CMAS CMAS Financial Management & Accounting 1

Question 1

Which financial statement summarizes a medical practice's revenues, expenses, and net income over a specific period?

Accepted Answer

Income statement

Answer

The income statement (profit and loss statement) shows revenues, expenses, and net income over a defined accounting period.

Question 2

A medical office's accounts receivable (A/R) aging report shows a large balance in the 90–120 day column. What is the BEST immediate action?

Accepted Answer

Review and follow up on unpaid claims with insurers and patients

Answer

Reviewing and following up on overdue claims is the appropriate step to recover revenue before balances become uncollectible.

Question 3

What does the term 'days in A/R' measure in a medical practice?

Accepted Answer

The average number of days it takes to collect payment after a service is rendered

Answer

Days in A/R measures the average time to collect payment, with lower values indicating more efficient revenue cycle management.

Question 4

Which of the following best describes petty cash management in a medical office?

Accepted Answer

Maintaining a small cash fund for minor incidental expenses with a log of transactions

Answer

Petty cash is a small fund for minor expenses, and all disbursements must be documented with receipts and a transaction log for audit purposes.

Question 5

When a medical office performs a bank reconciliation, what is the primary goal?

Accepted Answer

To ensure the practice's accounting records match the bank statement balance

Answer

Bank reconciliation confirms that the internal accounting records and the bank statement agree, identifying any discrepancies or errors.

(CMAS) Certified Medical Administrative Specialist Practice Test