CBCS Billing and Coding Basics 3

Question 1

What does the term 'accounts receivable (AR)' represent in medical billing?

Accepted Answer

Money owed to the practice for services rendered but not yet paid

Answer

Amounts owed to vendors by the practice

Answer

Money the practice has already collected

Answer

The total charges generated in a billing period

Question 2

In ICD-10-CM, what does the 7th character extension 'A' typically indicate?

Accepted Answer

Initial encounter

Answer

Subsequent encounter

Answer

Sequela

Answer

Active treatment phase

Question 3

What is a coordination of benefits (COB) situation?

Accepted Answer

When a patient has more than one insurance plan and the order of payment must be determined

Answer

When a provider is out-of-network

Answer

When a claim is submitted to both Medicare and Medicaid simultaneously

Answer

When a provider submits a corrected claim

Question 4

Which type of code is used to report the reason a patient sought medical care?

Accepted Answer

ICD-10-CM diagnosis code

Answer

CPT code

Answer

HCPCS Level II code

Answer

Revenue code

Question 5

What is the purpose of a remittance advice (RA)?

Accepted Answer

To inform the provider of claim adjudication results including payments, adjustments, and denials

Answer

To request pre-authorization for a service

Answer

To notify the patient of their financial responsibility

Answer

To correct errors on a previously submitted claim

Question 6

What does 'clean claim' mean in medical billing?

Accepted Answer

A claim that contains all required information and passes all edits without errors, allowing for immediate processing

Answer

A claim submitted on white paper with no corrections

Answer

A claim from which all personal health information has been removed

Answer

A claim that has been approved for payment