation is the correct accounting principle?
Assets = Liabilities + Owner's Equity
What is another name for the itemized charge slip commonly used in the medical office?
Superbill
Who is responsible to determine the type or level of service provided to patient?
Physician or other provider
Which codes are necessary in order to submit insurance claims?
Both diagnosis and procedure codes
How does the medical assistant know what the usual charge is for a procedure?
The charge appears from computer memory when the procedure is selected
Before leaving the office, the patient gives the medical assistant $10 on account. What type
of entry does the medical assistant make to the computer billing program?
Payment
Which of the following is an example of a debit adjustment (increases the amount the
patient owes)?
Check returned by the bank for Not Sufficient Funds
Which of the following is a way that patients make payments on their outstanding
accounts?
Online payments made by credit or debit card through the practice website
What precaution should be taken when accepting a credit card for payment by a patient?
The name on the card should be the name of the individual presenting the card
What is an advantage of a computer billing system related to posting payments?
The record of the payment appears in types of reports (ledger, day sheet, etc.)
