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