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Admin. Practice Mgt
| Question | Answer |
|---|---|
| What is the term for a method of payment for health services where a health group is prepaid a fixed, per capita amount for each enrolled patient? a. Customary fee b. Quantum merit c. Usual fee d. Capitation | Capitation |
| What percentage of the nonPAR allowable fee can a physician collect? a. 20% b. 40% c. 60% d. 80% | 20% |
| Which is the most effective method for the medical assistant to discuss an outstanding balance with a patient? a. Via e-mail b. In person c. By postal mail d. By telephone | In person |
| To what does the "allowed amount" on the explanation of benefits (EOB) refer? | The amount the insurance company will pay under contract with the physician. |
| Jonas, a medical assistant, needs to call a patient to discuss the collection of an outstanding unpaid fees. Jonas should do all of the following except: | call the patient more than once each day. |
| A garnishment: | means attaching a debtor's property or wages by court order to pay debts. |
| revenue cycle | Life of the patient account from creation to payment |
| accounts receivable (A/R) | Total amount of money owed for services rendered by all parties |
| Patient registration | Questionnaire designed to provide identifying data to open an account; this includes items such as insurance information, and the person responsible for payment |
| Treating physician | Provider who renders service to patients |
| Diagnosis and procedure coding | Diagnosis is determination of nature of disease and substantiates medical necessity for procedures and services; procedures are medical services provided to diagnose or treat a pt; coding procedures and diagnosis directly lead to the physician being paid. |
| Charge capture | Recording and posting of all encounters, that is, procedures and services such as an office visit |
| Patient billing | Sending itemized statements to patients who have outstanding balances |
| Receiving payment | Incoming money or payment for services and procedures; it may come from the patient or from a third-party payer |
| Collections | Taking action to collect money owed in delinquent accounts in order to receive payment |
| Collection reimbursement | Receiving money from collection action |
| Insurance claims processing | Submitting insurance claims to federal and private insurance carriers for reimbursement |
| Resubmitting claims | Follow-up procedures for unpaid insurance claims |
| Third-party payer reimbursement | Receiving payment from insurance companies |
| Appeals process | Sending unpaid insurance claims to insurance carriers with additional documentation requesting reconsideration for payment |
| fee schedule | List of medical procedures and services with amounts charged |
| fee-for-service (FFS) | is one in which the patient pays the physician according to a set schedule of fees. |
| Quantum merit | Latin for “as much as he deserves”; a common-law principle that means the patient promises to pay the physician as much as he or she deserves for labor |
| physician’s fee profile | Compilation kept by each insurance carrier of a physician’s charges and payments made through the years for each professional service rendered to a patient; as charges are increased, the profile is then updated through the use of computer data |
| Usual fee | The fee normally charged for a given professional service by an individual physician (i.e., the physician’s usual fee) |
| Customary fee | The fee that is in the range of usual fees charged by physicians of similar training and experience for the same services within the same specific and limited socioeconomic area |
| Reasonable fee | The fee that meets the two preceding criteria or is considered justifiable by responsible medical opinion, considering any special circumstances of the particular case in question |
| participating fee | Amount paid to physicians who have contracts with Medicare |
| participating physician (PAR) | the physician agrees to accept payment from Medicare (80% of the approved charges/allowed amount) plus payment from the patient (20% of the approved charges/allowed amount) after the deductible has been met. |
| assignment | Agreement by which a patient assigns to another party (e.g., a physician) the right to receive payment from a third party (e.g., insurance plan or program) for the service the patient has received |
| nonparticipating fee | Set amount paid to physicians who do not have a Medicare contract |
| nonparticipating physician (nonPAR) | does not accept assignment—payment goes directly to the patient, and the patient is responsible for paying the bill in full. A nonPAR can accept assignment for all services or accept assignment for some services only. |
| limiting charge | Highest amount a physician who does not have a contract with Medicare (nonparticipating physician) can charge a Medicare patient |
| value-based reimbursement (VBR) | A type of patient reimbursement method or model that is centered around providing the minimum number of services necessary to improve a patient’s condition—thus reducing the expense to treat a patient. |
| professional courtesy | Discount or discharge of a debt granted to certain individuals at the discretion of the physician rendering the service |
| fee splitting | When one physician offers to pay another physician for the referral of patients. |
| credit | From the Latin credere, “to believe” or “to trust”; trust in regard to financial obligations; in banking, a deposit or addition to a bank account |
| multipurpose billing form | is a combination bill, insurance form, and routing document, which may be given to the patient at the time of the office visit. It is also referred to as a charge slip, communicator, encounter form, fee ticket, patient service slip, routing form,superbill |
| bill | Statement of fees owed for services rendered |
| ledger card | Individual financial record indicating charges, payments, adjustments, and balances owed and is created for each patient when they first receive medical services. |
| Cycle billing | Sending itemized statements to portions of the accounts receivable at certain times of the month; can be divided by alphabet, account number, insurance type, or by calendar day of first visit |
| collection ratio | the proportion of money owed compared to money collected on the accounts receivable. |
| Allowed amount | The amount of a charge that the insurance company will pay if they are under a contract with a physician. Also called approved amount, covered amount, and covered charges |
| Billed amount (charged amount, fee) | The amount the physician charges the patient and insurance company according to the fee schedule |
| Write off (adjustment, contract adjustment, courtesy adjustment) | For contracted physicians, the difference between the billed amount and the allowed amount; it is deducted from the books, that is, patient account or ledger |
| Copayment (copay) | A flat fee that the patient owes (up front) prior to services being rendered |
| Coinsurance payment (coinsurance copay, cost share) | The amount the patient is responsible for after insurance payment; it may be a percentage of the allowed amount, for example, 20% |
| Payment (insurance payment, contract payment, payment voucher, adjudication) | Amount of money received from the insurance carrier, plan, or program |
| Notes (glossary, codes) | Codes with definitions describing action taken on the claim (e.g., R1TFP—”your other health insurance was considered in the final disposition of this claim”). |
| explanation of benefits (EOB) | is a form that is sent by the insurance company to the patient explaining what was paid and deductibles that were applied. If any amount was not paid, there will be a code that directs the patient to the reason for that denial. |
| The Fair Debt Collection Practices Act | approved on September 20, 1977, is a consumer protection amendment, establishing legal protection from abusive debt collection practices, to the Consumer Credit Protection Act, as Title VIII of that Act. |
| Federal Equal Credit Opportunity Act | is a federal law that prohibits discrimination in any aspect of a credit transaction. This includes discrimination based on race, color, religion, national origin, sex, marital status, age, receipt of public assistance. |
| Federal Truth in Lending Act also known as Regulation Z | is a federal law that requires lenders to provide borrowers with standardized information before extending consumer credit. The law was created in 1960 to promote clarity and honesty by requiring lenders to disclose the terms and costs of consumer credit. |
| Truth in Lending Consumer Credit Cost Disclosure | It requires that providers disclose all costs including interest, late charges, and so on, prior to the time of service. |
| Fair Credit Billing Act | states that patients have 60 days from the date the statement is mailed to complain about an error. The complaint must be acknowledged and documented within 30 days of receiving it. Provider has 90 days to correct the error if an actual error occurred. |
| Fair Credit Reporting Act (FCRA) | federal legislation enacted in 1971 to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies. |
| Open-book account (also called open accounts) | Record of business transactions on the books that represents an unsecured account receivable where credit has been extended without a formal written contract; payment is expected by a specific period. Fall under the “oral contract” time limit. |
| Written-contract account | Agreement a patient signs to pay the bill in more than four installments under the Truth in Lending provisions. |
| Single-entry account | Account with only one charge listed and generally for a small amount. |
| What does the revenue cycle begin with? a. Claims processing b. Patient registration c. Receiving payment d. Payment collection | Patient registration |
| Which of the following describes a fee schedule? | A list of services or procedures and the dollar amount that will be charged by the physician. |
| What is cycle billing? | A billing method in which patients are billed at different times of the month based on their name or account number. |
| What is Remittance Advice? | A form from the insurance provider sent to the physician explaining what was charged, allowed, paid and denied. |
| What does the Fair Credit Billing act require? | Patients have 60 days from the date of statement is mailed to complain about an error. |
| If a patient is refused credit based on a credit report, what information should be provided to the patient? | The name and address of the credit bureau that supplied the information. |
| What is meant by aging accounts? | Analyzing accounts receivable to show a breakdown of the length of time the account is overdue. |
| What is meant by garnishment? | The court ordering that a set amount be taken out of a person's paycheck and sent directly to the physician's office to pay a debt. |
| What is the first step in performing a trace skip if a patient bill was returned in the mail? | Check the address on the returned mail to be sure it was addressed correctly. |
| Which of the following is a good way to communicate professionally with patients regarding fees and payments? | Politely offer any discounts or payment options that might be available if a patient says they cannot pay. |
| The revenue cycle: | includes the life of all patient accounts from creation to payment. |
| Quantum merit means: a. "as much as is fair". b. "the quality of the care received". c. "a portion of the fee". d. "the value of something". e. "as much as he deserves". | "as much as he deserves" |
| A fee that is normally charged for a professional service and that is in the range of usual fees charged by physicians with similar training and experience in the same type of socioeconomic area, considering any special circumstances. Is called? | UCR |
| A fee schedule that weights each procedure code with a unit value is called a: a. participating fee schedule. b. DRG system. c. RVS system. d. limiting charge. e. nonparticipating fee schedule. | RVS system |
| When a physician accepts all patients but refuses to accept reimbursement from any third-party, private, or government program and instead bills patients directly, this is referred to as: | individual responsibility program |
| When a physician "opts out" of insurance programs and instead charges patients a monthly or annual fee for services, this is referred to as: | concierge fees |
| The Centers for Medicare and Medicaid Services basis Medicare fees on the: a. RBRVS system. b. DRG system. c. UCR system. d. CMS system. e. RVS system. | RBRVS system |
| The most important collection practice to increase collections, improve public relations, and reduce patient complaints, business-office turnover, accounts receivable, and write-off amounts is: | stating fee-for-service and collecting fees at the time services are given. |
| A charge slip, encounter form, superbill, and transaction slip are other names for a: a. ledger card. b. multipurpose billing form. c. daysheet. d. service sheet. e. pegboard. | multipurpose billing form |
| The explanation of benefits that accompanies payment to the physician for the Medicare program is called a: a. Medicare Summary Notice. b. Medicare EOB. c. Payment Summary. d. Medicare Remittance Advice. e. CMS Remittance Advice. | Medicare Remittance Advice |
| What is the name of the credit law that states, "Collectors must identify themselves and the medical practice they represent; they must not mislead the patient?" | Fair Debt Collection Practices Act |
| If a physician denies credit to a patient, according to the Equal Credit Opportunity Act, how many days does the patient have to request the reason in writing? a. 10 days b. 30 days c. 60 days d. 90 days e. 120 days | 60 days |
| The majority of physician's patient accounts are: a. open-book accounts. b. single-entry accounts. c. credit accounts. d. open-ended accounts. e. written-contract accounts. | open-book accounts |
| Breaking down accounts into lengths of time that money is owed is called: a. analyzing accounts. b. separating accounts. c. maturation of accounts. d. aging accounts. e. account divisions. | aging accounts |
| Select the correct statement regarding collections. | The longer an account remains delinquent, the harder it will be to collect. |
| For best collection results, collection agencies like to get the account at a maximum of: | 5 or 6 months after the debt has occurred. |
| After a judgment is made in favor of the medical practice in small-claims court: | the physician still has to pursue the money. |
| The garnishment law, applied to a wage earner, is: a. effective for 30 days. b. effective for 60 days. c. effective for 90 days. d. effective for 120 days. e. a continuous judgment. | a continuous judgment |
| Garnishment is: | limited to 25% of disposable earnings in any workweek. |
| The most common types of bankruptcy filed by patients are: a. Chapter 7 and Chapter 11. b. Chapter 7 and Chapter 12. c. Chapter 7 and Chapter 13. d. Chapter 11 and Chapter 12. e. Chapter 12 and Chapter 13. | Chapter 7 and Chapter 13 |
| time limit | Period of time in which a notice of claim or proof of loss must be filed |
| aging accounts | Analysis of accounts receivable indicating 30-, 60-, 90-, and 120-day delinquency |
| Which credit or collection law has guidelines to follow when a debt needs to be collected? a. Fair Credit Reporting Act b. Equal Credit Opportunity Act c. Fair Debt Collection Practices Act d. Federal Truth in Lending Act | Fair Debt Collection Practices Act |
| Which form, sent with an insurance payment to the physiciam's practice, explains payments, allowed amounts, and write-offs? a. Advance Beneficiary Notice b. Medicare Summary Notice c. Remittance Advice d. Explaination of Benefits | Remittance Advice |
| What type of payment system requires that the patient pay for medical services directly to the provider and then files a claim for insurance reimbursement? a. managed care plan b. third-party reimbursement c. individual responsibility program | individual responsibility program |
| Which document from the insurance company provides information to the patient about amounts paid or denied on an insurance claim? a. summary notice b. remittance advice c. explanation of benefits d. coverage outline | explanation of benefits |
| When a patient has moved and left no forwarding address, what method can be used to trace them? a. searching databases on the internet b. sending letters to their last known address c. hiring a private investigator d. visiting the patient's employer | searching databases on the internet |
| Which fee schedule involves three component: a participating fee, a nonparticipating fee, and a limiting charge? a. private insurance fee schedule b. managed care fee shedule c. Medicare fee schedule d. professional fee schedule | Medicare fee schedule |
| When communicating the cost of a future procedure with a patient, what should be done prior to this discussion? | The insurance company should be contacted for information about how much the patient's policy will pay for the procedure. |
| Which legislation applies to any business that charges interest or agrees to more than four payments for a given service? a. Federal Truth in Lending Act b. Fair debt Collection Practices Act c. Fair Credit Billing Act d. Equal Credit Opportunity Act | Federal Truth in Lending Act |
| What type of business can be used to pursue payment on delinquent accounts? a. federal government b. collection agency c. office of the Inspector General d. insurance agency | collection agency |
| Which service may be used by a medical practice to prepare and send monthly statements and to place collection calls? a. billing service b. credit counselor c. collection agency d. clearinghouse | billing service |
| Which type of fee discount is no longer allowed by private insurers and the federal government? a. sliding fee schedule b. copayment waiver c. hardship discount d. professional courtesy | copayment waiver |
| What does the collection abbreviation "L1" stand for? a. late 1 (time-frame) b. level 1 (debt) c. line 1 (phone) d. letter 1 (sent) | letter 1 (sent) |
| Which term refers to dividing patient accounts by alphabet, or some other criteria, to send out portions of the monthly statements at certain times during the month? a. payment cycling b. monthly collections c. aging accounts d. cycle billing | cycle billing |
| Which law protects an employee from being dismissed if their wages have been garnished? a. Consumer Credit Protection Act b. Fair Debt Collection Practices Act c. Fair Credit Billing Act d. Bankruptcy | Consumer Credit Protection Act |
| Which term refers to a list of services or procedures and the dollar amount that will be paid by an insurance company for each? a. fee profile b. fee schedule c. allowed amount d. remittance advice | fee schedule |
| How soon should a "skip" begin to be traced? a. as soon as possible b. as soon as the physician approves c. as soon as the patient cannot be reached by phone d. according to office policy | as soon as possible |
| Which statement usually shows a breakdown of the amounts that are due or delinquent, and how many days they are delinquent? a. aging analysis b. monthly statement c. balance sheet d. accounts receivable control | aging analysis |
| Which term is used when a debtor's property or wages are attached by court order to pay debts? a. assignment b. garnishment c. quantum merit d. bankruptcy | garnishment |
| Which of the following is a range of usual fees among physicians in the same geographic are for the same service? a. customary b. fee profile c. usual d. reasonable | customary |
| When establishing a written financial agreement with a patient, what is the document called? a. full disclosure form b. truth in lending form c. schedule of payments d. credit report | truth in lending form |
| Administrative and clinical functions that contribute to the capture, management, and collection of payment are all part of which process? a. aging accounts b. revenue cycle c. collection ratio d. accounts receivable | revenue cycle |
| How should a check presented by a patient be verified? a. Ask to see two types of identification b. Match the address on the check with the patient's account. c. Check the patient's signature. d. Call the bank to confirm there are funds in the account | Ask to see two types of identification |
| Why is it a good practice to obtain a complete registration form from the patient at the time of the first visit, securing accurate personal and financial history? | to secure the information needed to begin to revenue cycle |
| What is a phrase on a billing statement that reminds a patient about a delinquent balance? a. warning message b. dun message c. request message d. threatening message | dun message |
| When should fees be discussed with a patient for the first time? a. when a patient arrives for the appointment b. when the appointment is confirmed c. when the appointment is scheduled d. after the patient's visit | when the appointment is scheduled |
| According to the Fair Debt Collection Practices Act, how many times in one day can a debtor be contacted? a. one time b. two times c. four times d. three times | one time |
| Managing the revenue cycle begins with obtaining complete and accurate demographic and insurance data on which form? a. patient registration b. ledger card c. assignment of benefits d. insurance form | patient registration |
| What is the name of a large company that keeps records on individual borrowers and their payment history? a. bankruptcy court b. collection agency c. federal government d. credit bureau | credit bureau |
| If you are unable to locate a patient who owes a balance, how soon should the account be turned over to a collection agency? a. within one week b. immediately c. at the next billing cycle d. within 30 days | immediately |
| How can a decision be made to deny credit to a patient? a. The patient's information from a credit bureau. b. The patient has a police report c. The patient is emotionally unstable. d. The patient is poorly dressed. | The patient's information from a credit bureau. |
| What is the term for a phrase used to remind a patient of a delinquent balance? a. remittance advice b. dun message c. garnishment d. reminder message | dun message |
| Which legislation specifies that if a business (medical practice) agrees to extend credit to one customer (patient), the same financial arrangement must be extend to all who request it? | Equal Credit Opportunity Act |
| Where can a physician's office obtain information about a patient's address, employment, salary, bankruptcy, and payments made on accounts? a. credit bureau b. insurance company c. collection agency d. relatives | credit bureau |
| Which of the following may a physician offer to patients paying cash, as long as he or she offers it to all patients? a. credit b. specialized services c. discount d. bonus | discount |
| What does the collection abbreviation "PP" stand for? a. patient payment b. patient promise c. phone payment d. promise to pay | promise to pay |
| Which chapter of the bankruptcy laws protects wage earners from bill collectors and allows them to pay bills over time? a. Chapter 7 b. Chapter 13 c. Chapter 20 d. Chapter 19 | Chapter 13 |
| Which type of fee discount may be offered in income-eligible uninsured patients? a. hardship discount b. sliding fee schedule c. professional courtesy d. copayment waiver | sliding fee schedule |
| Which phrase could be used as a dun message? a. " Your account has been closed until further notice" b. " Please call the office immediately about your balance" c. "Your next visit will be canceled unless you pay the balance due" d. "Please remit the | "Please remit the balance immediately; it is overdue" |
| Which document is a combination form that can be used as a bill, an insurance claim form, and a routing document? a. multipurpose billing form b. physician fee schedule c. insurance authorization form d. registration form | multipurpose billing form |
| If the "assignment of benefits" has been signed by the patient, what should be done if the insurance check is sent to the patient? | a new check should be generated by the insurance company |
| When writing a check, the "payee" is which of the following? a. The person who orders the bank to pay. b. The person who is directed to receive the money. c. The financial institution where the money is deposited. d. The person who signs the check. | The person who is directed to receive the money. |
| If the numerical and written amounts of a check do not agree ___. a. the bank will not accept it b. the payee will receive the lesser of the two amounts c. the payee receives the amount that is spelled out d. the payee receives the numerical amount | the payee receives the amount that is spelled out |
| When reconciling a bank statement___. | compare the beginning balance from the current bank statement with the previous month's ending balance |
| Which of the following best describes a cashier's check? | A check that is drawn by the bank, made payable out of the payee's bank account, and signed by an authorized bank official. |
| Which of the following best describes a single-entry accounting system? | Neither self-balancing nor well formulated; it does not rely on equal debits or credits—therefore, errors are not obvious in this system. |
| What is a daily (general) ledger? | A daysheet, daily log, or charge journal, in which all fees and payments for services provided are recorded every day. |
| Which of the following best describes a patient account? | A chronological (by date) history of all financial transactions for a patient. |
| What is a good rule to use when replenishing a petty cash fund? | Replenish the fund when it reaches 25% of its original amount. |
| When and how should patient payments be posted to the patient account? | Payments should be posted to the patient's account on the day they are received using the abbreviation ROA. |
| What is a contract adjustment? | When the insurance payment plus the patient responsibility is less than the amount of the charge is written off the books. |
| An accounts receivable control is a daily summary of _____. | dollar amounts that remains unpaid on all accounts, that is, money that is owed to the practice but has not been collected |
| Which of the following is a good way to locate errors in posting transactions? | Look for numbers that are transposed ($805 instead of $850) |
| Which of the following is a true statement about preparing bank deposits? | List each check separately on the back of the deposit slip. |
| What is the safest way to endorse a check to protect against fraud and theft? a. Restrictive endorsement b. Blank endorsement c. Full endorsement d. Selective endorsement | Restrictive endorsement |
| How can a bookkeeper determine if a bank statement is reconciled? | If the two adjusted balances (the statement and the checkbook) agree. |
| What is the abbreviation for a check that does not have enough money in the account to cover it? a. INF b. NPD c. NF d. NSF | NSF |
| In an EHR, which screen acts as a patient ledger? a. demographic screen b. account screen c. payment screen d. insurance screen | account screen |
| What is the process of the payee writing their name on the back of the check or money order as it appears on the front? a. debit b. deposit c. endorsement d. authorized signature | endorsement |
| Where is change obtained for a patient who pays with cash? a. change drawer b. bank c. deposit envelope d. petty cash fund | change drawer |
| When preparing a bank deposit, how are the checks listed on the deposit slip? a. separately b. largest amount first c. by using a red pen d. alphabetically | separately |
| Which type of accounting method is self-balancing? a. accounts payable b. double-entry accounting c. accounts receivable d. sungle-entry accounting | double-entry accounting |
| Which type of endorsment contains the phrase "for deposit only" to prevent forgery? a. blank endorsement b. full endorsement c. restrictive endorsement d. stamped endorsement | restrictive endorsement |
| Which form of payment can be purchased for face value plus a fee from a bank, convenience store, or other retail location and must be signed by the purchaser? a. money order b. certified check c. bank draft d. personal check | money order |
| Which part of a patient account contains a chronological history of all financial transactions for a patient? a. balance forward b. ledger card c. demographics d. general ledger | ledger card |
| In accounting, which report is a daily summary of the amount that is owed to the practice but has not been collected? a. end-of-day reconciliation b. open accounts c. accounts receivable control d. monthly summary report | accounts receivable control |
| When reconciling a bank statement and the statement balance and checkbook balance do not agree, what number should the difference by divided by to find a transposition error? a. 3 b. 9 c. 6 d. 2 | 9 |
| When a check is written, what is the name given to the person who will receive the money? a. creditor b. payee c. bearer d. maker | payee |
| What is the term for a regular withdrawal of funds from one account and transferring them to another account, in specific amounts, at specified times? a.point-of-sale banking b.bank by mail c.automated clearinghouse sys d.automatic transfer of funds | automatic transfer of funds |
| What is the term for unlawful practice of writing a check with the knowledge that there are not sufficient funds in the account? a. warrent b. intent to defraud c. nonsufficient funds d. overdraft | intent to defraud |
| Which type of accounting expedites posting, reduces the use of paper, increases accuracy, and incorporates electronic billing? a. active accounting b. computerized accounting c. manual accounting d. double-entry accounting | computerized accounting |
| What is the bookkeeping abbreviation for coinsurance? a. COINS b. coins c. CS d. CXL | COINS |
| Which type of machine imprints figures on a check so that they cannot be changed? a. bank-teller machine b. checking account machine c. fraud prevention machine d. check writer machine | check writer machine |
| How much cash is typically in a change drawer, depending on the size of the practice? a. $50 to $75 b. $10 to $50 c. $200 to $400 d. $50 to $200 | $50 to $200 |
| When is the depoist processed by the bank when using an after-hours depoist service? a. following afternoon b. following morning c. the next evening d. after 24 hours | following morning |
| How often are statements sent to patients who have an outstanding balance? a. every month b. every other week c. weekly d. every other month | every month |
| Which type of check is not considered negotiable but can be converted into a negotiable instrument or cash? a. voucher b. warrent c. limited check d. note | warrent |
| What is the most common way of check endorsement? a. blank endorsement b. full endorsement c. restrictive endorsement d. signature endorsement | blank endorsement |
| What is the first thing that should be done if a bank statement and the checkbook balance do not agree? a. have a second person check your work b. wait for next months statement c. look for a missed deposit d. recheck all details to find the error | recheck all details to find the error |
| What is the term used to describe the process of ensuring the accuracy of the bank balance on a monthly basis? a. adjusted b. reviewed c. audited d. reconciled | reconciled |
| Which statement describes computerized accounting? a. it is the recording of all transactions in the accounting system b. it is the process of balancing the checkbook c. has been replaced by accounting d. is the same as accounting | it is the recording of all transactions in the accounting system |
| The medical assistant has prepared a check to send to the electric company. The check has the business name and address preprinted, and Marcus Welby, MD has signed the check. In this case, who is the payee? | the electric company |
| What is the name of a computerized system that enables funds to be debited, credited, or transferred? a. electronic funds transfer system b. automatic bill payment system c. automatic funds transfer system d. after-hours depository system | electronic funds transfer system |
| What can be found on an individual patient ledger? a. total of interest accrual b. history of all financial transactions c. credit card number and expiration d. list of patients' assets | history of all financial transactions |
| Which type of endorsement is used on a check that is to be transferred to another person or business? a. transfer endorsement b. full endorsement c. blank endorsement d. restrictive endorsement | full endorsement |
| What is the term for subtracting checks and withdrawals from the bank balance? a. debited b. noted c. credited d. drafted | debited |
| What is the term for recording a transaction on a daily ledger? a. posting b. reconciling c. crediting d. balancing | posting |
| What is the name for a check that has been created from a digital image of the original? a. Electronic check b. Certified check c. Counter check d. Money order | Electronic check |
| What must be done to balance a patient account if an insurance company disallows a fee? a. uncollectable debt adjustment b. contract adjustment c. debit adjustment d. credit adjustment | credit adjustment |
| When using a pegboard accounting system, where are payments and adjustments simultaneously recorded? a. ledger and depoist slip b. ledger and daysheet c. check register and bank deposit d. daysheet and daily record | ledger and daysheet |
| Which statement is true regarding accounts receivable control? a. summary of money paid to vendors and businesses b. summary of money owed to vendors and businesses c. summary of money owed to the practice d. summary of money paid to the practice | summary of money owed to the practice |
| What is the term for adding a deposit to the balance of a bank account? a. note b. draft c. credit d. debit | credit |
| Where should money for minor office expenses be accessed? a. bank b. petty cash fund c. checking account d. change drawer | petty cash fund |
| Which type of check is so old when presented for payment that it is no longer valid? a. stale check b. old voucher c. postdated check d. warrent | stale check |
| When a check is written, what is the name of the person who signs the check? a. drawer b. payee c. bearer d. drawee | drawer |
| Employer's Quarterly Federal Tax Return, Form 941, must be filed by the physician-employer on or before _______. | April 30, July 31, October 31, and January 31 |
| What does an income statement show? | A summary of the income received, and expenses paid, and whether the practice made a profit or a loss. |
| To encourage utilization and productivity in a managed care setting, the physician may be eligible for a withhold. What is a withhold? | A percentage of the monthly payment that is kept and distributed at the end of the year if physicians have provided efficient care. |
| In calculating payroll, what is a "nonexempt" employee? | An employee that is subject to federal and state wage and hours laws and would be eligible for overtime. |
| What is found on a W-4 form? | The number of exemptions that an employee claims for their taxes. |
| What is found on an employee earnings record? | The total earnings, amounts deducted, and net income of an employee. |
| What is accounts payable? | Procedures done to pay bills and record expenses. |
| What type of report shows accounts receivable with a breakdown of the length of time an account is overdue? a. Statement of cash flows b. Aging report c. Income statement d. Balance sheet | Aging report |
| What is an employee's gross income? | The amount of income earned by an employee before anything is deducted. |
| Wage and Tax Statements, also called W-2 forms, must be completed and made available to employees each year by what date? a. January 31 b. April 15 c. August 1 d. December 31 | January 31 |
| The most widely used of all computer applications in a medical practice is: a. appointment scheduling. b. insurance billing. c. word processing. d. patient statements. e. financial management. | financial management |
| When the office manager compares total charges marked on encounter forms each day with total charges and payments from a computer-generated management report, the report used is a/an: | periodic transaction summary |
| When selling a medical practice, what report is used to determine the net worth of the business? a. Budget b. Profit and loss statement c. Accounts receivable report d. Periodic transaction summary e. Insurance aging report | Profit and loss statement |
| A report that shows the diagnoses and frequency of cases treated & the amount of income generated each month is found in the: a. daily transaction record b. profit and loss statement c. financial summary d. accounts receivable aging summary analysis | financial summary |
| In a managed care contract, a "stop loss" is: | a dollar limit of prepaid services incurred by any one patient during the plan year. |
| "Risk pools" are: a. distributed to the patient. b. used to pay for nonprimary care services in managed care plans. c. set aside in fee-for-service plans. d. the same as withholds. e. illegal. | used to pay for nonprimary care services in managed care plans |
| When paying bills, the office manager would record expenditures in a/an: a. accounts receivable ledger. b. disbursement record. c. payroll register. d. notebook. e. bank register. | disbursement record |
| If an overpayment is received from a government agency, for example, Medicare, the provider must report the reason for the overpayment and return the money within: a. 10 days. b. 30 days. c. 60 days. d. 90 days. e. 120 days. | 60 days |
| An administrative medical assistant is considered a/an: a. exempt employee. b. nonexempt employee. c. salaried employee. d. contract employee. e. pay-for-hire employee. | nonexempt employee |
| A federal minimum wage is set for all employees: a. 15 years of age or older. b. 16 years of age or older. c. 18 years of age or older. d. 20 years of age or older. e. 21 years of age or older. | 20 years of age or older |
| Although state laws vary, when an employee works greater than 5 hours, typically a: | 30-minute mealtime is required and a 10-minute break. |
| The Fair Labor Standards Act states that all employees 16 years of age or older should receive: | 1 ½ times the hourly rate when working over 40 hours a week. |
| Information used to calculate pay and record on each employee's payroll register comes from: a. the employee handbook. b. the employee's resume. c. the office checkbook. d. the employee's timecard. e. the office policy and procedures manual. | the employee's timecard |
| Employees must be paid within: a. 3 days of the end of each pay period. b. 5 days of the end of each pay period. c. 7 days of the end of each pay period. d. 10 days of the end of each pay period. e. 2 weeks of the end of each pay period. | 10 days of the end of each pay period |
| If an employee resigns, wages must be paid within: a. 24 hours. b. 36 hours. c. 72 hours. d. 1 week. e. 2 weeks. | 72 hours |
| Typically, both the employee and the employer pay the same tax rate for: a. State Tax and FICA. b. Medicare tax and State Tax. c. Federal Income Tax and State Tax. d. FICA and Federal Income Tax. e. FICA and Medicare tax. | FICA and Medicare tax |
| An Employer's Quarterly Federal Tax Return, Form 941, must be filed by the physician-employer on or before: | April 30, July 31, October 31, January 31 |
| Effective 2014, employers with 50 or more employees must provide a comprehensive affordable health plan that costs below: a. 5.5% of an employees' income b. 7.5% of an employees' income c. 8% of an employees' income d. 9.5% of an employees' income | 9.5% of an employees' income |
| The Federal Unemployment Tax Act (FUTA) applies to employers that pay employees at least: | $1500 in wages in any calendar quarter |
| When following the medical assistant's payroll and tax schedule, payroll tax deposits in an amount exceeding $50,000 need to be made: a. monthly. b. by the 1st of every month. c. by the 15th of every month. d. semimonthly. | by the 15th of every month |
| Which financial report states how much income an employee generated during a certain time period? a. aging statement b. annual budget c. profit and loss d. accounts receivable | profit and loss |
| Which nine-digit number would be used for federal tax accounting purposes? a. employer identification b. social security c. FICA d. medical license | employer identification |
| Which is the last date W-2 statements are provided? a. December 1 b. January 31 c. December 31 d. January 1 | January 31 |
| Which tax form must be filed by employers four times per year (quarterly) to report income taxes withheld? a. Form 941 b. Form 940 c. Form W-4 d. Form W-3 | Form 941 |
| Which process would occur with capitation stop loss limits? | pay the physician in addition to the capitated amount for charges beyond the contract limit |
| Where is a W-2 form submitted? a. employer's accountant b. Social Security Administration c. health insurance claims d. medical records | Social Security Administration |
| Which method is used to find out the monthly cost of performing a specific procedure or service? | Divide the total expenses for a procedure by the number of that specific procedures |
| Which category describes monies owed to creditors at a given point in time? a. investment fund b. accounts payable c. accounts receivable d. loans due | accounts payable |
| Which process is used to analyze the productivity of a medical practice? a. collection ratio b. physician to patient ratio c. projected revenue d. estimated expenses | collection ratio |
| On which date is the first quarterly tax return due? a. May 31 b. April 30 c. June 30 d. March 31 | April 30 |
| At which age is the federal minimum wage amount paid to an employee in first pay period? a. 18 years of age b. any age a person begins employment c. 16 years of age d. 20 years of age | 20 years of age |
| Which legislation provides for taxes to be collected and subsidizes state compensation programs for people that lose a job? a. Federal Unemployment Tax Act (FUTA) b. Federal Labor Law c. Federal Insurance Contributions Act (FICA) d. federal tax code | Federal Unemployment Tax Act (FUTA) |
| Which form shows an employee's total work payment and the amount of income tax withheld? a. Wage & Tax Statement (W-2) b. Employee's Withholding Tax Allowance Certificate (W-4) c. Employee's Tax & Earning Record (W-1) d. Transmittal of wage & Tax W-3 | Wage & Tax Statement (W-2) |
| Which business tax form must be filed four times a year? a. Quarterly Profit and Loss Statement b. Transmittal of Wgae and Tax Quarterly Statements c. Quarterly Federal Income Tax Withholding Form d. Employer's Quarterly Federal Tax Return | Employer's Quarterly Federal Tax Return |
| Which category would be used for overdue accounts based on how long they have been delinquent? a. accounts receivable total b. aging analysis c. profit and loss statement d. balance sheet | aging analysis |
| Which form is used for an employee request to add more exemptions for tax purposes? a. W-2 b. W-4 c. W-0 d. W-3 | W-4 |
| Which payroll deduction is a fringe benefit? a. dependent credit b. federal income tax c. social security payroll tax d. health insurance | health insurance |
| Which term describes net earnings after expenses? a. capital b. assets c. profit d. gross income | profit |
| Which document would be used to identify eligibility to work in the United States? a. timecard b. health insurance card c. credit card d. social security card | social security card |
| Which information is the most important to identify a finanical position at a specific point in time? a. profit statement b. accounts receivable report c. account payable report d. balance sheet | balance sheet |
| Which information projects the needs of the organization in the future? a. profit and loss b. expense report c. earnings statement d. annual budget | annual budget |
| Which term identifies total income before expenses? a. net income b. gross income c. net worth d. gross worth | gross income |
| Which date is a monthly employer payroll tax deposit made? a. Any established day for a pay period b. The last day of the month c. The 15 th of each month d. The 1 st of each month | The 15 th of each month |
| Which report presents the financial position of the medical practice at a particular point in time? a. Gross income statement b. Daily transaction register c. Annual budget d. Periodic transaction summary | Periodic transaction summary |
| Under Social Security, what agency has three separate programs financed from one payroll tax to which employers and employees contribute at a rate specified by law? | Federal Insurance Contributions Act (FICA) |
| When would an applacation for a new employer tax identification number be completed? a. when a physician starts a business with staff b. when a physician is hired c. each time a new staff member is hired d. Annually for each staff member | when a physician starts a business with staff |
| Which item is an alternate to a standard paycheck? a. electronic deposit b. bank card c. credit card d. deposit statement | deposit statement |
| Which computer application provides an accurate business analysis in a medical practice? a. financial management software b. insurance claim completion software c. appointment scheduling software d. electronic claim transmission software | financial management software |
| Which amount is the total revenue without expenses? a. yearly income b. asset income c. net income d. gross income | gross income |
| For which purpose is an INS Form I-9 used? a. verify that an employee can legally be employed in the US b. request an employer identification number c. specify the number of exemptions to be applied in a given year d. request a Social Security number | verify that an employee can legally be employed in the US |
| Which deduction would be made from an employee's gross income based on the number of exemptions and amount earned for a pay period? a. state withholding tax b. Social Security tax c. federal withholding tax d. federal unemployment tax | federal withholding tax |
| Which listing would identify balances owed to the practice? a. insurance claims report b. accounts receivable report c. aging analysis d. accounts payable report | accounts receivable report |
| Which category would include wages, salaries, and benefits? a. expenses b. income c. capital d. accounts receivable | expenses |
| Which device is appropriate for writing checks? a. pencil b. roller ball c. permanent marker d. ball point pen | roller ball |
| Which form is used to document an employee's hours worked in a given week or pay period? a. sign-in sheet b. payroll log c. balance sheet d. timecard | timecard |
| Within which time period must a provider return an overpayment received from a goverenment agency? a. 30 days b. 45 days c. 90 days d. 60 days | 60 days |
| Which information is included in an accounts receivable report? a. fee adjustments b. recent payments c. expense charges d. money to be paid | money to be paid |
| Which publication includes the amount of Federal Unemployment Tax to be paid? a. Employer's Tax Guide b. Wage and Tax statement c. Employer's Quarterly Federal Tax Return d. Federal Tax Instructions | Employer's Tax Guide |
| Which form is used to document deductions for federal, state, FICA, and local income taxes? a. Wage and Tax Statement b. Employee's Withholding Allowance Certificate c. Transmittal of Wage and Tax Statements d. Employer's Quarterly Federal Tax return | Wage and Tax Statement |
| According to which segments are unpaid accounts typically "aged"? a. 10, 30, 45, and 60 days overdue b. 20, 30, 40, and 50 days overdue c. 30, 60, 90, and 120 days overdue d. one year overdue | 30, 60, 90, and 120 days overdue |
Created by:
Diamond87