Which type of bank account involves the use of a passbook?
Savings account
Which type of bank account allows checks to be written for a larger amount than is currently in the account?
Overdraft checking account
A three-dimensional graphic foil embedded in the check to provide additional protection against duplication is known as a:
foil hologram.
What type of check will be marked void if written over a certain amount?
Limited check
Where does the chronologic check number appear on a check?
Upper right corner
Magnetic Ink Character Recognition (MICR) is numbers and symbols representing security features on a check. Which of the following is one of the number/security features?
A warning band in the border of the check indicating the document contains security features
What is the term for a check made out with a future date?
Postdated check
Money (cash or checks) put into an account, increasing the account balance, is known as a:
deposit.
Which of the following type of check refers to something that can be transferred or exchanged?
. negotiable
A transfer of title on the check to the bank in exchange for the amount of money on the face of the check is a(n):
endorsement
When should a blank endorsement be used?
When the check is to be cashed
The check register is kept by the:
person who writes the check.
If you must send cash or currency by mail, you should send it via which method?
Registered mail
How often are bank statements typically sent to an account holder?
monthly
What is used to endorse checks when they are received?
Restrictive endorsement
When a bank statement is received, you should verify that the amounts on the bank statement are consistent or compatible with the amounts contained in the office's check register. This process of confirming the amounts is referred to as:
reconciling.
When a check does not appear on your bank statement because the payee has not yet cashed the check it is called a(n):
outstanding check.
Third-party
a type of check made by made out to the patient by another unknown person
Register
a record showing the check number, person to whom the check is paid, amount of the check, date and balance
Void
it disables the check so it cannot be used
Reconciling.
process to bring check book and bank statement into agreement
negotiable
the process of drawing against deposited funds to pay a specified amount to a person or business upon demand of the check
authorization
card obtained from the bank that must be completed to allow someone other than the recorded owner of the account to execute checks
agent
One who acts or has the power to act for another.
endorser
signature on the back of the check of the payee
Payee
A person to whom money is paid
Payer
the person who signs the check or the corporation that pays it
Accounts payable refers to the:
total amount of money the practice owes to vendors.
Which of these is a date that commonly appears on an invoice?
The date by which payment should be made by the medical office.
Managerial accounting is also known as:
cost accounting
is the obligation or the promise that a medical office owes to its creditors for buying goods or services.
Accounts Payable
If the assets of a medical practice add up to $20,000, and its liabilities add up to $5,000, what is the net worth of the medical practice?
. $15,000
If the current A/R balance is $100,000, and the average monthly gross production is $20,000, what is the A/R ratio?
5.0
The _______ is one of the two most common financial statements?
income statement
The steps in calculating a cost benefit analysis include identifying costs, identifying benefits, and:
comparing costs and benefits.
An _______ is a document that includes itemization of goods and purchases or services provided together with the charges and terms of the agreement.
invoice
is/are the acquired material, property, or labor in exchange for money.
Expenditures
The net collection ratio is calculated by:
dividing the total payments for a specific period of time by the total charges, with the write-offs deducted from the total charges.
After write-offs are taken, net collection rates should be:
between 90 and 100 percent.
If the total expenses for a medical practice add up to $150,000, and the total number of procedures adds up to 300, what is the cost ratio?
500
If the items listed on a packing slip do not match the items in the shipment, what may happen if the medical office pays the bill in full?
The vendor may object to sending the missing items
An _______ demonstrates the profit and expenses for a given month and includes year-to-date information for a given year.
income statement
The part of an invoice that states "Payment should be made within 30 days by check or money transfer, through online banking, from the date of this invoice" is known as the:
payment terms
Balance Sheet
a statement of financial position, reveals a company's assets, liabilities, and owner's equity
Net worth
equity
trial balance
prepared at the end of an accounting period, typically monthly, quarterly, and annually
income statement
the most commonly generated year-end report
Expenditure
acquired material, property, and labor in exchange for money
Depleted
consumed, emptied, exhausted
Invoice
a document that includes itemization of goods and purchases or services provided together with the charges and terms of the agreement
Equity
Net worth
Net collection ratio
This is calculated by taking the total payments for a specific period of time divided by the total charges, with the write-offs deducted from the total charges
Collection Ratio
formula that determines how efficiently and timely an office is collecting payments for services rendered by the physicians
Gross collection ratio
Includes the total payments received by a practice for a specific period of time, not including any write-offs
Cost ratio
formula that demonstrates a cost of a specific procedure or service
Accounting
involves the entire process of identifying, recording, and communicating economic events
Voucher
a document that serves as proof that terms of a transaction have been met
accounting formula
assets - liabilities = net worth
Assets
the money and items of value in a business