Chapter#30 Accounts payable and Accounting Procedures

Total payments ÷ Total Charges=

Total expenses divided by total number of procedures for one month=

Charges that are deemed uncollectible by any business:

When an order comes in you do not have to ensure the invoice and the amount of each item has in fact been received.

In an office, the day to day bookkeeping tasks can be performed by the medical assistant

Which of the following is not a A/P?

Consumed, emptied, exhausted:

Total Expenses ÷ Number of Procedures for One Month=

Acquired material, property, or labor in exchange for money

The accounts receivable (A/R) ratio has a goal of:

Assets- liabilities=

A bank statement includes itemization of purchases provided together with the charges and terms of the agreement

Also known as A/P

A _______ form or expenditure list should be completed each time payment is made from the petty cash fund.

Daily balancing is an integral function of financial responsibilities in the practice

Invoices include the following except:

The study and analysis of financial data as it applies to operational issues within a company:

An analysis that allows for program evaluation

Also known as a “statement of financial position” reveals a company’s assets, liabilities and owner’s (net worth)

Records that reflect the status of the medical office or business.

Anything owned that has exchange value;

The _____ demonstrates the value of a business

Current A/R Balance divided by Average Monthly Gross Production=

A formula that determines how efficiently and timely an office is at collecting payment.

Allows for program evaluation by demonstrating whether the benefits received outweigh its costs

The two most common financial statements are the _______ statement and the balance sheet.

The trial balance is to provide a check that the debits equal the credits after posting.

There is a no time limit to notify vendor of any discrepancies on an invoice.

The two types of collection ratios are ____ collection ratio and net collection ratio

Total Payments ÷ (Total Charges, minus write-offs)=

All financial transactions of patient’s accounts are listed in:

The following are All required fields of an invoice: company details, invoice number, dates, , fees, and company email.

Includes the total payments (A/R) received by a practice for a specific period of time

A small amount of stored cash for change and small office expenses:

_______involves the entire process of identifying, recording, and communicating economic events.

The basis for all financial accounting is the accounting formula.