Bookkeeping 1
The "cash basis" system of accounting used by most physicians means that
Charges are recorded as income at the time they are received.
True or False?
In the physician's office, the accounts payable is the amount of money that all patients owe the physician.
False
Name three special bookkeeping entries.
Credit balances
Third-party payments
Refunds
True or False?
Many healthcare facilities find small claims court a satisfactory, inexpensive means of collecting delinquent accounts.
Parties to small claims actions are represented by an attorney at the hearing but may also send another person to court on their behalf to produce records supporting the claim.
The first statement is true.
The second statement is false.
Who is financially responsible for a minor seeking treatment for an STD without parental consent?
It depends; the medical assistant must determine where the statement should be sent.
Federal regulations state, minors cannot be held financially responsible for a bill unless they are emancipated. If consent has been given by a parent or guardian, the bill would be sent to the parent or guardian who brings the minor in for treatment.
It's a tricky situation.
True or False?
Accounts receivable are monies that are expected but not yet received.
All invoices, statements, and operational expenses are included in accounts receivable.
The first statement is true; the second statement is false.
The recording of business and accounting transactions is called ____________.
bookkeeping
This range of account aging requires a final demand letter before the account is turned over to a collection agency.
90-120 days
What is something that should be considered when using a collection agency?
net back
The entire property of a person is said to be his or her __________.
assets
What is the relationship between bookkeeping and accounting?
Accounting is a summary of the activities of bookkeeping.
Amounts owed to the physician are accounts ______.
receivable
The STARK law imposes restrictions on
professional courtesy
Name two things that need to occur when a check is returned from the bank for NSF?
The payment posted to the patient account must be reversed.
A charge line item must be added with the amount of the NSF check.
Name four things that must occur when a provider agrees to settle for a reduced fee?
Negotiations without prejudice
Offer discount in writing
Define the time limit for making payment
Make two copies of the agreement with witness signatures
A system of recording, classifying, and summarizing financial transactions.
Accounting
Accounts _______ are debts incurred but not yet paid.
payable
If not handled properly, what can decrease what is owed to the provider erroneously?
Credit balances and refunds
What is the most successful collection strategy?
Telephone call
True or False?
The purpose of the trial balance is to disclose any discrepancies between the journal and the ledger.
True
True or False?
Payments to the healthcare facility come as reimbursement from the insurance company only.
Adjustments are made to a patient's account when it is necessary to add or subtract a patient payment from the balance.
Both statements are true.
To estimate the budget for a new year, the practice should evaluate expenses from the _________ year.
previous
No specific agreement with more than four installments and no finance charge.
When tracing "skips," what is something that is strictly forbidden by law?
Communicating with a third party more than once.
A record or notation of a transaction is called a(n) _____.
entry