Chapter 24 Financial and Practice Management

Accounts Payable
Debts incurred and not yet paid
Accounts Receivable
Amounts owed to the physician
Accounts Receivable Trial Balance
A method of determining that the journal and the ledger are in balance
Accural Basis of Accounting
Method of accounting in which income is recorded when earned and expenses are recorded when incurred
Admonition
Counsel or warning against fault or oversight
Assets
The entire property of a person, association, corporation, or estate applicable or subject to the payment of debts
Balance Sheet
A financial statement for a specific date that shows the total assets, liabilities, and capital of the business
Bookkeping
The recording of business and accounting transactions
Cash Basis of Accounting
The method of accounting in which income is recorded when received and expenses are recorded when paid
Cash Flow Statement
A financial summary for a specific period that shows the beginning balance on hand, the receipts and disbursements during the period, and the balance on hand at the end of the period
Controls
A standard of comparison to make sure answers obtained are accurate
Disbursements Journal
A summary of accounts paid out
Entry
A record or notation of an occurrence, transaction or proceeding
Equities
The monetary value of a property or of an interest in a property in excess of claims or liens against it
In Balance
The state in which the total ending balances of patient ledgers equals the total of accounts receivable
Invoice
A paper describing a purchase and the amount due
Liabilities
Things that are owed; debts
Packing slip
An itemized list of articles included in a shipping package, giving the quantity and description of the package contents
Petty Cash Fund
A fund maintained to pay small, unpredictable cash expenditures
Statement
A request for payment
Statement of income and Expense
A summary of all income and expenses for a given period
Subsidiary
Supporting other documents or records
Trial Balance
A method of checking the accuracy of accounts
AR/AP
Stand for accounts receivable and accounts payable.
Daily Journal
Is the chronologic record of the practice.
-Day sheet is the daily journal in the pegboard system
Cash payment journal
In its simplest form is a record
Accounts receivable ledger
Provides information about the amounts owed to the physician.
General Journal
A record where transaction are entered. Ex. Day sheet
Disbursement journal must include the following?
Every amount paid out, date and check #, purpose of the payment.