Full Test Bank Chapter 20 Patient Collections And Financial

1.

Payment by credit card for a medical practice ____.  
 

2.

Which of the following is a diplomatic way to ask a patient for payment?  
 

3.

On average how much will a medical practice generally receive if the provider charges $100 for services and the patient pays with a credit card?  
 

4.

If a medical practice accepts credit card payments, the American Medical Association (AMA) suggests the use of which guideline?  
 

5.

If your medical practice does not have an authorization device for credit card payment, ____.  
 

6.

Elena is a pregnant 16-year-old patient whose parents are divorced. She has legally left her mothers' home and set up housekeeping with her boyfriend, Alan. They plan to be married soon, but in the meantime, Elena shows you proof that she is "emancipated." Who is responsible for payment for Elena's treatment?  
 

7.

The most appropriate way to determine which parent has consent ability and payment responsibility for a minor child is to ____.  
 

8.

To which of the following patients would a medical provider most likely render treatment as a professional courtesy?  
 

9.

Which of the following information should be included on a statement?  
 

10.

A superbill ____.  
 

11.

When do most smaller practices send out their statements?  
 

12.

A common billing system that bills each patient only once a month but spreads the work of billing over the month is ____.  
 

13.

Which of the following is true regarding a statement?  
 

14.

An account that is open to charges made occasionally as needed is called a(n) ____.  
 

15.

A written-contract account is ____.  
 

16.

A person who is in town on vacation goes to a medical provider with symptoms of food poisoning. The type of account to set up for this patient is a(n) ____.  
 

17.

Which of the following is an accurate statement about open-book accounts?  
 

18.

Most of a practitioner’s long-standing patients have which type of account?  
 

19.

Which of the following is appropriate when placing an initial call to a patient about collections?  
 

20.

An initial letter of inquiry is generally sent when an account is ____ days past due.  
 

21.

If an account is ____ days past due, send a letter explaining that unless you hear from the patient by a specific date, the account will be given to a specific collection agency for collection.  
 

22.

A collection letter containing stronger wording that asks the patient to specify when the amount will be paid and to contact the office to make payment arrangements may be sent when an account is ____ days past due.  
 

23.

A letter that has a friendly, "we want to help" tone and gives the patient options but makes it clear that the patient must take some sort of action, is most appropriately sent when the account is ____ days past due.  
 

24.

The process of classifying and reviewing past-due accounts from the first date of billing is a(n) ____.  
 

25.

Which of the following governs the methods that can be used to collect unpaid debts?  
 

26.

Which of the following is also called Public Law 95-109?  
 

27.

Which of the following requires credit bureaus to supply correct and complete information to businesses for use in evaluating a person's application for credit, insurance, or a job?  
 

28.

Which of the following requires debt collectors to treat debtors fairly and without collection tactics such as harassment, false statements, threats, and unfair practices?  
 

29.

Which of the following requires creditors to provide applicants with accurate and complete credit costs and terms?  
 

30.

Which of the following prevents creditors from discriminating against applicants on the basis of age, sex, race, religion, marital status, or income?  
 

31.

Which of the following is a guideline for making a call requesting payment from a patient?  
 

32.

Which of the following protects telephone subscribers from unwanted telephone solicitations?  
 

33.

Which of the following should be a factor when you select an outside collection agency?  
 

34.

An accounts receivable policy ____.  
 

35.

If a practitioner decides not to extend credit to a patient, what must be done according to the Fair Credit Reporting Act?  
 

36.

A written agreement of the terms of payment between the patient and the practitioner is a(n) ____.  
 

37.

A payment arrangement in which the physician decides a patient will be billed every month for the full amount owed and should make whatever payment is possible each month is a(n) ____.  
 

38.

A characteristic of a mutual agreement is that ____.  
 

39.

Criteria for hardship cases include patients who ____.  
 

40.

An appropriate way to handle a patient relocation and address change is to ____.  
 

41.

Which of the following information about a patient should a medical assistant provide to the collection agency?  
 

42.

When is it appropriate for a medical provider to assess finance charges or late charges on past-due accounts?  
 

43.

Which of the following states that creditors may not discriminate against an applicant because he or she receives public assistance?  
 

44.

According to the Equal Credit Opportunity Act, how much will a practice have to pay if a credit applicant joins and wins a class action lawsuit against the practice?  
 

45.

Adrian is a patient whose parents were killed in a skiing accident a few months ago. Adrian was involved in an automobile accident this morning. He refused ambulance transport and a friend brought him to your office because he needed only minor wound care. He turned 21 last week, so he is legally an adult. He tells you he has no insurance and doesn't know how he will pay for his care. Adrian might be a candidate for ____.  
 

46.

When you ask Mrs. Redding how she would like to pay the $48 she owes for today's services, she hands you a credit card. When you look at the card, you realize that the card expired two months ago. Which of the following would be your best response to Mrs. Redding?  
 

47.

Mrs. Patterson brings her 17-year-old daughter Kelly in for a prenatal exam. When you inform Mrs. Patterson of the amount owed for today, she exclaims, "Oh, no! Kelly moved out last week and is staying with the rascal that did this to her. She can pay for her own care!" What should you do?  
 

48.

You are working at a walk-in outpatient clinic. A young woman who appears to be in her 20s comes in with a large cut on her left arm. When you ask for her insurance information, she says, "I don't need insurance. My father is the chief physician in this clinic. He'll treat me for free." What should you do?  
 

49.

The money the medical practice must pay out to run the practice is called accounts ________.  
 
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50.

The term for income, or money, owed to the practice is called accounts ________.  
 
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51.

The process of classifying and reviewing past-due accounts by age from the first date of billing is called ________.  
 
________________________________________

52.

If practitioners allow patients to pay for services over time, they are extending ________ to the patient.  
 
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53.

A credit ________ is a company that provides information about the creditworthiness of a person seeking credit.  
 
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54.

A common billing system that bills each patient only once a month but spreads the work of billing over the entire month, sending statements to groups of patients every few days, is called ________ billing.  
 
________________________________________

55.

A federal Truth in Lending Statement, which is a written description of the agreed terms of payment, is also called a(n) ________ statement.  
 
________________________________________

56.

A(n) ________ account uses the last date of payment or charge for each illness as the starting date for determining the time limit on that specific debt.  
 
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57.

A(n) ________ account is an account with only one charge, usually for a small amount.  
 
________________________________________

58.

Bills sent to patients that contain an itemized accounting of services performed, an indication of payments received from the patient or the patient's insurance, and an amount due to the practice are called ________.  
 
________________________________________

59.

The statute of ________ is the state law that sets a time limit on when someone can legally file a collection suit on a past-due account.  
 
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60.

A(n) ________, or encounter form, includes the charges for services rendered on that day, a request for payment or insurance copayment, and all the information for submitting an insurance claim.  
 
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61.

A(n) ________ account is one in which the physician and patient sign an agreement stating that the patient will pay the bill in a certain number of installments. If more than four installments are involved, this account is governed by the Truth in Lending Act.  
 
________________________________________

62.

Free treatment for ________ cases must be undertaken carefully and is given at the physician's discretion.  
 
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63.

A patient who moves without leaving a forwarding address and does not contact your office to make arrangements for payment of services he has received is known as a(n) ________.  
 
________________________________________

64.

When a patient pays using a(n) _______ card, the money is immediately moved from the patient's bank account to the medical practice account.  
 
________________________________________

65.

Another term for a bilateral agreement is ________ agreement.  
 
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66.

Most medical offices collect ________ from patients who belong to managed care organizations at the time of the office visit.  
 
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67.

Most medical offices have a(n) ________ with the office name on it for patients who pay by check to ensure that the name of the practice is spelled correctly on the check.  
 
________________________________________

68.

The person who has financial responsibility for a patient is known as the ________.  
 
________________________________________

69.

Large practices often use a(n) ________ billing service for both their insurance and patient billing procedures.  
 
________________________________________

70.

The Telephone Consumer Protection Act of 1991 protects telephone subscribers from unwanted telephone solicitation, which is commonly known as ________.  
 
________________________________________

71.

Which of the following accounts payable is typically the largest in a medical office?  
 

72.

Any payment the medical office makes for goods or services is called ____.  
 

73.

One of the most common or numerous disbursements is payment for ____.  
 

74.

What are business checks with stubs attached called?  
 

75.

A type of check that states it is void after a certain time limit is a ____ check.  
 

76.

Which type of check is usually used for payroll in the medical office?  
 

77.

Which type of check is purchased from a bank, written on the bank's own checking account, and signed by a bank official?  
 

78.

 A standard personal or business check that the bank verifies and then sets aside the funds to guarantee payment is which type of check?  
 

79.

 A special bank check that allows the depositor to withdraw funds from his or her account only is called a ____ check.  
 

80.

Which of the following checks are preprinted and might be used by a practitioner to pay for out-of-town conference expenses?  
 

81.

A practitioner may use a ____ check when he wants to withdraw money from the bank account but forgot his checkbook.  
 

82.

Which type of checks are preprinted in $10, $20, $50, and $100 denominations?  
 

83.

Which type of check would state "Pay to the Order of Myself Only"?  
 

84.

Today, a practice's financial summary is generally prepared by ____.  
 

85.

Which of the following demonstrates the practice’s profitability?  
 

86.

Which of the following shows how much revenue is available to cover expenses, to invest, or to take as profit?  
 

87.

A medical provider or practice manager may periodically review which of the following reports to ensure accuracy of the books?  
 

88.

Which of the following are usually components of a practice's accounting system?  
 

89.

The process of communicating the income and expenses of a business and its financial health is known as ____.  
 

90.

The part of the accounting process that consists of the systematic recording of business transactions is ____.  
 

91.

Which of the following is not an advantage of using a computerized bookkeeping system?  
 

92.

Another term for a write-it-once system is ____ system.  
 

93.

A double-entry bookkeeping system is based on the principle that the company's assets are equal to ____.  
 

94.

The process of recording services provided, the fees charged, and payments received in a daily log is known as ____.  
 

95.

At the beginning of each day, if you are using a pegboard system, what is the first thing you should put on the pegboard?  
 

96.

When you place a patient's ledger card on the pegboard, how should you position the card?  
 

97.

If you receive payment from a patient by mail after the office visit, you should record it ____.  
 

98.

When a patient has a credit balance, ____.  
 

99.

When the office manager or practitioner decides that an account is uncollectable, he or she will ____.  
 

100.

The part of a check that takes the form of a fraction and identifies the specific bank on which a check is drawn is the ____.  
 

101.

Which of the following is not a common type of endorsement?  
 

102.

An endorsement that consists simply of the payee's signature is a ____.  
 

103.

A third-party endorsement is also known as a ____.  
 

104.

An endorsement that specifies precisely how the check may be redeemed, such as only for deposit in the practice's bank account, is a ____.  
 

105.

A type of endorsement often used by attorneys when they accept a check on behalf of a client but have no personal claim on the transaction is _____.  
 

106.

Charise was seen today for an ongoing infection. When she comes to the counter to check out, you tell her that the charge for today is $54. Charise takes her $260 paycheck out of her pocket and endorses it "Pay to the order of BWW Medical Associates," signs it "Charise Williams," and hands it to you. What should you do?  
 

107.

Jim Sanderson comes to the office today to pay the balance due on his statement. He presents the statement, showing an amount due of $96.75, and a money order for $96.75. How should this payment be handled?  
 

108.

The process of comparing the office financial records with the monthly statement from the bank is known as ____.  
 

109.

You are reconciling the office checking account with the bank statement that arrived this morning. After accounting for unrecorded deposits, checks, and debits, you find that the total in your practice records is $11,760 and the bank's total is $12, 160. What is the first thing you should do?  
 

110.

Which of the following statements is true about electronic banking?  
 

111.

An overpayment on a patient’s account results in a negative number, or ________ balance.  
 
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112.

Another term for a statement of income and expense is ________ statement.  
 
________________________________________

113.

The ________ appears as a fraction on the upper edge of all printed checks and identifies the geographic area and specific bank on which the check is drawn.  
 
________________________________________

114.

Goods or properties that have a dollar value, such as the medical practice building, bank accounts, office equipment, and accounts receivable, are called ________.  
 
________________________________________

115.

The process of communicating the income and expenses of a business and its financial health is known as ________.  
 
________________________________________

116.

A(n) ________ statement shows how much revenue is available to cover expenses, to invest, or to take as profit.  
 
________________________________________

117.

A(n) ________ check is a check issued on bank paper and signed by a bank representative; it is usually purchased by people who do not have checking accounts.  
 
________________________________________

118.

A(n) ________ check is a payer's check written and signed by the payer; the bank withdraws the money from the payer's account and guarantees that the check will be paid when submitted.  
 
________________________________________

119.

After receiving a check, immediately ________ it to prevent the check from being cashed if it is lost or stolen.  
 
________________________________________

120.

The process of keeping a daily log of the patient charges and payments received from patients each day is called ________.  
 
________________________________________

121.

A(n) ________ check states that it is void after a certain amount of time and is sometimes used for payroll.  
 
________________________________________

122.

A(n) ________ is a kind of certificate of guaranteed payment that can be purchased from banks and post offices and from some convenience stores.  
 
________________________________________

123.

In order to be considered ________, or legally transferable from one person to another, a check has to be written and signed by the payer and include the amount of money to be paid.  
 
________________________________________

124.

One of the basic records of the single-entry system is the patient ________ cards, which show how much each patient owes.  
 
________________________________________

125.

The person to whom a check is written is the ________.  
 
________________________________________

126.

In order to be considered negotiable, a check must be signed by the ________.  
 
________________________________________

127.

The ________ system allows you to write each transaction once while recording it on four different accounting forms.  
 
________________________________________

128.

A(n) ________ gives a person the legal right to handle financial matters for another person who is unable to do so.  
 
________________________________________

129.

Once a month, when the practice receives the monthly checking account statement from the bank, the statement should be compared with the office's financial records to ensure that they are consistent and accurate. This process is called ________.  
 
________________________________________

130.

You should not accept a(n) ________ check that is made out to the patient rather than to the practice unless it is from a health insurance company.  
 
________________________________________

131.

________, or watching for changes in disbursements, is important because it helps control expenses.  
 
________________________________________

132.

A practitioner may use _______ checks when attending an out-of-town conference or whenever using a personal check or carrying a lot of cash is not appropriate.  
 
________________________________________

133.

Most practices may use checks from a standard checkbook or ________ checks, which often come in a three-ring binder and provide a stub for recordkeeping.  
 
________________________________________

134.

The part of the accounting process known as ________ is the systematic recording of business transactions.  
 
________________________________________

135.

When performing bookkeeping procedures, you should strive for 100% _______, because an undetected error at the first link will be carried through all the other links in the chain.  
 
________________________________________

136.

Electronic bookkeeping systems contain built-in tax tables that calculate tax ________ for you.  
 
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137.

The portion of a company's assets that are paid for is the company's ________.  
 
________________________________________

138.

The amount of money owed on a company asset is a(n) ________.  
 
________________________________________

139.

When posting a payment from a collection agency, post the payment from the agency in the paid column and place the agency's fee in the ________ column.  
 
________________________________________

140.

A(n) ________ banking system speeds up many banking tasks by performing calculations automatically.  
 
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141.

When a practice's income exceeds its expenses, the practice has a(n) ________; this is also known as "being in the black."  
 
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142.

When a practice's expenses exceed its income, the practice has a(n) ________; this is also known as "being in the red."  
 
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