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1. The Federal Trade Commission enforces this act concerning finance charge disclosure.A. The Truth in Lending Act
B. The practice’s fee structure
C. The Credit Bureau
D. The Equal Credit Opportunity Act
2. Which of the following situations is not considered an adjustment?A. Professional discounts
B. Write offs
C. Debits
D. Hardship circumstances
3. How often are billing statements sent to clients with outstanding balances?A. Every 30 days
B. Every 90 days
C. Every 60 days
D. Annually
4. Under which circumstance would the veterinarian not adjust or cancel a fee for services?A. The customer claims he can’t pay today, but he hopes to be able to pay next month.
B. The customer is the director of a nearby animal shelter.
C. The customer is unemployed and homeless.
D. The pet died and the family has complained about the effect of the treatment.
5. When journalizing at the end of the day, the journal entry figures areA. totaled and entered on the monthly summary.
B. entered on a bank reconciliation statement.
C. added to any accounts receivable that came in the mail.
D. posted to the accounts payable ledger.
6. Cost estimates and payment concerns should be addressedA. before the veterinarian provides services.
B. after the client has been sent to collections.
C. only if the client refuses to pay for services.
D. after the veterinarian has provided the requested services.
7. Where should a $4.00 voucher for parking be logged?
A. Daily journal
B. Petty cash form
C. General ledger
D. Checkbook register
9. As mandated by state law, what’s the term for the time period during which the veterinarian may sue a customer for a bad debt?
A. Equal credit opportunity
B. Statute of limitations
C. Protocol for billing and collections
D. Truth in lending
10. Which of the following is not an example of accounts payable?
A. Employee salaries
B. Payment received on account from a customer
C. Malpractice insurance invoice
D. The electric bill
11. When an account is past due _______ days, the veterinarian may decide to turn it over to a collection agency or file a lawsuit.
A. 60
B. 90
C. 30
D. 90+
12. On February 3, Ron Brown was billed for an office visit. What action should the veterinary office assistant take upon aging accounts receivable on March 1 of the same year?A. Give Mr. Brown a tactful collection call.
B. Inform Mr. Brown that his account will go to a collection agency if it remains unpaid by the 25th.
C. Send Mr. Brown a friendly written reminder.
D. Do nothing yet; Mr. Brown’s account is current.
13. When you reconcile a bank statement, how do you account for outstanding checks?
A. Wait until the next statement to check them off.
B. Add them to the balance on the bank statement.
C. Deduct them from the balance on the bank statement.
D. Deduct them from the checkbook balance.
14. To which accounting system does the equation Assets = Liabilities + Equity apply?A. Double-entry
B. Single-entry
C. Cash
D. Accrual
16. In terms of billing, to which of the following can a veterinarian give a professional courtesy?
A. Third-party payers
B. The veterinarian’s colleagues
C. Every customer from whom you request payment
D. A medically indigent customer
17. A charge to a customer’s account is recorded as aA. debit.
B. liability.
C. tax withholding.
D. credit.
18. Which of the following statement is false?A. Customer ledger cards contain each customer’s current account balance.
B. Customer ledger cards can be used to prepare customer bills.
C. Customer ledger cards contain each pet’s medical history.
D. Customer ledger cards are a record of past transactions for each customer.
19. What’s a fee profile?
A. The average rate in a community for a given service
B. The fee a veterinarian charges under unusual circumstances
C. A record of the usual charges by the same veterinarian
D. A range of fees considered usual in a given community
20. The purpose of a disbursements journal is to showA. employee compensation and tax withholding records.
B. all payments received by the office.
C. all amounts paid out of the office.
D. all amounts received and paid out by the office