Ch 9 Office Procedures

Front 1

a medical practice is a business and must produce a profit

Back 1

True

Front 2

A charge slip is the original record of the doctors services and the charge for those services.

Back 2

True

Front 3

A check from an insurance company includes payment for only one patient.

Back 3

False - check can be written for more than one person

Front 4

The person who writes a check is called the payee.

Back 4

payer

Front 5

power of attorney give someone the legal right over financial matters for one who is too sick to do so.

Back 5

True

Front 6

a bank will never accept a list of deposited items on something other than the bank provided depoist slip, even if the bank's deposit slip is attached.

Back 6

False - since the bank's deposit slip is attached with the account number they will accept a list of deposit items

Front 7

Reconciliation is usually performed once a month.

Back 7

True

Front 8

When reviewing the electronic checkbook register, change any information that is not correct.

Back 8

True

Front 9

The balance checkbook function electronically reconciles the monthly bank statement.

Back 9

True

Front 10

compound interest is paid on teh initial investment and on the interest earned on the investment

Back 10

True

Front 11

For employers, retirement plans can raise business taxes.

Back 11

False- retirement plans do not raise business taxes

Front 12

The payer is the person who will receive the payment

Back 12

False - the payee

Front 13

Do not accept a third-party check unless it is from the health insurance company

Back 13

True

Front 14

Vesting means that yyou have a legal right to all the money in your account

Back 14

True

Front 15

If you terminate employment, you do not have to transfer or roll over the funds in your 401(K) account to an Individual Retirement Account.

Back 15

True

Front 16

A daily log includes the patient's name, address, home and work telephone number, and the name of the person who is responsible for charges

Back 16

False- charges and payments

Front 17

It is important to use the daily log sheet when organizing the practice's bookkeeping system.

Back 17

False - it is not important

Front 18

a lost bank deposit receipt could cost a medical practice thousands of dollars

Back 18

True

Front 19

Never accept a check marked payment in full unless it actually pays the complete outstanding balance

Back 19

True

Front 20

Paid vacations, paid holidays, and disability and life insurance are examples of employee benefits

Back 20

True

Front 21

Basic accounting involves managing accounts receivable and accounts payable.

Back 21

True

Front 22

In a medical practice, accounts receivable describes the money that is paid out to run the practice.

Back 22

False- accounts receivable describes the money being received

Front 23

Accounts payable represents the money patients owe in return for medical services.

Back 23

False- Money paid out to run a practice

Front 24

The fee schedule shows the charges for service provided by the practice.

Back 24

True

Front 25

A usual fee is the average fee charged for a service or procedure by comparable doctors in the same area.

Back 25

false - the appropriate fee is the average charge for service

Front 26

A customary fee is the fee a doctor charges for a service or procedure

Back 26

False - a customary fee is the average fee charged for a procedure by similar doctors in the same area

Front 27

There is a growing tendecy to determine fees by national rather than regional trends

Back 27

True

Front 28

Encourage patients to pay by credit care

Back 28

False -

Front 29

The credit card company deducts a percentage of each patient charge for its collection service.

Back 29

True

Front 30

It is becoming more common that medical practices do not accept any insurance

Back 30

False - it is common that medical practices except insurances

Front 31

TRICARE operate differently from other insurers.

Back 31

True

Front 32

With cycle billing, you send invoices to a group of patients every few days

Back 32

True

Front 33

It is acceptable to threatento send a patient's account to collectins even if you are not ready to do so.

Back 33

False - Unacceptable

Front 34

Once an agency has taken over an unpaid account, there should be no more correspondence between the physician's office and the patient about the account.

Back 34

True

Front 35

A class action lawsuit is a lawsuit in which one or more people sue a company that wronges all of them in the same way

Back 35

True

Front 36

A fine is money paid as punishment for intentionally breaking the law

Back 36

True

Front 37

To protect the practice from lost income because of nonpayment, the practice may buy accounts receivable insurance.

Back 37

True

Front 38

A physician would never extend credit to a patient who is unable to papy because of high medical bills.

Back 38

False - a physician can

Front 39

If a payment agreement between the patient and physician includes more than four payments, it is not regulated by the Truth in Lending Act

Back 39

False - the Truth in Lending Act requires that creditors provide applicants with accurate and complete credit costs and terms

Front 40

Free Treatment for hardship cases is at the physicians discretion

Back 40

True

Front 41

Most practices try to reduce expenses by controlling accounts payable

Back 41

True

Front 42

The physician usually authorize several people people to handle the purchasing of supplies and other products

Back 42

False- the medical assistant

Front 43

An employer identification number is requied by law from every employer for federal tax accounting purposes

Back 43

True

Front 44

Federal unemployment tax is a deduction from employees paychecks

Back 44

False - unemployment is paid by the employer

Front 45

A physician would have a lower unemployment tax rate than an industry would

Back 45

True

Front 46

The purpose of the petty cash fund to avoid writing checks for small amounts

Back 46

True

Front 47

Hourly wage x hours worked =net earning.

Back 47

False - gross earnings

Front 48

The fair labor standards Act requires overtime payments for part time hourly employees for every hour worked beyond the normal eight hours in a day or 40 hrs in a week

Back 48

True

Front 49

The law requires all employers to withhold money from employees' net earning to pay federal , state and local income taxes

Back 49

False - the law does not require

Front 50

Have all employees update their W - 4 forms once year

Back 50

True

Front 51

The percentage the employer pays for federal unemployment taxes decreases if the employer also pays state unemployment taxes.

Back 51

True

Front 52

The employee's gross earnings are his take home pay.

Back 52

The employee's net earnings are his take home pay

Front 53

Net earnings - total deductions = gross earnings

Back 53

Gross earnings - total deductions = net earnings

Front 54

if your practice is not required to use EFT, you must submit employment taxes with a Federal Tax Deposit Coupon

Back 54

True

Front 55

An employer must pay FUTA tax if employees' wages total more than $1500 in any quarter.

Back 55

True

Front 56

A Federal Unemployment Tax Return is also called Form W-4

Back 56

False - the number of dependents an employee is claiming is found on Form W-4

Front 57

A common disbursement for a physician's office is payment for equipment

Back 57

True

Front 58

When ordering supplies, it is better to buy too little and reorder more frequently than to buy too much

Back 58

False - it is not better to order too little

Front 59

If your office does only a few throat cultures a year, it makes more sense to send those patients elsewhere for the test than to stock the supplies required.

Back 59

True

Front 60

You may purchase holdiay decorations from the petty cash fund

Back 60

True

Front 61

All patient's financial accounts should be brought up to date

Back 61

at the time patient discharged

Front 62

Payments made by a patient represnt the doctor's

Back 62

accounts receivable

Front 63

The patient's ledger card has the function of serving as

Back 63

a complete financial record of his charges, payments and balance

an itemized statement

a record of all visits

Front 64

The Federal Communications Commission public notice governing the use of the telephone for collections prohibits

Back 64

The FCC prohibits calling at odd hours

repeated calls to the debtor

calls to the employers

Front 65

FICA provided for which of the following

Back 65

social security and old age benefits

Front 66

The employee's Withholding Exemption certification is called

Back 66

W-4

Front 67

The amount of Social Security which is deducted from an emploee's paycheck is based on

Back 67

percentage of the gross pay

Front 68

The Employee's Witholdings Exemption Certificate must be filled out by the

Back 68

W-4 must be filled out by the employee

Front 69

The main source of communication between the doctor and the public is the

Back 69

telephone

Front 70

An ABA number

Back 70

identifies a check and the bank it is written on

Front 71

A bank statement is reconciled with

Back 71

depositor's checkbook

Front 72

The payee is not guaranteed payment if the check received is a

Back 72

personal check

Front 73

The term CURRENT ASSETS often refers to

Back 73

assets that can be readily converted to cash

Front 74

Dollars enteries made on the left side of the ledger are called

Back 74

debit enteries

Front 75

An endorsement of a check appears as the

Back 75

signature of the payee on the back of a check

Front 76

Any checks received for the doctor should be immediately

Back 76

given a restrictive endorsement

Front 77

All disbursements, regardless of purpose, should be

Back 77

made by check

Front 78

A rubber stamp may be used for

Back 78

restrictive endorsements

Front 79

the fee a doctor most frequently charges for a given procedure is called

Back 79

usual fee

Front 80

The patient's ledger should be kept

Back 80

in seperate file

Front 81

An employee payroll sheet is also termed as a

Back 81

compensation record

Front 82

The process of recording all the details of a transaction in the daily journal before an entry is made in the general ledger is known as

Back 82

journalizing

Front 83

The basic forms which comprise the pegboard bookkeeping system are

Back 83

daybook sheet
patient ledger care and
charge slip

Front 84

Pegboard posting is often referred to as which of the following systems?

Back 84

write it once

Front 85

business reply mail is an example of

Back 85

first class mail

Front 86

Newspapers and periodicals are sent by

Back 86

second class mail

Front 87

First class mail with valuable contents should be sent

Back 87

register mail

Front 88

Packages and printed matter weighing more than 16 oz are sent by

Back 88

fourth class mail

Front 89

Fourth class mail is known as

Back 89

parcel post

Front 90

the least expensive way of shipping heavy and bulky goods is by

Back 90

freight

Front 91

The straight telegram is a message of

Back 91

15 words

Front 92

How often is the physicians narcotic license renewed?

Back 92

annually

Front 93

If a patient who has complained of chest pain collapes in the office

Back 93

be sure the patient is breathless and pulseless before administering CPR

Front 94

A patient calls in to the office and states they have received a blunt injury to the eye. You should advise to

Back 94

come in as soon as possible

Front 95

the balancing of the monthly bank statement with the checkbook is referred to as

Back 95

reconciling the bank statement

Front 96

An aging of the acoounts receivable ananlysis

Back 96

is used to identify collection problems

Front 97

All payments received are referred to as

Back 97

gross income

Front 98

A system in which the money charges is not considered income until the money is received ie called

Back 98

accrual basis

Front 99

a patient's financial account is referred to as

Back 99

ledger card

Front 100

On eht ledger care, the adjustment column is used for

Back 100

charge corrections and refunds

Front 101

a listing of specific services rendered and fees charged is an

Back 101

itemizied statements

Front 102

Deductions are subtracted from what source when computing payroll

Back 102

none of the choices

Front 103

A check dated two months from today's date is considered

Back 103

postdated

Front 104

What is the latest date an employer may give the W-2 form

Back 104

January 31

Front 105

What form is the physician required,by the IRS, to complete every 3 months for FICA income tax

Back 105

941 is required

Front 106

Major medical equipment such as X-RAY machines are known as

Back 106

fixed assets

Front 107

When a patient must cancel an appointment, you should

Back 107

immediately offer a new appointment time

Front 108

One way to prevent patients from forgetting future appointments is

Back 108

call them the day before their appointment
do not book more than 2 weeks in advance
use appointment cards

Front 109

What should be avoided by the medical assistant

Back 109

giving medical advise
arguing with the patient
discussing the patients condition

Front 110

When one encounters a baffling term, you should

Back 110

consult a dictionary

Front 111

The first way to communicate courtesy to the telephone caller is to

Back 111

answering promptly and identifying yourself

Front 112

The behavior pattern of a person who is ill may be changed by a medical assistant that has an attitude which reflects

Back 112

friendliness, reassurance and understanding

Front 113

Since the medical assistant's day is filled with interpersonal constants, it is necessary to

Back 113

be well groomed
be prepared to handle emergencies
be understanding

Front 114

When dealing with irritable patients, the medical assistant should

Back 114

establish a friendly atmosphere

Front 115

a good working relationship between the doctor and the assistant will be enhanced if he/she

Back 115

studies the doctor's way of doing things and tries to anticipate his/her needs

Front 116

the medical assistant should maintain pleasant relations by

Back 116

being diplomatic, listening carefully, explaining delays

Front 117

A proper reception for the patient is one which

Back 117

greeting the patient by name and a smile