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Quiz on Chapter 5: Bookkeeping, Credits, and Collections, created by carrieleekennedy on 24/08/2014.

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Chapter 5: Bookkeeping, Credits, and Collections

Question 1 of 28

1

Which of the following statements about double-entry bookkeeping is NOT true?

Select one of the following:

  • It has checks and balances

  • It is expensive

  • It requires skill

  • It is accurate

  • It requires more time

Explanation

Question 2 of 28

1

A bookkeeping term synonymous with "debit" is

Select one of the following:

  • charge

  • discount

  • adjustment

  • balance

  • receipt

Explanation

Question 3 of 28

1

The one-write system of check writing is a feature of

Select one of the following:

  • single-entry bookkeeping

  • double-entry bookkeeping

  • pegboard bookkeeping

  • savings and loan accounts

  • checking accounts

Explanation

Question 4 of 28

1

The individual record of the amounts owed and pid by each patient is ound in the

Select one of the following:

  • combined journal

  • general ledger

  • day book (daily journal)

  • patient's ledger

  • worksheet

Explanation

Question 5 of 28

1

Posting to the patients' ledger and to the combined journal is made from the

Select one of the following:

  • day book (daily journal)

  • general ledger

  • special journal

  • trial balance

  • worksheet

Explanation

Question 6 of 28

1

The process of transferring an amount from one record, such as a journal, to another record, such as a ledger, is called

Select one of the following:

  • debiting

  • crediting

  • posting

  • extension

  • verification

Explanation

Question 7 of 28

1

The word "debit" means

Select one of the following:

  • add

  • subtract

  • debt

  • right

  • total

Explanation

Question 8 of 28

1

Owners' equity is a term used intercchangeaable with

Select one of the following:

  • proprietorship

  • liability

  • professional income

  • an asset

  • income statementn

Explanation

Question 9 of 28

1

A daily journal is where

Select one of the following:

  • source documents are recorded

  • items from the general ledger are tranferred

  • financial statements originate

  • the trial balance is erived

  • the petty cash account is credited

Explanation

Question 10 of 28

1

A liability is

Select one of the following:

  • An expense

  • opposite of credit

  • recorded in the left column

  • a debit

  • all of these

Explanation

Question 11 of 28

1

The credit column in an accounting system is always

Select one of the following:

  • the accounting base

  • recorded in the left column

  • recorded in the right column

  • payments from the practice for expenses

  • the patient's account due

Explanation

Question 12 of 28

1

Receipts are

Select one of the following:

  • amounts transferred from one account to another

  • records of patients' financial accounts

  • the difference between the debit and credit columns

  • payment for professional services

  • daily bank deposits from practice

Explanation

Question 13 of 28

1

An accounts receivable ledger consists of

Select one of the following:

  • a book of original entry

  • a payment for professional services

  • records of patients' current financil status

  • a journal of disbursements

  • exenses owed by the practice

Explanation

Question 14 of 28

1

The cash basis accounting system

Select one of the following:

  • is the same as the accrual basis

  • uses the formula, income = payment received

  • is used by merchants

  • is recorded in the left column

  • is the difference between debit and credit columns

Explanation

Question 15 of 28

1

A depositor's own check that is guaranteed by the bank is called a

Select one of the following:

  • bank draft

  • certified check

  • counter check

  • limited check

  • cashier's check

Explanation

Question 16 of 28

1

The accounts receivable trial balance is a/an

Select one of the following:

  • annual summary

  • daily summary

  • monthly summary

  • weekly statement

  • income taax preliminary

Explanation

Question 17 of 28

1

The most active financial record in the medical office is the

Select one of the following:

  • general journal

  • worksheet

  • cash payment journal

  • accounts receivable ledger

  • trial balance

Explanation

Question 18 of 28

1

The general journal, which is a record of the physician's practice, includes records of services rendered, carges make, and monies received. The general journal may be known by several other names. Which of the following is NOT another name for the general journal?

Select one of the following:

  • daily log

  • day book

  • day sheet

  • charge journal

  • accrual accounting system

Explanation

Question 19 of 28

1

The cash and checks taken as payments for professional services rendered are called

Select one of the following:

  • payables

  • disbursements

  • receivables

  • receipts

  • discounts

Explanation

Question 20 of 28

1

Payments made by patients are regarded as the physician's

Select one of the following:

  • earnings

  • gross income

  • drawing

  • proprietorship

  • equity

Explanation

Question 21 of 28

1

Collection agencies may retain up to _____% of the account collected on an overdue medical bill

Select one of the following:

  • 70 to 80

  • 40 to 60

  • 20 to 30

  • 10 to 25

  • 5 to 15

Explanation

Question 22 of 28

1

Billing statements to the patients and the patients' insurance company are made from the

Select one of the following:

  • general journal

  • worksheet

  • cash payment journal

  • accounts receivable ledger

  • trial balance

Explanation

Question 23 of 28

1

Regulation Z of the Truth in Lnding Act applies to physicians who accept payment from patients

Select one of the following:

  • in cash

  • in two installents

  • in more than four installments

  • in six or more installments

  • with credit cards

Explanation

Question 24 of 28

1

Statues of limitations vary from one state to another and may range from

Select one of the following:

  • 2 to 8 years

  • 3 to 8 years

  • 4 to 7 years

  • 5 to 7 years

  • 6 to 9 years

Explanation

Question 25 of 28

1

Another term meaning "payroll register" is

Select one of the following:

  • payroll journal

  • payroll check

  • employee's earnings record

  • patient ledger

  • financial record

Explanation

Question 26 of 28

1

The collecction percentage is obtained for a given period of time by dividing

Select one of the following:

  • accounts receivable by amount collected

  • amount collected by accounts receivable

  • accounts receivable by total charges for all services

  • total charges for all services by acconts receivable

  • numer of accounts receivable by total number of patients

Explanation

Question 27 of 28

1

A list of accounts showing the title and balance of each account is called a/an

Select one of the following:

  • income statement

  • balance sheet

  • trial balance

  • ledger

  • chart of accounts

Explanation

Question 28 of 28

1

Which of the following equattions is correct?

Select one of the following:

  • asets plus liabilities equals proprietorship

  • assets plus proprietorship equals liabilities

  • assets equals liabilities plus proprietorship (owner equity)

  • assets equals liabilities minus proprietorship

  • assets equals proprietorship minus liabilities

Explanation

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