Which of the following statements about double-entry bookkeeping is NOT true?
It has checks and balances
It is expensive
It requires skill
It is accurate
It requires more time
A bookkeeping term synonymous with "debit" is
charge
discount
adjustment
balance
receipt
The one-write system of check writing is a feature of
single-entry bookkeeping
double-entry bookkeeping
pegboard bookkeeping
savings and loan accounts
checking accounts
The individual record of the amounts owed and pid by each patient is ound in the
combined journal
general ledger
day book (daily journal)
patient's ledger
worksheet
Posting to the patients' ledger and to the combined journal is made from the
special journal
trial balance
The process of transferring an amount from one record, such as a journal, to another record, such as a ledger, is called
debiting
crediting
posting
extension
verification
The word "debit" means
add
subtract
debt
right
total
Owners' equity is a term used intercchangeaable with
proprietorship
liability
professional income
an asset
income statementn
A daily journal is where
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
A liability is
An expense
opposite of credit
recorded in the left column
a debit
all of these
The credit column in an accounting system is always
the accounting base
recorded in the right column
payments from the practice for expenses
the patient's account due
Receipts are
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
An accounts receivable ledger consists of
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
The cash basis accounting system
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
A depositor's own check that is guaranteed by the bank is called a
bank draft
certified check
counter check
limited check
cashier's check
The accounts receivable trial balance is a/an
annual summary
daily summary
monthly summary
weekly statement
income taax preliminary
The most active financial record in the medical office is the
general journal
cash payment journal
accounts receivable ledger
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?
daily log
day book
day sheet
charge journal
accrual accounting system
The cash and checks taken as payments for professional services rendered are called
payables
disbursements
receivables
receipts
discounts
Payments made by patients are regarded as the physician's
earnings
gross income
drawing
equity
Collection agencies may retain up to _____% of the account collected on an overdue medical bill
70 to 80
40 to 60
20 to 30
10 to 25
5 to 15
Billing statements to the patients and the patients' insurance company are made from the
Regulation Z of the Truth in Lnding Act applies to physicians who accept payment from patients
in cash
in two installents
in more than four installments
in six or more installments
with credit cards
Statues of limitations vary from one state to another and may range from
2 to 8 years
3 to 8 years
4 to 7 years
5 to 7 years
6 to 9 years
Another term meaning "payroll register" is
payroll journal
payroll check
employee's earnings record
patient ledger
financial record
The collecction percentage is obtained for a given period of time by dividing
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
A list of accounts showing the title and balance of each account is called a/an
income statement
balance sheet
ledger
chart of accounts
Which of the following equattions is correct?
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
