Chap 23
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Created by:
MedAsstKim on February 19, 2012
Subjects:
Banking Service and Procedures
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84 terms
Terms | Definitions |
|---|---|
 When shouold the payment received in the medical office de deposited?? | ASAP, ideally on the same day |
| What is online banking? | a means of performing banking services via the internet |
| With basic services, a customer usually can do the following?? | -check acct balances -transfer funds btwn accts -pay bills electronically -determine whether a check has cleared the bank -download acct information -view images of transactions |
| What are the advantages of e-banking?? | -ability to bank at one's own convenience at home or office -convenient and comprehensive method of money management -ease of use -portability -availability |
| What are the disadvantages of e-banking?? | -learning to navigate the software -service options are often more limited |
| When is online banking available?? | 24 hrs a day, 7 days a wk |
| Why is costly fees for financial transactions left until the last min can be avoided?? | online transactions can be accomplished in a matter of seconds |
| Define Check?? | a bank draft or order to pay a certain sum of money payable on demand to a specified person of entity |
| A check is considered a what?? | negotiable instrument |
| For a check to be negotiable , it must what?? | -be written and signed by a maker -contain a promise or order to pay a sum of money -be payable on demand or at a fixed future date -be payable to order or bearer |
| Debit cards are connected to what?? | checking acct |
| What is a bank draft?? | a check drawn by a bank against funds deposited to its acct in another bank |
| What is a cashier's check?? | a banks own check drawn on itself and signed by the bank cashier or other authorized official |
| Cashier's checks are also known as what?? | officer's or treasurer's check |
| What is a limited check?? | a check may be limited in the amount written on it and the time during which it may be presented for payment |
| When does limited checks are used?? | for payroll or insurance checks |
| Domestic money orders are sold by whom?? | banks, some stores, and the U.S. postal service |
| Money orders are often used for what?? | pay bills by mail |
| What is a traveler's check?? | are designed for people who are traveling, because personal checks may not be accepted or carrying a large amount of cash might be inadvisable |
| Traveler's check requires what?? | two signatures from the purchaser, and one at the time of purchase and the other at the time of use |
| Online banking is also called what? | elecstronic banking |
| what is the # 1 reason ppl and businesses use the internet for financial services?? | convenience |
| financial transactions dates bk as far as what?? | roman empire |
| what is assigned to a card for cas withdrawal and point of sale (POS) purchases?? | pin number |
| What is traveler's checks designed for?? | for ppl that are traveling |
| What are sum advantages of using debit cards?? | -debit cards are both safe and convenient, particularly for making payments online -if stolen or lost, the card can be voided quickly with a minimum liabilit |
| What is a voucher portion is used for?? | to itemize or specify the purpose for which the check is drawn |
| Congress created the federal reserve in 1993 as the central bank for the US how many memebers does it consists of?? | seven and twelve |
| Where does the American bankers association (ABA) number appears in the upper right area of a printed check; what is this number for?? | of identifying the area location of the bank |
| The part of the number following the hypen is what?/ | a number issued to each bank for its own identification purposes |
| The holder is what?? | the person presenting the check for payment |
| Checks received by the bank are turned over the daily to whom , which cancels each one by stamping, mechanically punching, or embossing them?? | clearinghouse |
| Who keeps the cancel checks?? | financial institution or returned to the drawer |
| Characters and numbers printed in _______ are found at the _______ of the check?? | magnetic ink, bottom |
| What are the three common type of accts?? | checking, savings,money market savings |
| A physician often requires three different checking accts...what are them?? | -an acct for personal and family expenses -a separate checking acct for office expenses -a high-yeild, interest-bearing acct for funds reserved for paying insurance premiums, property taxes, and other seasonal expense |
| What is a interest?? | a charge (or payment) in exchange for the use of money; it usually is figured as a percentage of the principal |
| Simple interest is computed how?? | annually |
| An insured money market savings acct requires what?? | a minimum balance, anywhere from $500 to $5,000; it draws interest at money market rates |
| Some of the services available for business accts are what?? | -business checking with interest, accruing interest with either checking or savings acct -free checks and deposits with a maintained minimum balance -overdraft protection by linking the acct to a savings acct or to a bank-issued credit or debit card -online banking |
| How helpful is a one-write system of writing checks can be?? | it save time and minimize errors in medical office disbursements |
| An office with a pegboard bookkeeping system may want to include what?? | one-write checking writing |
| What is establishing a bill-paying system?? | establish a systemic plan for writing checks and paying bills |
| What should be done before writing a check?? | fill in the info on the check stub |
| One method of handing accts payable is to create what?? | a chronologic tickler file with dividers for each pay cycle |
| What is usually located at the top of the document that you should check when each invoice is received?? | Terms |
| A few vendors offer what if bills are paid within a shorter time?? | 1% to 2% discount |
| If the terms say "Net 30," this means what?? | the total amount of the bill is due within 30 days |
| What are sum examples of automatic withdrawals?? | some routine bills that are due monthly or on a regular billing cycle, such as insurance premiums, rent payments, and utility bills |
| Define writing checks?? | a routine and basically simple function; however, certain guidelines should be followed to prevent potential problems |
| Define check stub?? | the part that remains in the book after the check has been written and removed |
| The check stub is the depositor's what?? | own record of checks written; the date, amount, payee, and purpose |
| When can the acct be balanced, and the amount on hand be determined?? | until the cleared check shows up online or on the monthly bank statement |
| When should the MA is required to sign a signature card at the bank?? | before writing any checks on the business acct |
| What should you not do on a check?? | cross out, erase, or change any part of a check |
| Checks are printed on what type of paper and why?? | sensitized paper, so that erasures are easily noticeable, and the bank has the right to refuse to pay on any check that has been altered |
| When should stop-payment should be used?? | when absolutely necessary; as with overdrafts most banks charge a fee for them |
| What are sum reason for stop-payment?? | -loss of a check -disagreement about a purchase -disagreement about a payment |
| When should you accept a third-party check?? | never |
| what are sum guidelines for accepting checks?? | -scan the check carefully for the correct date, amount, and signature -do not accept a check with corrections on it -do not accept a check marked |
| If a check is stamped "NSF" when and who should you contact?? | The Maker Immediately |
| If the maker cannot not be contact due to a NSF check what should you do next? | track down all leads, such as referrals, numbers obtained from credit cards, driver's license |
| What is a endorsement?/ | a signature plus any other writing on the back of a check by which the endorser transfers all rights in the check to another party |
| The name of the last endorser of the check shows what?? | who last receive the money |
| What are four type of endorsements?? | -Blank -Restrictive -Special -Qualified |
| What is a blank endorsement?? | the payee signs only his or her name |
| What is a restrictive endorsement?? | that specifies the purpose of the endorsement. its used in preparing checks for deposit to the physician's checking acct |
| What does a Special endorsement includes?? | specifying the person to whom the endorser makes the check payable |
| Describe a qualified endorsement?? | usually the words "without recourse" are written above by an attorney who accepts a check on behalf of a client but who has no personal claim in the transaction |
| As checks from pts and other sources arrive, they should be recorded in the ledger when and stamped with the restrictive endorsement?? | immediately, "For Deposit Only" |
| What are the MA financil duties?? | depositing checks and reconciling the bank statements with the checkbook |
| What are the procedures to prepare a deposit slip?? | -list all checks on the back of the deposit slip -transfer the total to the front of the slip -enter the amount of the total deposit on the deposit slip stub |
| Money orders, whether postal, express, or others, are identified how?? | "PO Money Oders" or Express MO" |
| What are the componet of the stub?? | date, name of payee, amount of the check, the new balance to be carried forward, and usually the purpose of the check |
| What is a direct deposit?/ | a plan in which payments are transferred, usually electronically, by a paying agency directly into the acct of a recipient |
| What does a bank statement indicates?? | -beginning balance -deposits received -checks paid -bank charges -ending balance |
| Whats another name for online statements?? | e-statements |
| The bank statement balance and the customers checkbook balance usually is what? | differ |
| What is the reconciliation?/ | discloses any errors that may exist in the checkbook or, on rare occasions, in the bank statement |
| What questions to ask when searching for a possible error?? | -is your arithmetic correct -did you forget to include one of the outstanding checks -did you fail to record a deposit or did you record one twice |
| What to do if the checkbook balance and the statement balance do not agree?/ | -match the bank statement entries with the checkbook entries -review deposit slips and transactions against the day sheet and read all columns |
| When an acct is first opened at a banking facility, what is requried from the depositor?? | affix his or her handwritten signature to a card, which is kept on file at the bank |
| Why does physicians purchase fidelity bonds?/ | to protect their business establishments from embezzolement or other financial loss caused by employees who handle large sums of money |
| What are three types of bonding?? | -position-schedule bonding -blanket-position bonding (COVERS ALL EMPLOYEES) -personal bonding |
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