Chapter 31 Accounts, Collects and Banking

    Master this deck with 23 terms through effective study methods.

    Generated from text input

    Created by @meli

    What is bookkeeping?

    Recording daily transactions of a business.

    What defines single-entry bookkeeping?

    Tracks revenue and expenses with one entry per transaction.

    What is double-entry bookkeeping?

    Requires two entries for each transaction: a debit and a credit.

    What is a patient account?

    A running balance of all financial transactions for a specific patient.

    What happens if expenses exceed fees collected in a healthcare facility?

    The business may be forced to close.

    What is an adjustment in financial terms?

    A credit or debit modification on an account.

    How does a credit adjustment affect a patient’s balance?

    It reduces the amount owed by the patient.

    What is the purpose of a balance statement?

    Shows assets, liabilities, and equity at a specific time.

    What is cash flow?

    Movement of cash into and out of the healthcare facility.

    What is the role of a medical assistant in financial management?

    Posting charges, payments, and adjustments.

    What is the pegboard system?

    A manual bookkeeping system using physical ledger cards.

    What distinguishes accounts receivable from accounts payable?

    A/R is money owed to the business; A/P is money the business owes.

    What is the significance of the Truth in Lending Act?

    Regulates credit agreements when payments exceed four installments.

    What is a credit balance?

    Occurs when a patient has overpaid or paid in advance.

    What is the Fair Debt Collection Practices Act?

    Regulates how debts can be collected to prevent abuse.

    What is the purpose of a monthly patient account statement?

    Informs patients of their balance and payment history.

    What happens during a bank reconciliation?

    Ensures the bank statement matches the accounting records.

    What is the role of a fidelity bond?

    Protects against losses from employee fraud.

    What is the difference between a personal check and a cashier's check?

    A personal check is drawn against an individual's account; a cashier's check is issued by the bank.

    What is the purpose of a stop-payment order?

    Prevents a check from being cashed or deposited.

    What is the significance of the signature card at a bank?

    Verifies the identity of the account holder for check processing.

    What is the purpose of petty cash?

    Covers small, miscellaneous expenses without formal payment methods.

    What is the consequence of issuing a check without sufficient funds?

    The check will bounce, incurring fees.