RMA Financial Bookkeeping and Collections

Question 1

In a medical office, 'accounts receivable' refers to:

Accepted Answer

Money owed to the practice by patients and insurers

Answer

Accounts receivable is the total amount owed to the practice for services already provided, from both patients and third-party payers. Money the practice owes to others is accounts payable.

Question 2

A petty cash fund is used to:

Accepted Answer

Pay small, incidental office expenses such as postage

Answer

Petty cash is a small fund kept on hand for minor incidental expenses. Each purchase is documented with a voucher or receipt, and the fund is replenished by check when it runs low.

Question 3

Which type of check endorsement is the safest to use when preparing checks for a bank deposit?

Accepted Answer

Restrictive endorsement ('For Deposit Only')

Answer

A restrictive endorsement such as 'For Deposit Only' plus the practice's account number limits what can be done with the check. Even if it is lost or stolen, it can only be deposited into the practice's account.

Question 4

The purpose of aging accounts receivable is to:

Accepted Answer

Sort outstanding balances by how long they have been unpaid

Answer

An aging report groups unpaid accounts by time outstanding (for example 0–30, 31–60, 61–90 and over 90 days). This helps staff prioritize collection efforts, because older accounts are harder to collect.

Question 5

Under the Fair Debt Collection Practices Act guidelines, during which hours may a patient be called about an overdue account?

Accepted Answer

8 a.m. to 9 p.m.

Answer

Collection calls are limited to between 8 a.m. and 9 p.m. in the debtor's local time. Collectors may not harass the debtor, threaten them, or discuss the debt with unauthorized third parties.

RMA Practice Test

RMA Practice Test

RMA Financial Bookkeeping and Collections