Medical Office Accounting - {Theory}

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  1. What is the purpose of Accounting?
    2 provide financial info 2 individual
  2. Wht is the 1st step of the Accounting Process???
    Analyze- Looking 2 C wht events have taken place & thinking abt how these affect the business
  3. Wht is the 2nd step of the Accounting Process???
    Record: Entering financial info in/2 the accounting Sys
  4. Wht is the 3rd step of the Accounting Process???
    Classify: Sorting & grouping like items 2/gether
  5. Wht is the 4th step of the Accounting Process???
    Summarize: Bringing the various items of info 2/gether 2 det. a result
  6. Wht is the 5th step of the Accounting Process???
    Report: Telling the results
  7. Wht is the 6th step of the Accounting Process???
    Interpret: Deciding the importance of info on the various reports
  8. Individuals & based owners:
    Det. financial status
  9. Managers-
    create marketing strategies & evaluate performance.
  10. Creditors-
    Det. approval or denial & amt of loan grant.
  11. Gov't agencies-
    2 det. how much tax individuals & organizations must pay
  12. Owners:
    The firm's current financial condition
  13. Managers:
    Detailed, up-2-date info 2 measure business performance (& plan 4 future operations)
  14. Creditors:
    Whether the firm can pay its bills on time
  15. Government:
    2 determine taxes 2 b paid & whether other regulations r met
  16. *Accounts Receivable*
    - A record of money owed, that shows how much is owed to a company by customers who have purchased goods or services on credit
  17. *Acc'ts Payable*
    - A record of debts, that shows how much a company owes suppliers for the purchase of goods or services on credit
  18. *Aging Report*
    - An Account Receivables Aging Report is a report used by a business to show how long an invoice for payment has been outstanding.
  19. *Pt. Statement of Acc't*
  20. *Day Sheet*
    - A form that permits systematic record keeping of treatment of patients and of monies received and spent.
  21. *Journal*
    - A book of original entry in a double-entry system, listing all transactions and indicating the accounts to which they belong.
  22. "Actual Charge"
    - Total Amt 4 Services rendered tht day
  23. *Medicare Allowed*
    - Allowable amt by Medicare
  24. *Courtesey Adj.*
    • - is when U subtract the "Total Actual Charge" from the :Medicare Allowed Amt"
    • Ex:
    • Tot Act Charge (-) Med. Allowed Amt= Courtesy Adj.
  25. *Remaining Deductible*
    • - has a standard fee of $162. which is subtracted from n.e. payments received by the pt 2/ward the deductible fee amt.
    • Ex:
    • Deductible (-) Payment received = Remaining Deductible
  26. *Cost 2 Share*
    - is the "Medicare Allowed" (subtracted) frm the "Remaining Deductible" (equals) the "Cost 2 Share"

    Ex: M/A(-)R/D=C2S
  27. *Pt. Co/Insurance*
    - is 20% of the Cost 2 Share

    • Ex:
    • .20 (x) C2S(=) Pt. Co. Ins.
  28. **
  29. *Pt. Total Responsibility*
    - Combine the "Remaining Ded" w/the "Pt.Co-Ins."

    • Ex:
    • R/D(+)Pt. Co/Ins= Pt. Total Responsibility
  30. *Medicare Pays*
    - Subtract the "Cost 2 Share" frm the "Pt. Co/Ins."= Medicare-due paytment.

    • Ex:
    • C2S(-)Pt. Co Ins=Medicare Payment
Card Set:
Medical Office Accounting - {Theory}
2011-06-26 05:08:08
Medical Office Accounting Theory

"Medical Accounting"
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