Financial Management and Accounting Flashcards
6 cards from real CMAA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Financial Management and Accounting flashcards as text
What is the purpose of a patient ledger?
Answer: Tracking an individual patient's charges, payments, and balance
A patient ledger is a record that tracks all financial transactions (charges, payments, adjustments) for an individual patient account.
What does 'fee schedule' mean in a medical office context?
Answer: A list of established charges for medical services
A fee schedule is a complete listing of maximum fees a provider charges for each service or procedure.
Which of the following best describes petty cash in a medical office?
Answer: A small amount of cash kept on hand for minor office expenses
Petty cash is a small, accessible fund kept in the office to cover minor day-to-day expenses that are impractical to pay by check or card.
A patient's 'out-of-pocket maximum' means:
Answer: The maximum amount the patient must pay before insurance covers 100% of costs
The out-of-pocket maximum is the most a patient will pay for covered services in a plan year; after reaching it, insurance pays 100%.
What is the primary purpose of reconciling the bank statement in a medical office?
Answer: To verify that practice records match the bank's records and identify discrepancies
Bank reconciliation ensures the practice's financial records match the bank statement, catching errors or unauthorized transactions.
Which of the following is an example of an accounts payable transaction in a medical practice?
Answer: The practice pays an invoice for medical supplies
Accounts payable represents money the practice owes to vendors; paying a supply invoice is a typical accounts payable transaction.