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Medical Practice and Financial Management Quiz

Total questions: 90

Worksheet time: 1hrs 20mins

Name
Class
Date
1.

A medical practice is a business and must produce a profit.

a)

True

b)

False

2.

A charge slip is the original record of the doctors services and the charge for these services.

a)

True

b)

False

3.

A check from an insurance company includes payment for only one patient.

a)

True

b)

False

4.

The person who writes a check is called the payee.

a)

True

b)

False

5.

Power of attorney gives someone the legal right over financial matters for one who is too sick to do so.

a)

True

b)

False

6.

A bank will never accept a list of deposited items on something other than the bank provided deposit slip, even if the bank's deposit slip is attached.

a)

True

b)

False

7.

Reconciliation is usually performed once a month.

a)

True

b)

False

8.

When reviewing the electronic checkbook register, change any information that is not correct.

a)

True

b)

False

9.

The balance checkbook function electronically reconciles the monthly bank statement.

a)

True

b)

False

10.

Compounded interest is paid on the initial investment and on the interest earned on the investment.

a)

True

b)

False

11.

For employers, retirement plans can raise business taxes.

a)

True

b)

False

12.

The payer is the person who will receive the payment.

a)

True

b)

False

13.

Do not accept a third-party check unless it is from the health insurance company.

a)

True

b)

False

14.

Vesting means that you have a legal right to all the money in your account.

a)

True

b)

False

15.

If you terminate employment, you do not have to transfer or roll over the funds in your 401(k) account to an Individual Retirement Account.

a)

True

b)

False

16.

A daily log includes the patient's name, address, home and work telephone number, and the name of the person who is responsible for charges.

4 lines
17.

It is important to use the daily log sheet when organizing the practice's bookkeeping system.

a)

True

b)

False

18.

A lost bank deposit receipt could cost a medical practice thousands of dollars.

a)

True

b)

False

19.

Never accept a check marked payment in full unless it actually pays the complete outstanding balance.

a)

True

b)

False

20.

Paid vacations, paid holidays, and disability and life insurance are examples of employee benefits.

a)

True

b)

False

21.

Basic accounting involves managing accounts receivable and accounts payable.

a)

True

b)

False

22.

48. The Fair Labor Standards Act requires overtime payments for part time hourly employees for every hour worked beyond the normal eight hours in a day or 40 hours in a week.

4 lines
23.

49. The law requires all employers to withhold money from employees' net earnings to pay federal, state, and local income taxes.

4 lines
24.

50. Have all employees update their W-4 forms once year.

4 lines
25.

51. The percentage the employer pays for federal unemployment taxes decreases if the employer also pays state unemployment taxes.

4 lines
26.

52. The employee's gross earnings are his take home pay.

4 lines
27.

53. Net earnings – total deductions = gross earnings.

4 lines
28.

54. If your practice is not required to use EFT, you must submit employment taxes with a Federal Tax Deposit Coupon.

4 lines
29.

55. An employer must pay FUTA tax if employees' wages total more than $1500 in any quarter.

4 lines
30.

56. A Federal Unemployment Tax Return is also called Form W-4.

4 lines
31.

57. A common disbursement for a physician's office is payment for equipment.

4 lines
32.

58. When ordering supplies, it is better to buy too little and reorder more frequently than to buy too much.

4 lines
33.

59. If your office does only a few throat cultures a year, it makes more sense to send those patients elsewhere for the test than to stock the supplies required.

4 lines
34.

60. You may purchase holiday decorations from the petty cash fund.

4 lines
35.

61. All patient's financial accounts should be brought up to date

a)

daily

b)

weekly

c)

monthly

d)

at the time the patient is discharged

36.

62. Payments made by a patient represent the doctor's

a)

earnings

b)

income

c)

charges

d)

accounts receivable

37.

63. The patient's ledger card has the function of serving as

a)

a complete financial record of his charges, payments, and balance

b)

an itemized statement

c)

a record of all visits

d)

all of the above

38.

64. The Federal Communications Commission public notice governing the use of the telephone for collections prohibits

a)

calling at odd hours

b)

repeated calls to the debtor

c)

calls to employers

d)

all of the above

39.

65. FICA provides for which of the following:

a)

a. social security benefits

b)

b. unemployment compensation

c)

c. old age benefits

d)

d. workman's compensation

40.

66. The Employees Withholding Exemption certificate is also called

a)

a. W-2

b)

b. W-4

c)

c. FICA

d)

d. SS 20

41.

67. The amount of Social Security which is deducted from an employee's paycheck is based on

a)

a. the number of exemptions which are claimed

b)

b. a percentage of the gross pay

c)

c. income over 7,000.00 per year

d)

d. a flat amount for all employees

42.

68. The Employee's Withholding Exemption Certificate must be filled out by the

a)

a. employee

b)

b. employer

c)

c. internal revenue service

d)

d. state regulatory office

43.

69. The main source of communication between the doctor and the public is the

a)

a. newspaper

b)

b. the television

c)

c. the telephone

d)

d. the billboard

44.

70. An ABA number

a)

a. is issued to each of a bank's customers

b)

b. identifies a check and the bank it is written on

c)

c. is issued to all commercial accounts

d)

d. identifies only national banks

45.

71. A bank statement is reconciled with

a)

a. the depositor's check book

b)

b. the daily journal

c)

c. the accounts receivable

d)

d. the disbursement record

46.

72. The payee is not guaranteed payment if the check received is a

a)

a. personal check

b)

b. cashier's check

c)

c. traveler's check

d)

d. certified check

47.

73. The term CURRENT ASSETS often refers to

a)

a. financial obligations that mature in a short time

b)

b. a long term mortgage on a piece of property

c)

c. major medical equipment in the office

d)

d. assets that can be readily converted to cash

48.

74. Dollar entries made on the left side of the ledger are called

a)

a. past ref

b)

b. credits

c)

c. debits

d)

d. accruals

49.

75. An endorsement of a check appears as the

a)

a. name of the payee on the front of the check

b)

b. signature of the maker on the front of the check

c)

c. signature of the payee on the back of the check

d)

d. none of the above

50.

76. Any checks received for the doctor should be immediately

a)

a. deposited in the bank

b)

b. signed with a blank endorsement

c)

c. given a full endorsement

d)

d. given a restrictive endorsement

51.

77. All disbursements, regardless of purpose, should be

a)

a. made in cash

b)

b. made by check

c)

c. made from petty cash

d)

d. entered on the day sheet

52.

78. A rubber stamp may be used for

a)

a. blank endorsements

b)

b. fill-in endorsements

c)

c. restrictive endorsements

d)

d. partial endorsements

53.

79. The fee a doctor most frequently charges for a given procedure is called

a)

a. usual fee

b)

b. customary fee

c)

c. reasonable fee

d)

d. UCR fee

54.

80. The patient's ledger should be kept

a)

a. with the patient's folder

b)

b. in a separate ledger file

c)

c. with the general ledger

d)

d. in a job cost ledger

55.

81. An employee payroll sheet is also termed as a

a)

a. cost sheet

b)

b. payroll register

c)

c. W-4

d)

d. compensation record

56.

82. The process of recording all the details of a transaction in the daily journal before an entry is made in the general ledger is known as

a)

a. journalizing

b)

b. posting

c)

c. footing

d)

d. crediting

57.

83. The basic forms which comprise the pegboard bookkeeping system are

a)

a. daybook sheet, patient ledger card, and charge slip

b)

b. daybook sheet and charge slip

c)

c. patient ledger card and patient's bill

d)

d. journal and daily disbursements

58.

84. Pegboard posting is often referred to as which of the following systems?

a)

a. trial balance

b)

b. basic

c)

c. daily accounting

d)

d. write it once

59.

85. Business reply mail is an example of

a)

a. first class mail

b)

b. second class mail

c)

c. third class mail

d)

d. fourth class mail

60.

86. Newspapers and periodicals are sent by

a)

a. first class mail

b)

b. second class mail

c)

c. third class mail

d)

d. fourth class mail

61.

87. First class mail with valuable contents should be sent

a)

a. certified mail

b)

b. air mail

c)

c. insured mail

d)

d. registered mail

62.

88. Packages and printed matter weighing more than 16 ounces are sent by

a)

a. second class mail

b)

b. third class mail

c)

c. fourth class mail

d)

d. first class mail

63.

89. Fourth class mail is also known as

a)

a. registered mail

b)

b. parcel post

c)

c. insured mail

d)

d. special handling

64.

90. The least expensive way of shipping heavy and bulky goods is by

a)

a. express

b)

b. parcel post

c)

c. freight

d)

d. truck

65.

91. The straight telegram is a message of

a)

a. 10 words

b)

b. 15 words

c)

c. 25 words

d)

d. 50 words

66.

92. How often is the physician's narcotic license renewed?

a)

a. annually

b)

b. every 3 years

c)

c. every 5 years

d)

d. never

67.

93. If a patient who has complained of chest pain collapses in the office

a)

a. immediately begin chest compressions

b)

b. be sure the patient is breathless and pulseless before administering CPR

c)

c. call an ambulance

d)

d. check the patient's chart to see what medication the patient is taking

68.

94. A patient calls in to the office and states they have received a blunt injury to the eye. You should advise to

a)

a. do nothing unless the eye is very swollen

b)

b. apply heat

c)

c. come in as soon as possible to have the eye checked

d)

d. rub the eye to be sure there is nothing in it

69.

95. The balancing of the monthly bank statement with the checkbook is referred to as

a)

a. monthly balancing

b)

b. check posting

c)

c. reconciling the bank statement

d)

d. statement certifying

70.

96. An aging of the accounts receivable analysis

a)

a. is shown on the trial balance

b)

b. is a list of payments and charges for a given day

c)

c. is used to identify collection problems

d)

d. none of the above

71.

97. All payments received are referred to as

a)

a. accounts payable

b)

b. gross income

c)

c. petty cash

d)

d. none of the above

72.

98. A system in which the money charged is not considered income until the money is received is called

a)

a. double entry

b)

b. single entry

c)

c. accrual basis

d)

d. ledger or ledger card

73.

99. A patient's financial account is referred to as

a)

a. charge slip

b)

b. monthly statement

c)

c. income slip

d)

d. ledger or ledger card

74.

100. On the ledger card, the adjustment column is used for

a)

a. check marks

b)

b. credit balances

c)

c. refunds or charge corrections

d)

d. none of the above

75.

101. A listing of specific services rendered and fees charged is an

a)

a. itemized statement

b)

b. day sheet

c)

c. control sheet

d)

d. invoice

76.

102. Deductions are subtracted from what source when computing payroll

a)

a. net earnings

b)

b. income tax

c)

c. payroll tax

d)

d. none of the above

77.

103. A check dated two months from today's date is considered

a)

a. insufficient

b)

b. overdue

c)

c. postdated

d)

d. pre-dated

78.

What is the latest date an employer may give the W-2 form

a)

a. bi-weekly

b)

b. January 15

c)

c. January 31

d)

d. none of the above

79.

What form is the physician required, by the IRS, to complete every three months for FICA income tax?

a)

a. W-2

b)

b. 941

c)

c. 1040

d)

d. 1050

80.

Major medical equipment such as X-RAY machines are known as

a)

a. asset expense

b)

b. fixed assets or capital equipment

c)

c. intangible assets

d)

d. none of the above

81.

When a patient must cancel an appointment, you should

a)

a. reprimand the patient

b)

b. express regret

c)

c. immediately offer a new appointment

d)

d. none of the above

82.

One way to prevent patients from forgetting future appointments is

a)

a. call them the day before their appointment

b)

b. do not book more than two weeks in advance

c)

c. use appointment cards

d)

d. all of the above

83.

What should be avoided by the medical assistant

a)

a. giving medical advice

b)

b. arguing with the patient

c)

c. discussing the patient's condition

d)

d. all of the above

84.

When one encounters a baffling term, you should

a)

a. try to pronounce it

b)

b. ask a co-worker

c)

c. consult a dictionary

d)

d. write it down several times

85.

The first way to communicate courtesy to the telephone caller is to

a)

a. put them on hold

b)

b. answer promptly and identify yourself

c)

c. excuse yourself if you must put the person on hold

d)

d. none of the above

86.

The behavior pattern of a person who is ill may be changed by a medical assistant that has an attitude which reflects

a)

a. friendliness

b)

b. reassurance

c)

c. understanding

d)

d. all of the above

87.

Since the medical assistant's day is filled with interpersonal contacts, it is necessary to

a)

a. be well groomed

b)

b. be prepared to handle emergencies

c)

c. be understanding

d)

d. all of the above

88.

When dealing with irritable patients, the medical assistant should

a)

a. counter a rude remark with one of their own

b)

b. establish a friendly atmosphere

c)

c. keep quiet

d)

d. none of the above

89.

A good working relationship between the doctor and the assistant will be enhanced if he/she

a)

a. insists on regularly timed lunch hours

b)

b. addresses the doctor by his first name

c)

c. studies the doctor's ways of doing things and tries to anticipate his/her needs

d)

d. none of the above

90.

The medical assistant should maintain pleasant public relations by

a)

a. being diplomatic

b)

b. listening carefully

c)

c. explaining delays

d)

d. all of the above