Exam (elaborations)
Chapter 19 Bookkeeping and Banking Chapter Vocabulary Questions with correct Answers
- Course
- Institution
Chapter 19 Bookkeeping and Banking Chapter Vocabulary
[Show more]
Content preview
Chapter 19 Bookkeeping and BankingChapter Vocabulary
Open Accounts - answer Accounts that are open to charges made from time to time;
physicians' patient patient accounts are usually called open-book accounts. Record of
business transactions on the books that represents an unsecured account receivable
where credit has been extended without a formal written contract; payment is expected
within a specified period.
general ledger - answer Record that contains all of the financial transactions of all
accounts; it has equal debits and credits as evidenced by a trial balance
double-entry accounting - answer Bookkeeping system of financial records used in
business, whereby equal accounting debits and credits are recorded for each
transaction
petty cash fund - answer Small amount of monies readily available for minor office
expenses
liabilities - answerLegal obligations of one person to another; debts
ledger card - answerIndividual financial record indicating charges, payments,
adjustments, and balances owed
debits - answerBookkeeping entries reflecting money owed (charges); the increase of a
patient account balance, an asset, or a business expense, of the decrease of a liability
of an owner's equity
daysheet - answerRegister for recording all daily business transactions; also known as
daybook, daily journal sheet, daily record sheet, or general ledger
credits - answerBookkeeping entries reflecting a decrease in the account balance;
include payments by debtors (patients) of a sum received on their account or an
adjustment (write-off)
capital - answerPhysician's share in a business plus operating profit; also known as
owner's equity or net worth
bookkeeping - answerProcess used for analyzing and recording business transactions
for the purpose of collecting amounts due and reporting the financial condition of the
business at a future date
, balance - answerAmount owed on a credit transaction after payments and adjustments
have been recorded; also known as outstanding, running, or unpaid balance
assets - answerAny possessions, either physical objects (tangible) or resources
(intangible), having money value. Tangible assets include cash, inventory, furniture,
fixtures, and equipment; intangible assets may be a service, trademark, or goodwill
adjustment - answerCredit entry made on an account or ledger to decrease a balance
that may be due to professional discounts, courtesy adjustment (write-offs),
disallowances by insurance companies, or to correct bookkeeping errors
accounts receivable (A/R) ledger - answerRecord book (log) that lists all patients'
outstanding accounts showing how much each one owes for services rendered
accounts receivable control - answerDaily summary of dollar amounts that remain
unpaid on all accounts
accounts payable (A/P) ledger - answerRecord book that lists detailed amounts owed to
creditors for the operation of a business, such as supplies and equipment, services
rendered, or facility expenses
accounting - answerA system of recording and summarizing business and financial
transactions and analyzing, verifying, and reporting the results
account - answerFormal record of all transactions made on an individual's financial
record, listing debits, credits, and balance; may be computerized. In a medical practice
using a manual bookkeeping system, this term is referred to as a ledger or ledger card
single-entry accounting - answerType of accounting where each transaction is entered
only once in the account books. It is not self-balancing; in other words, it does not rely
on equal debits or credits.
proprietorship - answerOwner's net worth; that is, that which is equal to the assets of the
business minus the liabilities of the business; also known as owner's equity of capital
posts - answerTo record or transfer financial entries, debits or credits, to an account, for
example, daysheet, computerized account or ledger, bank deposit slip, check register,
or journal
ABA routing number - answerCoding system developed by the American Bankers
Association and used on checks to identify the location of the bank, also called bank
number or transit
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Dreamer252. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now