55 terms

Chapter 14 Review - Medical Administration and Business Practices

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Terms in this set (...)

A check must be written as payable to the
Payee
The person who signs a check is the
Drawer or Maker
Which form of payment can be purchased for face value plus a fee from a bank, convenience store, or other retail location and must be signed by the purchaser?
Money Orders
A check that is so old when presented for payment that it is no longer valid is called
Stale Check
A check that is not considered negotiable but can be converted into a negotiable instrument or cash is a
Warrant
Regular withdrawal of funds from one account and transferring them to another account, in specific amounts, at specified times is known as
Automatic Transfer of Funds
A computerized system that enables funds to be debited, credited, or transferred is known as
Electronic Funds Transfer System
When an account holder has given the bank permission to transfer funds monthly to pay bills as a substitute for check writting, it is called
Automatic Bill Paying
What is the name for a check that has been created from a digital image of the original
Electronic Check
On the back of a check or money order, the payer must write his or her name as it appears on the front, this is referred to as
Endorsement
The most common way of endorsing a check is when the payee simply signs his or her name on the back of the check; this is known as a
Blank Endorsement
Which type of endorsement is used on a check that is to be transferred to another person or business?
Full Endorsement
When choosing a PIN for use with a bank account, be sure to
Memorize and protect it
When deposits are made, they are added to the balance of a bank account or
Credited
When checks are written or other withdrawals are made, they are subtracted from the bank balance or
Debited
On a monthly basis, to ensure accuracy of the bank balance, the bank statement should be
Reconciled
Many banks do not accept
Third Party Checks
List three facts about bank transactions and financial documents
Involves Privileged Information
Involves Confidential Information
Should be Kept in Locked Files
A check stub can also be used as a
Check Register
Businesses are more vulnerable to check fraud on
Friday Afternoon, Evenings, Weekends, and Holidays
When using bank by mail, always use
Restrictive Endorsements
When using an after-hours deposit feature, when is the money deposited into the account
The deposit is processed by the bank the following morning or held unopened until the depositor can get to the bank personally to make the deposit.
Patients who do not have a bank account may pay the physician using a special card that has money preloaded called a
Prepaid Card
A machine that imprints figures on a check so that they cannot be changed is called a
Check Writing Machine
When reconciling a bank statement and the statement balance and checkbook balance do not agree, what do you divide the difference by to find the transposition error
Divide by 9
ABA Number
Designates the cities where federal reserve banks are located or other key cities and the states or territories
Automated Teller Machine
ATM; a computerized terminal that enables a customer to make a deposit, withdraw cash, transfer funds, or obtain other bank services
Bank Statement
Lists the date and amount of each deposit and of each withdrawal by date presented for payment, not by date written.
Deposit
Funds given to a bank to be credited to an account
Endorsement
Approval signature on the reverse side of a check that indicates liability for payment of funds disbursed in the case of default or non payment
Check
A written order to a bank to pay money on demand
Credit
A deposit or addition to a bank account
Currency
Paper money in circulation, issued by the government through an act of law
Debit
A withdrawal from or charge to a bank account
Electronic Funds Transfer System
Computerized system that enables funds to be debited, credited, or transferred
Forgery
Fraudulent signature on documents
Limited Check
One bearing a statement that indicates the check is void if written over a certain amount
Overdraft
Charge against an account in excess of the account balance
Payee
Person named on a draft or check as the recipient of the amount shown, AKA bearer
Payer
Party responsible for payment of the amount owed as shown on a check or note
Reconciliation
Act of proving the accuracy of all transactions that have occurred on a checking account
Savings Account
Money deposited in bank or similar institution where it earns interest and has been set aside for future use
Service Charge
Fees assessed on a bank account for processing transactions and for account maintenance
Withdrawal
Removal of funds from a checking account by writing a check or using an ATM; from a savings account, a withdrawal slip may be completed or an ATM may be used
Cashier's Check
Drawn by a bank and signed by an authorized bank official
Certified Check
Presented to the bank for authentication and guarantee
Counter Check
Available at the bank for the depositor to withdraw funds from his/her own account
Traveler's Check
Can be purchased to use in place of personal checks or cash in locations where personal checks may not be accepted and carrying large amounts of cash is not desirable
Voucher Check
Available in a variety of styles and includes either a stub or a way to keep a duplicate copy as a record of the transaction
Pay by Phone
A system that can substitute for check writing in which bill payments are made by calling to authorize a transfer of funds
Negotiable
Legally transferable to another person or business
Restrictive Endorsement
Contains phrases such as, "for deposit only" along with the endorsers signature
Writing a check with the knowledge that there are not sufficient funds in the account to cover it is considered and intent to
Defraud
ATM Skimming
Can occur when thieves use a portable card reading device to record data on a debit or credit cards magnetic strip
Online Banking
Gives customers 24/7 access to their bank accounts via the internet