Test Bank Patient Collections And Financial Management Ch20 - Medical Assisting Admin 7e | Test Bank Booth by Kathryn Booth, Leesa Whicker, Terri Wyma. DOCX document preview.
Student name:__________
1) The money the medical practice must pay out to run the practice is called accounts __________.
2) The term for income, or money, owed to the practice is called accounts __________.
3) The process of classifying and reviewing past-due accounts by age from the first date of billing is called __________.
4) If practitioners allow patients to pay for services over time, they are extending __________ to the patient.
5) A credit __________ is a company that provides information about the creditworthiness of a person seeking credit.
6) 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.
7) A federal Truth in Lending Statement, which is a written description of the agreed terms of payment, is also called a(n) __________ statement.
8) 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.
9) A(n) __________ account is an account with only one charge, usually for a small amount.
10) 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 __________.
11) 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.
12) A(n) __________, or encounter form, includes the charges for each service rendered on that day, a request for payment or insurance copayment, and all the information for submitting an insurance claim.
13) A(n) __________ account is one in which the provider 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.
14) Free treatment for __________ cases must be undertaken carefully and is given at the provider’s discretion.
15) 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) __________.
16) When a patient pays using a(n) __________ card, the money is immediately moved from the patient's bank account to the medical practice account.
17) Another term for a bilateral agreement is __________ agreement.
18) Most medical offices collect __________ from patients who belong to managed care organizations at the time of the office visit.
19) 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.
20) The person who has financial responsibility for a patient is known as the __________.
21) Large practices often use a(n) __________ billing service for both their insurance and patient billing procedures.
22) The Telephone Consumer Protection Act of 1991 protects telephone subscribers from unwanted telephone solicitation, which is commonly known as __________ .
23) An overpayment on a patient’s account results in a negative number, or __________ balance.
24) Another term for a statement of income and expense is __________ statement.
25) 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.
26) Goods or properties that have a dollar value, such as the medical practice building, bank accounts, office equipment, and accounts receivable, are called __________.
27) The process of communicating the income and expenses of a business and its financial health is known as __________.
28) A(n) __________ statement shows how much revenue is available to cover expenses, to invest, or to take as profit.
29) 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.
30) 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.
31) After receiving a check, immediately __________ it to prevent the check from being cashed if it is lost or stolen.
32) The process of keeping a daily log of the patient charges and payments received from patients each day is called __________.
33) A(n) __________ check states that it is void after a certain amount of time and is sometimes used for payroll.
34) A(n) __________ is a kind of certificate of guaranteed payment that can be purchased from banks and post offices and from some convenience stores.
35) 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.
36) One of the basic records of the single-entry system is the patient __________ cards, which show how much each patient owes.
37) The person to whom a check is written is the __________.
38) In order to be considered negotiable, a check must be signed by the __________.
39) The __________ system allows you to write each transaction once while recording it on four different accounting forms.
40) A(n) __________ gives a person the legal right to handle financial matters for another person who is unable to do so.
41) 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 __________.
42) 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.
43) __________, or watching for changes in disbursements, is important because it helps control expenses.
44) 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.
45) 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.
46) The part of the accounting process known as __________ is the systematic recording of business transactions.
47) 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.
48) Electronic bookkeeping systems contain built-in tax tables that calculate tax __________ for you.
49) The portion of a company's assets that are paid for is the company's __________.
50) The amount of money owed on a company asset is a(n) __________.
51) 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.
52) A(n) __________ banking system speeds up many banking tasks by performing calculations automatically.
53) When a practice's income exceeds its expenses, the practice has a(n) __________; this also is known as "being in the black."
54) When a practice's expenses exceed its income, the practice has a(n) __________; this also is known as "being in the red."
55) Payment by credit card for a medical practice __________.
A) decreases the cash flow in the office
B) increases the time spent on paperwork
C) requires extra staff to process credit card charges
D) provides prompt payment from the credit card company
E) increases the complexity of preparing statements
56) Which of the following is a diplomatic way to ask a patient for payment?
A) "I need $74 for today's visit."
B) "For today's visit, the total charge is $74. How would you like to pay?"
C) "That will be $74. What is your check number?"
D) "We need a $74 payment by cash, check, or credit card."
E) "You will need to pay the $74 you owe before you can see the provider."
57) 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?
A) $100
B) $95–$99
C) $90–$94
D) $86–$89
E) $82–$85
58) If a medical practice accepts credit card payments, the American Medical Association (AMA) suggests the use of which guideline?
A) Set the fees higher for patients who pay by credit card.
B) Do not encourage patients to use credit cards for payment.
C) Advertise outside the office that the practice accepts credit cards.
D) Allow only a select group of patients to use credit cards for payment.
E) Tell patients they may only use credit cards if they do not have cash.
59) If your medical practice does not have an authorization device for credit card payment, __________.
A) omit this step completely if you have seen the patient before
B) it is sufficient to imprint the credit card voucher with the patient's credit card
C) call the credit card company for authorization
D) insist that the patient pay by cash or check
E) ask the patient for verification that the payment will go through
60) 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?
A) Elena
B) Alan
C) Elena's mother
D) Elena's father
E) Alan's parents
61) The most appropriate way to determine which parent has consent ability and payment responsibility for a minor child is to __________.
A) ask the parent who is with the child at the time of the appointment who has financial responsibility
B) ask the parent who makes the appointment about financial responsibility before making the appointment
C) check with the court system to see who was awarded custody
D) assume that the parent who brings the child for treatment has consent ability and payment responsibility
E) require a letter from one of the parents guaranteeing payment
62) To which of the following patients would a medical provider most likely render treatment as a professional courtesy?
A) cancer patients
B) elderly patients
C) children
D) other healthcare professionals
E) any patient who cannot pay
63) Which of the following information should be included on a statement?
A) the patient's income
B) the balance from the previous month and an itemized list of charges
C) the patient's credit card information
D) the patient's occupation and place of employment
E) the provider's credentials
64) A superbill __________.
A) includes the charges and procedure codes for each service rendered on that day
B) is the original record of the provider’s services and charges for those services
C) bills each patient only once a month but spreads the work of billing over the month
D) is a signed agreement between the provider and the patient for payment
E) consists of a copy of the patient's ledger card that is mailed to the patient
65) When do most smaller practices send out their statements?
A) daily
B) weekly
C) at the end of the month
D) whenever the medical assistant has time to prepare the statements
E) patients are allowed to request a billing time that is convenient for them
66) A common billing system that bills each patient only once a month but spreads the work of billing over the month is __________.
A) using superbills
B) cycle billing
C) employing collection agencies
D) independent billing services
E) open-book accounting
67) Which of the following is true regarding a statement?
A) It is the usual fee a provider charges for a service.
B) It is paperwork sent to patients to inform them of payment or balance due.
C) It provides a price list for the medical practice.
D) It is a billing system that bills each patient once a month but staggers the due dates.
E) It provides a reminder from the medical office that the patient is due for a yearly exam.
68) An account that is open to charges made occasionally as needed is called a(n) __________.
A) single-entry account
B) open-book account
C) account payable
D) written-contract account
E) collection account
69) A written-contract account is __________.
A) one that is open to charges made occasionally
B) an account with only one charge
C) one in which the practitioner and patient sign an agreement for payment installments
D) the total of the outstanding balance on the patient ledger cards
E) one in which the practitioner is requested by the courts to examine a specific patient
70) 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) __________.
A) open-book account
B) single-entry account
C) account payable
D) written-contract account
E) collection account
71) Which of the following is an accurate statement about open-book accounts?
A) They are regulated by the Truth in Lending Act.
B) They are accounts with only one charge.
C) The patient and provider sign an agreement for payment in more than one installment.
D) The last date of payment or charge for each illness is used as the starting date for determining the time limit on that specific debt.
E) The statute of limitations does not apply to open-book accounts.
72) Most of a practitioner’s long-standing patients have which type of account?
A) single-entry account
B) accounts payable account
C) written-contract account
D) collection account
E) open-book account
73) Which of the following is appropriate when placing an initial call to a patient about collections?
A) Call the patient at work.
B) Assume that the patient forgot to pay or was temporarily unable to pay.
C) Ask the patient why the bill has not been paid.
D) Tell the patient that if payment is not received promptly, the account will be turned over to a collection agency.
E) Make the initial call if payment has not been received after 15 days.
74) An initial letter of inquiry is generally sent when an account is __________ days past due.
A) 15
B) 30
C) 60
D) 90
E) 120
75) 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.
A) 15
B) 30
C) 60
D) 90
E) 120
76) 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.
A) 15
B) 30
C) 60
D) 90
E) 120
77) 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.
A) 15
B) 30
C) 60
D) 90
E) 120
78) The process of classifying and reviewing past-due accounts from the first date of billing is a(n) __________.
A) invoice
B) age analysis
C) statement
D) superbill
E) collection letter.
79) Which of the following governs the methods that can be used to collect unpaid debts?
A) Truth in Lending Act
B) Fair Debt Collection Practices Act
C) Fair Credit Reporting Act
D) Telephone Consumer Protection Act
E) Equal Credit Opportunity Act
80) Which of the following also is called Public Law 95-109?
A) Fair Debt Collection Practices Act
B) Truth in Lending Act
C) Equal Credit Opportunity Act
D) Fair Credit Reporting Act
E) Telephone Consumer Protection Act
81) 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?
A) Fair Debt Collection Practices Act
B) Truth in Lending Act
C) Equal Credit Opportunity Act
D) Fair Credit Reporting Act
E) Telephone Consumer Protection Act
82) Which of the following requires debt collectors to treat debtors fairly and without collection tactics such as harassment, false statements, threats, and unfair practices?
A) Fair Debt Collection Practices Act
B) Truth in Lending Act
C) Equal Credit Opportunity Act
D) Fair Credit Reporting Act
E) Telephone Consumer Protection Act
83) Which of the following requires creditors to provide applicants with accurate and complete credit costs and terms?
A) Fair Debt Collection Practices Act
B) Truth in Lending Act
C) Equal Credit Opportunity Act
D) Fair Credit Reporting Act
E) Telephone Consumer Protection Act
84) Which of the following prevents creditors from discriminating against applicants on the basis of age, sex, race, religion, marital status, or income?
A) Fair Debt Collection Practices Act
B) Truth in Lending Act
C) Equal Credit Opportunity Act
D) Fair Credit Reporting Act
E) Telephone Consumer Protection Act
85) Which of the following is a guideline for making a call requesting payment from a patient?
A) Pose as a government official to convince the patient to pay.
B) Tell other people in the office about it and ask for suggestions.
C) Threaten to turn the account over to a collection agency, even if you do not plan to do so.
D) Call the patient after 8 a.m. or before 9 p.m.
E) Refuse to talk to anyone except the patient, not even the patient's attorney.
86) Which of the following protects telephone subscribers from unwanted telephone solicitations?
A) Fair Debt Collection Practices Act
B) Truth in Lending Act
C) Equal Credit Opportunity Act
D) Fair Credit Reporting Act
E) Telephone Consumer Protection Act
87) Which of the following should be a factor when you select an outside collection agency?
A) Select an agency that will use harsh collection practices.
B) Choose an agency only after a patient fails to respond to the final collection letter or has twice broken a promise to pay.
C) Encourage the agency to sue the patient.
D) Permit the agency to handle all cases, regardless of special considerations.
E) Continue to ask the patient for payment even though the collection agency is working on the account.
88) An accounts receivable policy __________.
A) collects payments for a provider who has a large number of patients who do not pay their bills
B) protects patients from being sued by the provider for failure to pay
C) decreases the provider's overall cash flow
D) ensures that the practice will have sufficient income to cover expected expenses
E) ensures that patients will have sufficient funds to pay for services
89) If a practitioner decides not to extend credit to a patient, what must be done according to the Fair Credit Reporting Act?
A) Call the patient and tell him his bill must be paid in full immediately.
B) Inform the patient in writing why credit was denied.
C) Explain to the patient that you will be unable to extend credit.
D) Avoid discussing the issue of credit with the patient to avoid embarrassment.
E) Report the patient's lack of creditworthiness to the state's credit monitoring service.
90) A written agreement of the terms of payment between the patient and the practitioner is a(n) __________.
A) credit statement
B) disclosure statement
C) superbill
D) statement of account
E) accounts receivable statement
91) A payment arrangement in which the provider 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) __________.
A) mutual agreement
B) written-contract agreement
C) open-book account
D) unilateral agreement
E) hardship agreement
92) A characteristic of a mutual agreement is that __________.
A) the patient is billed for payment in full monthly, but may make whatever payment is possible
B) it is never regulated by the Truth in Lending Act
C) the provider and the patient agree on how much each month's payment will be
D) finance charges are always applied
E) it is generally set up by a collection agency
93) Criteria for hardship cases include patients who __________.
A) refuse to pay the balance they owe
B) may be poor, underinsured, or elderly and on a limited income
C) have moved without leaving a forwarding address
D) have not received an invoice
E) receive professional courtesy from the medical office
94) An appropriate way to handle a patient relocation and address change is to __________.
A) stop trying to contact the patient after two unsuccessful tries
B) write off the charges as a hardship case
C) ask a third party for the patient's new address
D) turn the account over to a collection agency immediately
E) send a statement to the patient's relatives for payment
95) Which of the following information about a patient should a medical assistant provide to the collection agency?
A) patient's income
B) date of the last payment or charge on the account
C) patient's educational level
D) impression of the patient's ability to pay
E) names of other providers the patient has seen
96) When is it appropriate for a medical provider to assess finance charges or late charges on past-due accounts?
A) when the provider feels it is necessary
B) after the patient has ignored two bills
C) only when the patient is notified in advance
D) after the patient has verbalized a lack of intent to pay
E) after the account has been sent to a collection agency
97) Which of the following states that creditors may not discriminate against an applicant because he or she receives public assistance?
A) Equal Credit Opportunity Act
B) Fair Credit Reporting Act
C) Fair Debt Collection Practices Act
D) Truth in Lending Act
E) Telephone Consumer Protection Act
98) 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?
A) $100,000
B) $150,000
C) $250,000
D) 1/4% of the practice's net worth
E) up to $500,000 or 1% of the practice's net worth
99) 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 __________.
A) Medicaid
B) Medicare
C) a hardship case
D) a collection agency
E) county assistance
100) 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?
A) "I'm sorry, Mrs. Redding, but this card has expired. Do you have another card we might use?"
B) "Mrs. Redding, I can't use this card because it expired two months ago."
C) "Why are you trying to pay us with an expired credit card?"
D) "Mrs. Redding, this card has expired; would you like me to bill you instead?"
E) "If I put the charge through on this expired card, the credit card company will be furious."
101) 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?
A) Explain to Mrs. Patterson that she is still responsible because her daughter is a minor.
B) Ask for legal evidence that Kelly is an emancipated minor.
C) Require Kelly to pay the entire amount due.
D) Call Kelly's father to see if he will pay the bill.
E) Call Kelly's boyfriend and tell him that he is responsible for the bill.
102) 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 runs this clinic. He'll treat me for free." What should you do?
A) Require the woman to provide proof of insurance before being treated.
B) Write "professional courtesy" on the patient's chart.
C) Ask to see her identification to prove that she is the provider's daughter.
D) Send a statement for services to the provider's home address.
E) Check with the provider or office manager.
103) Which of the following accounts payable is typically the largest in a medical office?
A) payment for supplies and equipment
B) payroll
C) taxes owed to federal, state, and local agencies
D) licensing for physicians and staff
E) payment for practice-related products and services
104) Any payment the medical office makes for goods or services is called __________.
A) accounts receivable
B) a disbursement
C) a counter check
D) a limited check
E) a voucher check
105) One of the most common or numerous disbursements is payment for __________.
A) equipment
B) rent
C) office supplies
D) utilities
E) dues
106) What are business checks with stubs attached called?
A) counter checks
B) voucher checks
C) limited checks
D) traveler's checks
E) certified checks
107) A type of check that states it is void after a certain time limit is a __________ check.
A) voucher
B) cashier's
C) counter
D) traveler's
E) limited
108) Which type of check is usually used for payroll in the medical office?
A) voucher
B) limited
C) counter
D) cashier's
E) traveler's
109) Which type of check is purchased from a bank, written on the bank's own checking account, and signed by a bank official?
A) certified
B) traveler's
C) cashier's
D) voucher
E) counter
110) A standard personal or business check that the bank verifies and then sets aside the funds to guarantee payment is which type of check?
A) traveler's
B) voucher
C) limited
D) certified
E) counter
111) A special bank check that allows the depositor to withdraw funds from his or her account only is called a __________ check.
A) counter
B) certified
C) voucher
D) traveler's
E) limited
112) Which of the following checks are preprinted and might be used by a practitioner to pay for out-of-town conference expenses?
A) counter
B) certified
C) voucher
D) traveler's
E) limited
113) A practitioner may use a __________ check when he wants to withdraw money from the bank account but forgot his checkbook.
A) traveler's
B) voucher
C) limited
D) certified
E) counter
114) Which type of checks are preprinted in $10, $20, $50, and $100 denominations?
A) traveler's
B) voucher
C) limited
D) certified
E) counter
115) Which type of check would state "Pay to the Order of Myself Only"?
A) traveler's
B) voucher
C) limited
D) certified
E) counter
116) Today, a practice's financial summary is generally prepared by __________.
A) the provider
B) a senior accountant
C) practice management software
D) the practice's auditors
E) an attorney
117) Which of the following demonstrates the practice’s profitability?
A) tracking
B) statement of income and expense
C) cash flow statement
D) quarterly return
E) trial balance
118) Which of the following shows how much revenue is available to cover expenses, to invest, or to take as profit?
A) statement of income and expense
B) trial balance
C) tracking
D) cash flow statement
E) quarterly return
119) A medical provider or practice manager may periodically review which of the following reports to ensure accuracy of the books?
A) accounts receivable
B) trial balance
C) statement of income and expense
D) cash flow statement
E) quarterly return
120) Which of the following are usually components of a practice's accounting system?
A) employment contracts
B) daily log and disbursements journal
C) W-4 forms from all employees
D) a 401(k) plan
E) electronic health records
121) The process of communicating the income and expenses of a business and its financial health is known as __________.
A) bookkeeping
B) journalizing
C) accounting
D) reconciliation
E) endorsement
122) The part of the accounting process that consists of the systematic recording of business transactions is __________.
A) reconciliation
B) vouching
C) endorsement
D) bookkeeping
E) journalizing
123) Which of the following is not an advantage of using a computerized bookkeeping system?
A) Built-in tax tables calculate tax liabilities.
B) The computer performs repetitive tasks.
C) The computer performs mathematical calculations.
D) The bookkeeping system is available even if the power goes out.
E) The computer produces reports automatically.
124) Another term for a write-it-once system is __________ system.
A) voucher
B) electronic
C) journalizing
D) third-party
E) pegboard
125) A double-entry bookkeeping system is based on the principle that the company's assets are equal to __________.
A) capital minus its liabilities
B) liabilities minus its capital
C) assets plus its liabilities
D) assets minus its liabilities
E) capital plus its liabilities
126) The process of recording services provided, the fees charged, and payments received in a daily log is known as __________.
A) journalizing
B) endorsement
C) vouching
D) balancing
E) reconciling
127) At the beginning of each day, if you are using a pegboard system, what is the first thing you should put on the pegboard?
A) superbill
B) checks
C) daily log sheet
D) receipts
E) patient ledger cards
128) When you place a patient's ledger card on the pegboard, how should you position the card?
A) Align the ledger card's first blank line with the carbon strip under the next available superbill.
B) Align the top of the ledger card with the top of the daily log.
C) Align the bottom of the ledger card with the carbon strip under the next available superbill.
D) Align the top of the next available superbill with the top of the ledger card.
E) Align the right side of the ledger card with the right side of the superbill.
129) If you receive payment from a patient by mail after the office visit, you should record it __________.
A) on the daily log for the day of the patient's visit
B) on the patient's ledger card and the current day's daily log
C) directly onto the superbill
D) in the adjustment column
E) on the patient's ledger card only
130) When a patient has a credit balance, __________.
A) the account should be sent to a collection agency
B) a statement should be sent asking the patient to submit the balance
C) the practice can deduct the amount from the patient's account
D) the patient can be allowed to pay it at the next office visit
E) the practice owes the patient money
131) When the office manager or practitioner decides that an account is uncollectable, he or she will __________.
A) send the account to a collection agency
B) send the account to the state regulator's office
C) send one last notice to the patient to pay the amount due
D) adjust the amount due off the account
E) ask the patient to come to the office to discuss options
132) 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 __________.
A) memo line
B) routing number
C) ABA number
D) check number
E) MICR recording area
133) Which of the following is not a common type of endorsement?
A) restrictive endorsement
B) qualified endorsement
C) blank endorsement
D) mechanical endorsement
E) special endorsement
134) An endorsement that consists simply of the payee's signature is a __________.
A) restrictive endorsement
B) qualified endorsement
C) blank endorsement
D) mechanical endorsement
E) special endorsement
135) A third-party endorsement also is known as a __________.
A) restrictive endorsement
B) qualified endorsement
C) blank endorsement
D) mechanical endorsement
E) special endorsement
136) An endorsement that specifies precisely how the check may be redeemed, such as only for deposit in the practice's bank account, is a __________.
A) restrictive endorsement
B) qualified endorsement
C) blank endorsement
D) mechanical endorsement
E) special endorsement
137) 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 __________.
A) restrictive endorsement
B) qualified endorsement
C) blank endorsement
D) mechanical endorsement
E) special endorsement
138) 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?
A) Explain that office policy does not allow you to take third-party checks
B) Accept and record the check and give Charise $206 in change
C) Accept and record the check, but tell Charise that you cannot give her any change
D) Ask Charise to wait while you call her employer to confirm that the check is good
E) Tell Charise that she must pay cash for her visit
139) 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?
A) Explain that office policy allows you to accept only cash, check, or credit card.
B) Accept the money order and record it on the daily log and the patient's ledger card.
C) Complete the stub attached to the check and return the stub to Mr. Sanderson.
D) Ask Mr. Sanderson for a photo ID to prove that he purchased the money order.
E) Ask Mr. Sanderson to wait while you verify that the money order is valid.
140) The process of comparing the office financial records with the monthly statement from the bank is known as __________.
A) journalizing
B) reconciliation
C) endorsement
D) vouching
E) certifying
141) 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?
A) Adjust the practice records to match the bank's total.
B) Call the bank and inform them of the error on the statement.
C) Review each item on the statement against your records to find the $400 difference.
D) Inform the provider that the books do not balance this month.
E) Ask the office manager to call the auditor to review the books.
142) Which of the following statements is true about electronic banking?
A) The computer computes the new balance each time you record a check.
B) You will no longer be responsible for recording and depositing checks.
C) The computer used for banking must be locked up at the end of the day.
D) You must still reconcile the bank statement on paper.
E) Cash flow in the office becomes slower and more difficult.
143) The difference between the charge billed to the insurance carrier and the “allowed charge” that the payment is based on is call a/an __________.
A) adjustment
B) payment
C) credit
D) debit
144) Which of the following would not be necessary when receiving cash payments for healthcare services?
A) ask the patient for identification
B) give the patient a receipt or copy of the superbill
C) place it is a drawer or box
D) count it carefully
145) The fee a collection agency bills is a type of third-party __________
A) adjustment
B) charge
C) payment
D) debit
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Connected Book
Medical Assisting Admin 7e | Test Bank Booth
By Kathryn Booth, Leesa Whicker, Terri Wyma