Anything of value owned by a business that can be used to acquire other items, items such as cash, equipment, and supplies that will be used to conduct the daily activities of the practice?
Assets
Tool used to analyze the effect of a transaction on an account.
T- account
When using a T-account, an amount recorded on the left side it the T is called what?
Debit
The amount recorded on the right side is of a T- account is called what?
Credit
An amount of cash kept on hand used for making small payments for incidental supplies and is recorded and kept in a journal?
Petty cash
How many days are allowed after billing a patient before the bill is considered late?
30 days
Records of debit and credit activity of a patient in the practice? This would be inserted between the charge slip and the daysheet when using a peg-board system.
Ledger cards
T or F:
It is legal to postdate a check for payment?
False- It is not legal! The physician can still cash it.
"For deposit only" is a form of what type of endorsement?
Restrictive endorsement because it limits what can be done with a check.
Type of endorsement when the payee signs the back of a check with only their name?
Blank endorsement
What needs to be completed each business day when presented to the bank with the monies so the deposit will be properly credited to the correct bank account?
Deposit slip
T or F:
Errors need to be corrected immediately?
True
T or F:
The bank record and the office records must match?
True
How would you organize the currency including coins when preparing a bank deposit?
Place bills in order with the largest denomination on top, and arrange so that all bills are faceup and in the same direction to facilitate processing of the deposit at the bank.
T or F:
It is advisable to call a patient regarding a non-sufficient funded check
True
If a patient does not respond to a phone call regarding non-sufficient funded checks what could your next step be?
Send a letter
T or F:
Under the circumstance a non-sufficient funded check is returned from the bank you can charge the patient the NSF fee?
True
When an account is going to be paid out in 4 or more payments what form needs to be filled out that acts as a disclosure statement, includes the terms of the agreement, start and ending dates, financial charges, rate of interest, total payment due, etc?
Federal Truth in Lending Act agreement form
T or F:
Documentation should be provided concerning the agreement made by the patient?
True
When sending a collection letter to an over due account the wording should be what, and clearly understood by whom?
Wording needs to be firm but positive and understood by the receiver, the patient
Who would sign the form if a truth and lending form is required?
The person responsible for the account
If an account is sent to collections and tried to pay the physician's office thereafter, can the office accept the payment?
No, it must be given back and referred to be sent to the collection agency directly.
What specifies that employers who engage in interstate commerce must pay their hourly employees overtime at the rate of 1 1/2 times the regular rate for hours worked of 40 per week?
Wage and Hour Law (Fair Labor Standards Act)
Who controls the Fair Labor Standard act that can adjust the rate of minimum wage rate periodically?
