Fundamentals of Accounting: Note set
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52 terms
Terms | Definitions |
|---|---|
 Charge Slip | This offers a way to track patient procedures, charges and payments during the patient visit. |
| Patient Name, DOS (date of service), procedures, charges and amount paid | What 5 things are typically listed on a charge slip? |
| Superbill | A charge slip which also includes procedure and diagnosis codes. |
| Day Sheet | A daily recording of all transactions |
| Charge slip/fee schedule (superbill), accounts receivable ledger for each patient, day sheet, cumulative record of monthly financial activity for the individual patients and the practice as a whole. | Which 4 methods might you use if you were maintaining accounts receivable through a manual system? |
| Fee Schedule | A list of charges for each procedure a chiropractor performs. |
| True | True or False: within a computer system, fees can be linked to procedure codes. |
| True | True or False: Most billing software can link fees to varied insurance schedules. |
| False | True or False: a computerized system maintains different records than a manual system would. |
| True | True or False: A computer system can file a claim electronically or generate a 1500 claim form for insurance billing purposes. |
| False | True or False: While using a computer system eases some tasks, you will still have to write receipts and day sheets by hand. |
| Patient's accounts receivable ledger | Where the computer tracks a cumulative record of procedures and links it to the patient demographic and insurance information to generate a 1500 claim form to bill insurance. |
| Ledger Cards | A patient's accounts receivable ledger done manually would be tracked on _____. |
| Day Sheet | This form keeps a running balance of the daily activity of a practice. |
| True | True or False: The day sheet can be generated electronically |
| True | True or False: Some practices may keep a manual day sheet as a control measure even when using a computerized system. |
| False | True or False: You do not move to a new day sheet until the previous one is completely full. |
| Reconcile day sheets at the end of each day (make sure cash and checks match with a detailed deposit slip), keep calculator tape with cash totals, deposit earnings daily, track and match to deposits the daily credit card transactions | List 4 ways to self audit daily. |
| True | True or False: it is important to file charge slips/superbills by date and to make sure totals match the day sheets because insurance companies and the IRS can audit these forms. |
| Day sheet, deposit receipt, credit card receipts and calculator tape | List 4 forms of proof to keep when making a deposit. |
| False (correct it on a subsequent daysheet with an explanation) | True or False: when recording a mistake on a day sheet, go back to the day the mistake was made and erase or white out the error. |
| True | True or False: Once a day is closed no changes can be made to the day sheet. |
| Pegboard (or write it once) Systems | Systems that can create multiple documents while writing one time are known as _____. |
| Day sheet, deposit slip, patient ledger card and patient receipts | List 4 examples of documents that could be concurrently created in a pegboard system. |
| Verify and initial packing slip on purchases received, place invoices in a special folder until paid, write the invoice or vendor account number on the check when paying and record the date and check number on the statement before you file it with other paid invoices. | List 4 ways to track your accounts payable. |
| Keep a daily report, match deposit to day sheet, account for differences, keep it in a safe place and back up computer systems daily. | List 5 ways to track your accounts payable daily. |
| If you pay your bill in 10 days you get a 2% discount, otherwise it is due in 30 days. | What does 2/10 net 30 mean? |
| Cash basis accounting | revenues are recorded when cash is received and expenses are recorded when cash is paid (although we'll record when expense is incurred). |
| Accrual basis accounting | revenues are recorded when they are earned regardless of when cash is paid; expenses are recorded in the period in which they are incurred. |
| Check Book and Credit Card Statements | What two items can be used as a record of disbursement if you are using single entry accounting? |
| True | True or False: It will affect your taxes if you fail to keep personal and business expenses separate. |
| True | True or False: employers are responsible for withholding payroll tax from their employees paychecks. |
| Depreciation | The cost to a business of a plant asset losing its useful life (functional and physical) |
| Plant Asset | tangible asset used to operate the business (includes real estate but not the building you are in) |
| Book Value | The difference between the original cost and the accumulated depreciation. |
| Tax return, quarterly forms 940 and 941, balance sheet and income statement. | If you were to keep a binder with hard copies of important tax information, what 4 things would you include? |
| Who do I owe and when is it due | The accounts payable aging report tells me _____. |
| Who owes me and when is it due | The accounts receivable aging report tells me ____. |
| Monthly sales reports, accounts receivable aging reports and accounts payable aging reports | List 3 other documents (besides tax documents) that you would like to have hard copies of if your computer system were to crash. |
| True | True or False: expenses must be considered both ordinary and necessary |
| Ordinary | Calling expenses ____ means they are common and accepted by your profession. |
| Necessary | Calling expenses ____ means they are helpful and appropriate. |
| Start up costs, taxable gains or loss on the sale of assets, seminars, business meals and entertainment | List 4 expenses that you need to track for tax purposes. |
| Original cost of the equipment, method of depreciation, costs associated with the purchase (transportation fees, installation costs, taxes, transit insurance etc.), date item was placed in service, log showing date depreciations were taken and method of depreciation calculation used and an indication of the recovery period. | What should be recorded when calculating depreciation? |
| Forever | How long should you keep tax returns? |
| Forever | How long should you keep W-2s? |
| 4 Years | How long should you keep payroll tax information? |
| 3 Years (from the date on the return) | How long should you keep misc. tax information? |
| Truth in Lending Act Regulation Z | Law that states if you plan to charge interest on customer accounts to be spread out over more than four payments you need documentation of the interest rate, the annual percentage rate and the customer's signature. |
| 2 years | How long do you need to keep documentation for interest charged to a customer's account over more than four payments? |
| I-9 | This form verifies the employee has a right to work in the US. |
| IRS Publication 583 | A good guide for small businesses. |
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