<p>Answers to Self-Study Review Questions</p><p>Chapter 16: Bookkeeping</p><p>1. Name the four kinds of bookkeeping systems. a. Single-entry b. Double-entry c. Pegboard d. Computerized</p><p>2. Increases in business assets are known as debits and decreases in assets are called credits.</p><p>3. Explain the following three basic terms in business. a. Assets: Anything owned by the business (equipment, furniture, bank accounts, buildings, accounts receivable) b. Capital: Original investment money and other property of a corporation that is owned c. Liabilities: Monies that are owed for business expenditures (debts)</p><p>4. To write in financial data on a general ledger or a patient’s ledger card is a task known as posting.</p><p>5. List three reasons why pegboard accounting is a popular bookkeeping method used by a physician’s practice. a. Accurate system b. Easy to learn c. Uses a write-it-once process for recording daily office transactions</p><p>A-1 6. The chronological history of the financial transactions of a patient’s account are recorded on a/an ledger card.</p><p>7. Explain what to “extend” the account means. To post the balance forward amount on a new ledger card.</p><p>8. Define the following bookkeeping symbols and abbreviations used when posting to an account. a. ROA: Received on account b. NC: No charge c. ($15.00): Credit of $15 d. B/F: Balance forward</p><p>9. State two instances when a patient would require two ledger cards. a. A private patient who suffers a work injury and becomes an industrial case b. A patient who is private one month and on the Medicaid program the next month</p><p>10. Minor cash purchases for office expenditures should be made from petty cash drawer or petty cash fund.</p><p>A-2</p>