Question

Define the following Daily Financial Practice terms

1. accounts payable
2. accounts receivable
3. adjustments
4. balance
5. cashier's check
6. certified check
7. charges
8. credit
9. day sheet
10. debit
11. electronic check
12. encounter form
13. guarantor
14. ledger
15. notary
16. payee
17. petty cash
18. posting
19. remote deposit capture
20. voucher check

Answer 1

1. Accounts payable: sum owed by a business for services or goods received.
2. Accounts receivable: amount of money owed to the medical facility.
3. Adjustments: increases or decreases to patient accounts not due to charges incurred or payments received.
4. Balance: A Balance Sheet represents your practice's overall financial position at a given point in time.
5. Cashier's check: A cashier’s check is a secure way to make large payments and is written by a financial institution such as a bank or credit union against its own funds.
6. Certified check: A certified check is a check that has been corroborated by the bank that issues it and the account it is coming from has sufficient funds and the signature on the check is legitimate.
7. Charges: Finance charges are a form of compensation to the lender for providing the funds, or extending credit, to a borrower.
8. Credit: generally defined as a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date generally with interest.
9. Day sheet: form used with pegboard system to record daily patient transactions (rolling picture of what happened for the day).
10. Debit: A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account.
11. Electronic check: An electronic check is a form of payment made via the internet that is designed to perform the same function as a conventional paper check.
12. Encounter form: are often 2 part forms:

1. Provides patients one copy with a record of account activity for the day(usually pink form).
2. Provides a second copy that serves as the clinic's permanent copy of account activity (usually original or white form).

13. Guarantor: primary on Ins.
14. Ledger: record of charges, payments, and adjustments
15. Notary: A notary is a publicly commissioned official who serves as an impartial witness to the signing of a legal document.
16. Payee: The payee is the one receiving payment and often delivering that good or service.
17. Petty cash: small sum kept on hand for minor or unexpected expenses
18. Posting: Posting in accounting is when the balances in subledgers and the general journal are shifted into the general ledger.
19. Remote deposit capture: RDC allows financial institution customers to “deposit” checks electronically at remote locations, usually in the customers' offices, for virtually instant credit to their account.
20. Voucher check: type of check with a stub attached that can be used to indicate invoice dates, services provided. Some payroll check are written on voucher checks.