Medical Assistant Finance Practice Test 2024

Medical Assistant Finance Practice Test 2024 Questions and Answers: Try our free Medical Assistant exams (like CMARMA, CCMA, NCMA, CMAC) financial management with billing and collections review question answer. You can also download it in PDF format for any Medical Assistant exams.

Medical assistants are expected to have an understanding of basic bookkeeping functions, as well as some accounting, banking, and payroll procedures. This test outlines the material that may be covered on the exam. It also covers third-party billing, which reviews basic coding information.

Medical Assistant Finance Practice Test

Q1. The medical office maintains a record of each check issued that shows the date, the check number, the amount, and the payee. This is called a(n)

  • A. aging report.
  • B. ledger.
  • C. journal.
  • D. check register.
  • E. accounts payable detail.
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Q2. Susan is employed as a medical assistant and earns $15 per hour. The medical office pays employees each week. She works 42 hours during the current week. Her payroll deductions each week total $102.10. Her net pay for the week is

  • A. $747.10.
  • B. $702.10.
  • C. $645.00.
  • D. $522.90.
  • E. $542.90.
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Q3. When a check is endorsed “For Deposit Only,” this is referred to as a

  • A. simple endorsement.
  • B. restrictive endorsement.
  • C. qualified endorsement.
  • D. special endorsement.
  • E. blank endorsement.
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Q4. Which of the following will list, by individual patient names, funds owed to the practice for services provided?

  • A. Day sheet
  • B. Accounts payable ledger
  • C. Receipt
  • D. Charge slip
  • E. Accounts receivable ledger
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Q5. The process of determining which patient accounts are past due is

  • A. compiling a fee profile.
  • B. aging analysis.
  • C. posting managed care discounts.
  • D. coordination of benefits.
  • E. posting debits.
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Q6. The delinquent account of a patient has been turned over to a collection agency. The patient calls the office and wants to make payment arrangements. The medical assistant should

  • A. ask the patient how much he can pay today.
  • B. set up a payment schedule with the patient.
  • C. tell the patient that the total amount due must be paid immediately.
  • D. direct the patient to the collection agency to discuss payments.
  • E. warn the patient of pending legal action to collect the money owed.
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Q7. The individual record of the amounts owed for medical services, payments made, and account balance for each patient is found in the

  • A. financial journal.
  • B. general ledger.
  • C. patient’s ledger.
  • D. daily journal (day sheet).
  • E. trial balance.
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Answer Key: C

Q8. Accounts receivable are

  • A. the record of expenses to be paid by the practice.
  • B. the record of money owed to the practice.
  • C. the record of health insurance companies.
  • D. the record of payroll transactions.
  • E. the record of disbursements.
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Answer Key:  B

Q9. The petty cash fund of the medical office is replenished when

  • A. a check is written and arrangements made for it to be cashed.
  • B. the medical assistant adds cash to the fund and requests reimbursement.
  • C. cash is added from daily collections when funds are low.
  • D. the physician contributes cash to the fund.
  • E. the petty cash fund is closed.
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Q10. The patient’s ledger is actually a(n)

  • A. accounts payable ledger.
  • B. accounts receivable ledger.
  • C. day sheet.
  • D. income account.
  • E. general ledger.
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Q11. The trial balance of accounts receivable is prepared

  • A. daily.
  • B. weekly.
  • C. monthly.
  • D. annually.
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Q12. Payments for professional services by cash, check, or credit card are called

  • A. receipts.
  • B. receivables.
  • C. adjustments.
  • D. payables.
  • E. disbursements.
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Q13. The medical assistant can find information regarding the filing of reports and taxes from the employee’s earnings and employer’s tax contributions in the

  • A. IRS Employer’s Tax Guide.
  • B. medical office handbook.
  • C. IRS Income Tax Guide.
  • D. Physician’s Desk Reference.
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Q14. The medical assistant applies a discount to an unpaid balance on a patient account. This action is referred to as a(n)

  • A. charge for service.
  • B. account payable.
  • C. adjustment.
  • D. receivable.
  • E. withholding.
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Q15. The following ledger entry reduces the balance owed by a patient, but is NOT caused by either a charge for service or a payment.

  • A. Debit
  • B. Credit
  • C. Adjustment
  • D. Payable
  • E. Receivable
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Q16. A patient is charged $100 for treatment by the physician. The patient pays $60 and the medical office posts an adjustment to reduce the balance due by $15. What is the balance due on this account?

  • A. $100
  • B. $85
  • C. $40
  • D. $15
  • E. $25
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Q17. Employers are obligated by law to match which of the following?

  • A. Local income tax withheld
  • B. State income tax withheld
  • C. Federal income tax withheld
  • D. FICA
  • E. FUTA
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Q18. Of the following statements, the one MOST appropriate for use in a collection letter is

  • A. “We will be happy to assist you in making payment arrangements.”
  • B. “We must receive payment within 10 business days or. . . .”
  • C. “Did you lose our last billing?”
  • D. “We are disappointed that you have not made payment on this account.”
  • E. “We cannot pay our employees without receiving your payment.”
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Q19. An emancipated minor sees the physician for a scheduled appointment. The charge for service should be

  • A. billed to the parents.
  • B. written off as uncollectible.
  • C. forwarded to the insurance company of the parents.
  • D. billed to the patient.
  • E. filed with Medicaid.
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Q20. When reconciling the bank statement for the medical practice, which of the following actions will cause an error?

  • A. Deducting bank service charges from the checkbook balance
  • B. Deducting outstanding automated teller machine (ATM) withdrawals from the bank statement
  • C. Deducting outstanding checks from the bank statement
  • D. Deducting NSF checks from the checkbook balance
  • E. Deducting monthly interest paid by the bank from the checkbook balance
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Q21. Which of the following was developed to cover the costs of catastrophic expenses from illness or injury?

  • (A) Medicaid insurance
  • (B) Medicare insurance
  • (C) Primary care
  • (D) Private insurance
  • (E) Major medical insurance
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Q22. Physicians and other health care professionals who contract with the insurance carrier to provide patient care are called

  • (A) preferred providers
  • (B) managed care organizations
  • (C) assignment of benefits
  • (D) primary care physician
  • (E) exclusive provider organization
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Q23. The process of using the number of members enrolled in a plan to determine salary of the physician is called

  • (A) basic insurance
  • (B) HMO
  • (C) capitation
  • (D) catchment
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Q24. The dependents of active-duty personnel, retired personnel, dependents of retired personnel, and dependents of personnel who died while on active duty are covered by

  • (C) SSI
  • (D) EPO
  • (E) HMO
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Q25. In most states, the employer pays a premium to an insurance carrier for a policy known as

  • (A) workers’ compensation insurance
  • (B) private insurance
  • (D) Medicaid
  • (E) Medicare
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Q26. The EOB document may include all the of the following EXCEPT

  • (A) allowed amounts
  • (B) coding updates
  • (C) deductible
  • (D) patient name
  • (E) payment responsibilities
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Q27. Medicare is a federal health insurance program for the following categories of people EXCEPT

  • (A) blind individuals
  • (B) disabled widows
  • (C) patients with end-stage renal disease
  • (D) people 65 years or older
  • (E) preschool children
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Q28. ICD-9-CM codes that may be assigned during an encounter that are not necessarily a diagnosis but are factors that may influence a patient’s health status are referred to as

  • (A) E&M codes
  • (B) E-codes
  • (C) V-codes
  • (D) Volume I codes
  • (E) Volume II codes
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Q29. An agreement in which the health care provider is paid a fixed amount for each person in a specific contract within the practice, regardless of service provided, is called

  • (A) capitation
  • (B) fixed coverage
  • (C) total coverage
  • (D) universal coverage
  • (E) utilization review
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Q30. Inquiry with an insurance company into the maximum dollar amount that will be paid for a procedure is called an insurance

  • (A) coinsurance
  • (B) preauthorization
  • (C) precertification
  • (D) predetermination
  • (E) reimbursemnt
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