what is the best use for an interest-bearing account in a physicians office?
office savings account to make seasonal large lump sum payments such as -- insurance payments, property taxes.
in order to build up as much interest as possible in the account as possible.
what is the "best practice" in depositing checks from patients and other sources?
deposit checks promptly -- so no "stop payments" are made on checks, so checks don't expire, get lost or get returned for NSF
what is the first thing an MA should do when a check its returned unpaid by the bank?
call the signer of the check immediately.
add the amount of the check back into the patients account ledger as well as the NSF fee from the bank.
what type of checks should not be accepted in a medical office?
checks that say "payment in full" unless the total reflects the outstanding balance as well at the new charges from the appointment that day.
is the person who signs the check --- makes that person responsible for the payment amount
principal in accounting
refers to the amount of debt excluding interest -- payments are usually made monthly including both principal and interest.
how many federal reserves are there in the US?
12 -- SF is #12 and closest to CCMCC
what is required for an MA to be able to sign checks for the office?
a signature card on file at the bank -- assigned to the MA who the responsibility is assigned
what is required in a money market savings account?
minimum balance -- only a specific number of checks can be written from the account per month
the best way to describe an ACH transfer of funds between 2 separate banking institution is both accounts are ______ verified and funds may take several days to become _____?
what is a special endorsement?
specifying the person whom the endorser makes the check payable.
Many Direct Deposits are processed through what process?
ACH -- may take a few days to become avaliable
ACH stands for .....?
Automated Clearing House
what are reasons for STOP payments on checks?
Loss of check disagreement on payment disagreement of purchase
what is a "bank reconciliation" ?
when you take your beginning balance on you bank statement (balance from the last day that is on the statement) -- add up all of the current deposits -- subtract the outstanding transactions -- end with current ledger balance
types of negotiable intruments
personal check cashiers check money order business check voucher check
returned deposit fee
fee charged when a deposited check is returned to the drawers account ($5-$10)
Nonsufficient Funds Fee (NSF)
charged when a check is written against an account with not enough funds and the check is returned unpaid ($25-$40)
properties of a check makes them negotiable
written and signed by the drawer 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 to the drawee
What are ACH transfers? EFT
electronic funds transfer -- allow banks to directly route funds to specific accounts.
what is a money market account?
Savings account -- requires a minimum balance, draws a higher % rate than the traditional savings account