front 1 Which type of bank account involves the use of a passbook? | back 1 Savings account |
front 2 Which type of bank account allows checks to be written for a larger amount than is currently in the account? | back 2 Overdraft checking account |
front 3 A three-dimensional graphic foil embedded in the check to provide additional protection against duplication is known as a: | back 3 foil hologram. |
front 4 What type of check will be marked void if written over a certain amount? | back 4 Limited check |
front 5 Where does the chronologic check number appear on a check? | back 5 Upper right corner |
front 6 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? | back 6 A warning band in the border of the check indicating the document contains security features |
front 7 What is the term for a check made out with a future date? | back 7 Postdated check |
front 8 Money (cash or checks) put into an account, increasing the account balance, is known as a: | back 8 deposit. |
front 9 Which of the following type of check refers to something that can be transferred or exchanged? | back 9 . negotiable |
front 10 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): | back 10 endorsement |
front 11 When should a blank endorsement be used? | back 11 When the check is to be cashed |
front 12 The check register is kept by the: | back 12 person who writes the check. |
front 13 If you must send cash or currency by mail, you should send it via which method? | back 13 Registered mail |
front 14 How often are bank statements typically sent to an account holder? | back 14 monthly |
front 15 What is used to endorse checks when they are received? | back 15 Restrictive endorsement |
front 16 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: | back 16 reconciling. |
front 17 When a check does not appear on your bank statement because the payee has not yet cashed the check it is called a(n): | back 17 outstanding check. |
front 18 Third-party | back 18 a type of check made by made out to the patient by another unknown person |
front 19 Register | back 19 a record showing the check number, person to whom the check is paid, amount of the check, date and balance |
front 20 Void | back 20 it disables the check so it cannot be used |
front 21 Reconciling. | back 21 process to bring check book and bank statement into agreement |
front 22 negotiable | back 22 the process of drawing against deposited funds to pay a specified amount to a person or business upon demand of the check |
front 23 authorization | back 23 card obtained from the bank that must be completed to allow someone other than the recorded owner of the account to execute checks |
front 24 agent | back 24 One who acts or has the power to act for another. |
front 25 endorser | back 25 signature on the back of the check of the payee |
front 26 Payee | back 26 A person to whom money is paid |
front 27 Payer | back 27 the person who signs the check or the corporation that pays it |
front 28 Accounts payable refers to the: | back 28 total amount of money the practice owes to vendors. |
front 29 Which of these is a date that commonly appears on an invoice? | back 29 The date by which payment should be made by the medical office. |
front 30 Managerial accounting is also known as: | back 30 cost accounting |
front 31 is the obligation or the promise that a medical office owes to its creditors for buying goods or services. | back 31 Accounts Payable |
front 32 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? | back 32 . $15,000 |
front 33 If the current A/R balance is $100,000, and the average monthly gross production is $20,000, what is the A/R ratio? | back 33 5.0 |
front 34 The _______ is one of the two most common financial statements? | back 34 income statement |
front 35 The steps in calculating a cost benefit analysis include identifying costs, identifying benefits, and: | back 35 comparing costs and benefits. |
front 36 An _______ is a document that includes itemization of goods and purchases or services provided together with the charges and terms of the agreement. | back 36 invoice |
front 37 is/are the acquired material, property, or labor in exchange for money. | back 37 Expenditures |
front 38 The net collection ratio is calculated by: | back 38 dividing the total payments for a specific period of time by the total charges, with the write-offs deducted from the total charges. |
front 39 After write-offs are taken, net collection rates should be: | back 39 between 90 and 100 percent. |
front 40 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? | back 40 500 |
front 41 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? | back 41 The vendor may object to sending the missing items |
front 42 An _______ demonstrates the profit and expenses for a given month and includes year-to-date information for a given year. | back 42 income statement |
front 43 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: | back 43 payment terms |
front 44 Balance Sheet | back 44 a statement of financial position, reveals a company's assets, liabilities, and owner's equity |
front 45 Net worth | back 45 equity |
front 46 trial balance | back 46 prepared at the end of an accounting period, typically monthly, quarterly, and annually |
front 47 income statement | back 47 the most commonly generated year-end report |
front 48 Expenditure | back 48 acquired material, property, and labor in exchange for money |
front 49 Depleted | back 49 consumed, emptied, exhausted |
front 50 Invoice | back 50 a document that includes itemization of goods and purchases or services provided together with the charges and terms of the agreement |
front 51 Equity | back 51 Net worth |
front 52 Net collection ratio | back 52 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 |
front 53 Collection Ratio | back 53 formula that determines how efficiently and timely an office is collecting payments for services rendered by the physicians |
front 54 Gross collection ratio | back 54 Includes the total payments received by a practice for a specific period of time, not including any write-offs |
front 55 Cost ratio | back 55 formula that demonstrates a cost of a specific procedure or service |
front 56 Accounting | back 56 involves the entire process of identifying, recording, and communicating economic events |
front 57 Voucher | back 57 a document that serves as proof that terms of a transaction have been met |
front 58 accounting formula | back 58 assets - liabilities = net worth |
front 59 Assets | back 59 the money and items of value in a business |