How Will the Medical Office Usually Utilize a Savings Account

question 35

Multiple Choice

How will the medical office usually utilize a savings account?

• A) To hold fund so that checks can be written for ordinary expenses
• B) To pay the salaries for nurses and physicians who work for the medical practice
• C) To keep a reserve fund of money that will not be needed for anticipated expenses
• D) To hold funds so that checks can be written for equipment or other infrequent expenses

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Definitions:

Financial Condition

A description of an entity's financial status, including assets, liabilities, and equity at a specific point in time.

Service Charge

Fees charged for services provided, typically by banks or other financial institutions, which may include account maintenance or transaction fees.

Credit Card

A credit card is a payment card issued by financial institutions that allows cardholders to borrow funds within an agreed limit for purchases or cash advances.

Journal Entry

A journal entry is a record in accounting that logs a transaction in the financial statements of a business.