Help
Options
Question
Accounts Receivable
click to flip
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't know
Question
Accounts payable
Remaining cards (44)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
blue bookkeeping
bookkeeping
| Question | Answer |
|---|---|
| Accounts Receivable | money owed ...TO ...the practice |
| Accounts payable | money owed...BY...the practice |
| Bookkeeping | Is an organized and accuraterecord-keeping system offinancial transactions for a business. |
| Most medical practices use the | single-entry bookkeeping system |
| The foundation of accounting is this equation: | Assets = liabilities + equity |
| Assets are | all things of value owned by orrelating to the practice |
| Liabilities are | monies owed |
| Equity refers to | the amount of capitalthe physician has invested in the practice |
| The word 'balance' means | 'be equal' |
| The word 'debit' means | 'charge' |
| the word 'credit' means | 'payment' |
| Because the 2 sides of the accounting equation must always 'balance', each transaction requires | a 'debit' (charge) on one side of the equation and a 'credit' (payment) on the other side of the equation.....the amount of the debit and credit must be equal |
| Most medical offices use the ...type of accounting | 'cash basis' type of accountingwhich means that income is considered as income ONLY when money is collected and that payables (money owed) are considered expenses only when money is paid |
| What is the 'pegboard' | Is a 'write-it-once' bookkeeping system that uses a board with pegs running down the left side.The pegs hold a DAY SHEET, or daily journal, in place on the board.The transactions of the day are recorded on this day sheet. |
| What is a ledger card | 'record of the patient's financial activities' |
| When a pt. transaction occurs, the bookkeeper places the | 1. ledger card ...over...the day sheet2. the charge slip(preprinted pt bill)...over the ledger card on the next available entry line3. and make appropriate entry on the ledger card |
| Basic Bookkeeping Tips | 1. Always use black ink - DO NOT use pencil2. Write legibly3. Never erase or white out errors. Draw a single line through the incorrect entry, record the correct information and initial the charge3. Always double-check each entry. |
| The 'Day Sheet' keeps track of ..... | 1. daily pt. transactions ....such as...2. charges for services to pts,payments received from pts and insurance carriers and adjustments to pt accounts. |
| Sections of a 'Day Sheet' are | 1. deposit slip2. distribution columns3. payment section4. adjustment section5. 'posting proofs' |
| 'Posting Proofs' | listing financial transacions in a ledger |
| The distribution columns are used to | assign charges for various services**how these columns are used depends on the needs of the individual practice. |
| What is an 'adjustment' | an entry to change an account |
| The 'posting proofs' section is where | the day's totals are entered and the day sheet is balanced(as one would balance a checkbook) |
| If the 'posting proofs' do NOT balance... | an error has been made on the day sheet |
| The 'day sheet' is important because it keeps track of | accounts receivable |
| What are the 5 sections of a pegboard day sheet? | 1. adjustment column2. deposit slip3. distribution columns4. payments section5. posting proofs section |
| Ledger card is | 1. a legal document2. should be kept for 7 years3. Is a financial record for each pt. |
| What is an Encounter Form/Charge Slip? | 1. preprinted statement2. lists codes for basic office charges 3. has sections for pts. current balance and next appointment4.2-3 part forms5. Super bills and encounter forms are the same6. office only needs to keep 1 copy |
| How do ledger cards and encounter forms differ? | Ledger cards: provide an overall financial record of a ptEncounter Form: provides documentation of today's financial activity |
| Brackets indicate... | the opposite of the normal meaning of that columnTo indicate a credit [brackets] are used |
| ROA | received on account |
| When 'posting'...First thing is... | make sure you have the correct pts information in front of you |
| Credits are handled in 2 ways | 1. the credit stays on the acct. and is subtracted from the charges on the pts next visit2. the pt is mailed a refund for the amt of the overpayment. How an overpayment is handled depends on office policy and the amt of the overpayment |
| How to handle an overpayment | 1. depends on office policy and the amt of the overpayment2. overpayments under $5 are left on acct as a credit3. over $5 are refunded |
| Adjustment section... | is used to indicate nonstandard office fees and to credit an account for uncollectible monies |
| How does a credit adjustment differ from a debit adjustment? | 1. A credit adjustment reduces the pts account balance2. a debit adjustment increases the pts account balance |
| Computer accounting... | 1. no day sheets2. printable super bills, billing, receipts, checks, reports, and reminders to pts3. no paper trail4. daily accounting can be printed as needed |
| What is a service charge? | a fee charged monthly for using an account |
| NSF | non sufficient funds |
| returned check fee | fee charged for any NSF check |
| ABA number | American Bankers Association#used to identify the bank on which the check is written |
| Receiving Checks - what needs to be done? | 1. First endorse check2. Endorse check by writing or using a rubber stamp - the name and number of the account also include "For Deposit Only"3. verify that all info is correct on check4. Do not accept check without preprinted info unless Doc ord |
| Reason for endorsing check First... | It ensures that the bank deposits the payments to the correct payment. |
| Bank statement consists of... | 1. list of all checks written with amts2. all deposits and their amts3. electronic transactions4. service charges5.all withdrawals and there amts6 NSF charges |
| What is Petty cash? | 1. cash fund kept in office for small purchases2. the value of petty cash should always remain the same3. petty cash is always a designated sum of $4. when $ is taken from the fund a receipt of voucher is placed in the fund to verify the purchase |
Created by:
CHT