Medical Assisting chapters 19-20 practice test

Which of the following is the responsibility of the provider?
making sure providers receive education, training, and experience in diagnosis and treatment concerns


What is the name of the form given to Medicare patients explaining that the cost of a procedure is the responsibility of the patient?

Form when Medicare does not cover something?

advanced beneficiary notice (ABN)
After not receiving a payment from a patient for______ days, a collection notice is sent.
60 DAYS, Sixty
This notice is given to each medicare patient prior to their appointment:
Notice Of Non-Coverage
A new ____________ can be used when the previous days balances are forwarded :
day sheet
The ___________ is used to provide patient account activity for the day of service.
Charge Slip
The CMS assigns the __________ provider identifier:

What is the 10-digit code we use when billing patient?

National Provider Identifier (NPI)
Parent with ______________ custody is responsible for payment on Childs account.
At what time would you most likely get a patient on the phone?
between 5-8pm
In a conceare type of service, what do providers do?
overcharge when collecting fees
What is not required on a ABN form?
Total Cost not included on ABN form, only Estimated Cost
Which of the following is not a part of the pegboard system?
bank deposits
What is A Pegboard System? Advantages? What does it consist of?
write-it-once system, simplifies task, AVOIDS MISTAKES in patient accounts, inexpensive, provides COMPLETE and UP-TO-DATE INFORMATION about accounts receivable status at a glance.
ledger cards
encounter forms AKA charge slips
receipt forms
Which of the following is not a major advantage of the pegboard system?
complete up-to-date balance of accounts payable

Correct answer:
Accounts receivable

Which of the following is the most appropriate action of the medical assistant before using a new day sheet?
forward balances from previous day to next day
Which of the following is an appropriate action of the medical assistant when someone makes a payment on an account when services were NOT rendered?

*Receipt can be mailed to insurance company and patient

use the receipt form
What should a MA do when there is an overdue balance on patients account? Put in the right order:
1. itemized statement with overdue notice mailed
2. telephone call reminding Pt. of overdue account
3. prepare financial schedule
4. letter stating past due 3 months
5. letter stating account has been turned over to a collection agency.
Best describe Monthly billing:
it varies, devote one or two days a month for monthly billing (first, mid, end) printed in a few days, mailed out in a few days.
Which of the following is the most likely cause of the deposits not agreeing with the credits on the day sheet or the patient ledgers?
payment is misplaced
To help decrease __________ a medical practice should limit the use of a signature stamp.
Which of the following is not an advantage of a computerized system?
increased time to train personnel
When is the recommended time for deposits?
Which of the following is the type of endorsement that should be used in the ambulatory care setting?
Whcih type of check has a stub attached that is used to indicate date and invoice numbers?
voucher check
Which of the following is a primary advantage to the ambulatory care setting that accepts credit cards?
money is available withing 24 or so
Which of the following is the most appropriate action when balancing a petty cash account?
add an amount equal to that spent
Which of the following is used to reconcile a bank statement?
depositor’s checkbook
Which of the following would not be indicated on a bank statement?
time check was written
Which of the following applies to the cash that is usually kept in a locked change drawer and used for transactions with patients who pay in cash and need change?
cash on hand ( FOR PATIENTS)
What is the first rule when purchasing something?
purchase order, purchase order #
Which of the following is NOT a recommended rule in a manual bookkeeping system?
if a mistake is found, cover up by using white out
What can you find on a bank statement?
provides info on account for the month (not daily)
At times patients may not be able to pay their medical bills for various reasons. What can medical assistants do to assist them with this?
make financial arrangements with patients, allowing full payment for services provided, inform patients about charges, collect payments.
The patient’s check is returned for insufficient funds. Which of the following applies to the patient account balance after the amount of the NSF check is posted and an entry is made in the adjustment column?
account balance is increased
On the legercard, which column is used for entering payments?
credits column
Where do you insert collections on a ledgers column?
Charges column
Which of the following best describes accounts that occasionally go to an outside collection agency?
highly delinquent accounts
Which of the following must be documented in writing when there is an agreement between the provider and patient to pay in more than four installments?
finance charges
When you have to do an adjustment on a balance sheet what happens to the credit column?
Adjustment goes under credit column, which goes down because we don’t collect adjustments
Which collection technique is used as a last resort in the collection of unpaid balances?
sending to a collection agency
When collectin a payment from the patient, what is considered the best time?
at the time of service
What is the minimum ratio for collection of fees at the time of service recommended by management consultants?
Which of the following questions would not be helpful in developing a credit and collection policy?
what is the most convenient time of the month for patients to make a payment
Which of the following is not a common problem affecting collections?
Which of the following is a recommended method used to figure the accounts receivable ratio?
divide the current accounts receivable balance by the average monthly gross charges
Which of the following is used to guage the effectiveness of the ambulatory care setting’s billing practices?
collections ratio
Which of the following measures the speed with which outstanding accounts are paid?
accounts receivable ratio
Which of the following must collect the money from the patient if the medical office pursues payment through small claims court?
Which of the following must the collection of fees be directed to when a patient dies?
executor of estate
When can statements no longer be sent or any attempt made to collect a deinquent account?
when patient declares bankruptcy
Billing that occurs by dividing up all accounts alphabetically into groups and then sending them out at different times is known as what?
cycle billing
What is known as a method of identiying how long an account has been overdue?
aging account
Which of the following accounting systmes is based on the priciple that assets equals liabilities plus owner’s equity, requires time and skill, and provides a comprehensive financial picture with built-in accuracy controls?
double entry
Which of the following accounting systems utilizes “no carbon required” forms that are layered?
Which of the following accounting systems includes a daily journal or log, patients’ statements, ledgers, check, and disbursement records?
single entry
Which of the following best describes the accounting system that provides information primarily for entities external to the organization?
Which of the following best descrives a type of accounting that helps to detemine the finances necessary for the ambulatory care setting?
Which of the following applies to the financial report that shows cumulative monthly profit and loss?
income statement
Which of the following ratios is calculated by dividing total expenses by the total number of procedures for on month?
Which of the following applies to the accounting system in which outstanding accounts are paid for office expenses and services?
Which of the following is the recommended turnaround time of an efficient billing and collections policy?
two months or less
Which of the following is not a true stement about a computerized accounting system?
replaces all other systmens immediately
What is the common name for an employee withholding allowance certificate?
Which of the following bookkeeping and accounting systems includes charge slipes or encounter forms?
pegboard system
What is not considered part of the itemized balance sheet?
cost ratio
In medical practices, embezzlement can be decreases by doing all of the following except?
allow employees to use a signature stamp
What is created by totaling debit balances and credit balances to confirm that total debits equal total credits?
trial balance
What is accounts Receivable?
Money owed to the practice
What kind of check can a patient bring in if a check bounced?
Cashiers check