Which of the following is a banking machine operated by inserting a debit, credit, or bank card and entering a personal identification number (PIN) code?
Automated teller machine
Because currency and coin are instantly expendable, care must be taken to keep it secured at all times in the medical office. Which of the following would be the best example of security measures?
Balance the cash receipts at regular intervals throughout the day and keep locked in the office at the close of the day.
A check paid directly from a checking account through the Internet is a(n):
electronic check
When preparing a deposit slip you should:
stack the bills in order from highest to lowest denomination
The record of an account sent to the account holder, usually on a monthly basis, showing the beginning balance, all deposits made, all checks drawn, all bank service charges, and interest earned, and the closing balance is called:
a bank statement
An account from which you can make a debit card transaction is called a ____ account.
checking
The person to whom the check is written is known as the _____.
Payee
A certified check is:
a check that has been stamped by the bank to show that the bank is holding the amount in reservice until the check is cashed.
Which of the following describes the nine-digit routing number security feature of a check?
Magnetic ink character recognition numbers
When preparing a deposit slip, you should:
prepare separate deposit slips if there are more checks than can fit on each form.
Which of the following best describes the action of a stop payment?
Should be used if a check is discovered missing
What is the term used for the cash we use in our society?
Currency
When reconciling a bank statement and you find your balance is different than that of the bank, which is a common tip to see if there is a transposition error?
Subtract the balance you have from the balance the bank has; then divide that number by 9
What is standard practice in banking procedures?
Take security measures to protect the identity of patients and potential HIPAA violations
Which of the following is a standard precaution for accepting checks?
Stamp the check with the deposit endorsement upon receipt.
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
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?
Post dated Check
Money (cash or checks) put into an account, increasing the account balance, is known as a:
deposit
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):
endorsment
When should a blank endorsement be used?
When the check is to be cashed
The check register is kept by the:
The person who writes a 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
Which fund is a small amount of stored cash, usually ranging from $25 to $100, that a medical facility keeps for when small payments are required?
Petty cash fund
Which is a document that includes itemization of goods and purchases or services provided together with the charges and terms of the agreement?
Invoice
This information specifies how a vendor would like to receive the money from the medical office.
Payment terms
Who usually completes the double-entry accounting system in medical offices?
Accountant
Which of the following is prepared at the end of an accounting period, typically monthly, quarterly, and annually?
Trail balance
Which of the following is found on an income statement?
Overhead expenses
How would you know if all items ordered have been received?
Compare the packing list with the invoice/statement.
This type of accounting is the study and analysis of financial data as it applies to operational issues within a company.
Managerial accounting
Bookkeeping is the process of _____.
identifying, recording, and communicating economic events
What is another term for net worth?
Owner's equity
This 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.
Net collection ratio
This demonstrates the profit and expenses for a given month and includes year-to-date information for a given year.
Income statement
Which of the following is a component of an invoice?
The name of the company or client contracted with the company or vendor
Which of the following is an example of a write-off?
A professional courtesy discount
Why would you conduct a cost-benefit analysis?
To evaluate the program by demonstrating whether the benefits received outweigh the program's costs
The common set of standards that are generally accepted and universally practiced in accounting is known as what?
Generally accepted accounting principles (GAAP)
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.
A(n) notice of ______ 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.
A(n) __________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