CPAT Prep Credit And Collections Pfs

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Jalmeida
J
Jalmeida
Community Contributor
Quizzes Created: 1 | Total Attempts: 2,742
| Attempts: 2,742
Quiz Flashcard
SettingsSettings
Please wait...
  • 1/64 Questions

    A patient account can be forwarded to a third party collector at any time.

    • True
    • False
Please wait...
About This Quiz

This CPAT Prep quiz focuses on credit and collections within patient financial services. It assesses knowledge on debt collection, bankruptcy chapters, and Medicare bad debt requirements, crucial for professionals handling patient accounts and financial recovery.

CPAT Prep Credit And Collections Pfs - Quiz

Quiz Preview

  • 2. 

    A statement notifying the patient and/or guarantor of the intent to forward the account to a collection agency is required.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement notifying the patient and/or guarantor of the intent to forward the account to a collection agency is not required.

    Rate this question:

  • 3. 

    Medicare bad debt requires all of the following except:

    • Appropriate sequence of collection attempts

    • A valid service

    • Documented services

    • There are no requirements

    Correct Answer
    A. There are no requirements
    Explanation
    The correct answer is "There are no requirements." Medicare bad debt does require appropriate sequence of collection attempts, a valid service, and documented services. However, there are no specific requirements for Medicare bad debt.

    Rate this question:

  • 4. 

    This chapter is frequently referred to as " reorganization" bankruptsy:

    • Chapter 7

    • Chapter 11

    • Chapter 12

    • Chapter 13

    Correct Answer
    A. Chapter 11
    Explanation
    Chapter 11 is frequently referred to as "reorganization" bankruptcy. This chapter of the bankruptcy code allows businesses to reorganize their debts and continue operating while developing a plan to repay their creditors. It is commonly used by large corporations and businesses that want to remain in operation but need to restructure their financial obligations. Chapter 11 provides a way for businesses to negotiate with creditors, reduce debt, and make necessary changes to become financially viable again.

    Rate this question:

  • 5. 

    This chapter is designed for individuals with regular income who desire to pay their debts abut are currently unable to do so:

    • Chapter 7

    • Chapter 11

    • Chapter 12

    • Chapter 13

    Correct Answer
    A. Chapter 13
    Explanation
    Chapter 13 is the correct answer because it is specifically designed for individuals with regular income who want to pay their debts but are currently unable to do so. This chapter allows individuals to create a repayment plan to gradually pay off their debts over a period of time, usually three to five years, while still being able to keep their assets. It is often referred to as a "wage earner's plan" and provides a structured way for individuals to regain control of their finances and become debt-free.

    Rate this question:

  • 6. 

    This chapter is bankruptcies for farmers:

    • Chapter 7

    • Chapter 11

    • Chapter 12

    • Chapter 13

    Correct Answer
    A. Chapter 12
    Explanation
    Chapter 12 is the correct answer because it specifically deals with bankruptcies for farmers. This chapter provides a specialized bankruptcy process for family farmers and fishermen, allowing them to reorganize their debts and continue their farming operations. It is designed to provide a more flexible and less expensive option for farmers who are facing financial difficulties. Therefore, Chapter 12 is the appropriate bankruptcy chapter for farmers in need of debt relief.

    Rate this question:

  • 7. 

    This chapter applies to individuals and businesses that cannot pay their debts based on their incomes:

    • Chapter 7

    • Chapter 11

    • Chapter 12

    • Chapter 13

    Correct Answer
    A. Chapter 7
    Explanation
    Chapter 7 of bankruptcy law applies to individuals and businesses who are unable to pay their debts based on their incomes. This chapter allows for the liquidation of assets to repay creditors. It is typically used by individuals with limited income and few assets, allowing them to eliminate most of their debts and start fresh financially. This chapter is different from Chapters 11, 12, and 13 which have different requirements and purposes in bankruptcy proceedings.

    Rate this question:

  • 8. 

    70% of all bankruptcies are filed under this chapter:

    • Chapter 7

    • Chapter 11

    • Chapter 12

    • Chapter 13

    Correct Answer
    A. Chapter 7
    Explanation
    Chapter 7 is the correct answer because it is the most commonly used chapter for bankruptcy filings. It is known as "liquidation bankruptcy" and is available to both individuals and businesses. Under Chapter 7, a trustee is appointed to sell the debtor's nonexempt assets and distribute the proceeds to creditors. This chapter allows for the discharge of most debts, providing a fresh start for the debtor.

    Rate this question:

  • 9. 

    Most Chapter _____ cases end up as Chapter _____ liquidation cases:

    • Chapter 12 / Chapter 13

    • Chapter 7 / Chapter 11

    • Chapter 13 / Chapter 7

    • Chapter 11 / Chapter 7

    Correct Answer
    A. Chapter 11 / Chapter 7
    Explanation
    Chapter 11 cases are typically filed by businesses that want to reorganize their debts and continue operating, while Chapter 7 cases involve the liquidation of assets to pay off creditors. Therefore, it is common for Chapter 11 cases to ultimately be converted into Chapter 7 liquidation cases if the reorganization efforts fail.

    Rate this question:

  • 10. 

    How long does a business have to initially draft a repayment plan:

    • 1 month

    • 3 months

    • 6 months

    • 1 year

    Correct Answer
    A. 3 months
    Explanation
    A business has 3 months to initially draft a repayment plan. This time frame allows the business to assess its financial situation, analyze its debts, and develop a comprehensive plan for repaying its creditors. It provides a reasonable amount of time for the business to negotiate with creditors, explore potential sources of funding, and create a realistic repayment schedule that aligns with its cash flow and financial capabilities. This initial drafting period is crucial for the business to establish a solid foundation for its debt repayment strategy.

    Rate this question:

  • 11. 

    Under chapter 13, how long is a debtor permitted to repay creditors?

    • 1 year

    • 2 years

    • 3 years

    • 5 years

    Correct Answer
    A. 3 years
    Explanation
    Under chapter 13, a debtor is permitted to repay creditors for a period of 3 years. This chapter of the bankruptcy code allows individuals with regular income to create a repayment plan to pay off their debts over a specified period of time. This time frame of 3 years allows debtors to have a manageable repayment plan and a chance to regain financial stability.

    Rate this question:

  • 12. 

    Under chapter 13, in no case may a plan provide for payments over a period of longer than:

    • 1 year

    • 2 years

    • 3 years

    • 5 years

    Correct Answer
    A. 5 years
    Explanation
    According to chapter 13, the maximum period for which a plan can provide for payments is 5 years. This means that the debtor must complete the repayment of all debts within a period of 5 years under the provisions of chapter 13 bankruptcy. Any plan that extends the payment period beyond 5 years would not be permissible under this chapter.

    Rate this question:

  • 13. 

    A debtor can be placed in involuntary bankruptcy under chapter 7 or 11 if the debtor has:

    • 10 or more creditor, three of which have claims in excess of $2500 each

    • 12 or more creditors, three of which have claims in excess of $5000 each

    • 15 or more creditors, five of which have claims in excess of $10,000 each

    • 20 or more creditor, ten of which have claims in excess of $15,000 each

    Correct Answer
    A. 12 or more creditors, three of which have claims in excess of $5000 each
    Explanation
    If a debtor has 12 or more creditors, with three of them having claims in excess of $5000 each, they can be placed in involuntary bankruptcy under chapter 7 or 11. This means that if the debtor has a significant number of creditors and a few of them have substantial claims, it meets the criteria for the debtor to be forced into bankruptcy proceedings.

    Rate this question:

  • 14. 

    The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 states a debtor must do which of the following:

    • Repay a portion of their debt

    • Receive counseling on budgeting

    • Receive debt management counseling

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires a debtor to fulfill multiple obligations. Firstly, they must repay a portion of their debt, indicating that they cannot completely evade their financial responsibilities. Additionally, they are mandated to receive counseling on budgeting, which aims to educate them on managing their finances more effectively. Lastly, debt management counseling is also required, suggesting that debtors must seek professional guidance on handling their debts. Therefore, the correct answer is "All of the above."

    Rate this question:

  • 15. 

    All of the following are ways to confirm bankruptcy except:

    • Review the local newspaper stories

    • Contact Federal US Bankruptcy Court for the district where the guarantor resides

    • Mail return

    • Contact the attorney of record handling the bankruptcy

    Correct Answer
    A. Mail return
    Explanation
    One way to confirm bankruptcy is by reviewing local newspaper stories, as bankruptcies are often reported in the news. Another way is to contact the Federal US Bankruptcy Court for the district where the guarantor resides, as they would have records of any bankruptcy filings. Additionally, contacting the attorney of record handling the bankruptcy can provide confirmation. However, mail return is not a method to confirm bankruptcy as it does not provide any relevant information regarding bankruptcy status.

    Rate this question:

  • 16. 

    Upon receipt of the a Chapter 7 notification the following must be initiated except:

    • Contact the patient immediately demanding payment in full

    • Flag the patient account

    • Notify all parties if any payments are received on the account

    • Forward a copy of the bankruptcy notice to all third party collection agents

    Correct Answer
    A. Contact the patient immediately demanding payment in full
    Explanation
    Upon receipt of a Chapter 7 notification, it is important to take certain actions to handle the situation appropriately. These actions include flagging the patient account to indicate the bankruptcy status, notifying all parties if any payments are received on the account, and forwarding a copy of the bankruptcy notice to all third-party collection agents. However, it is not advisable to contact the patient immediately and demand payment in full as this goes against the bankruptcy process, which is designed to provide the debtor with relief from immediate payment obligations.

    Rate this question:

  • 17. 

    A Bankruptcy notice that releases the guarantor/patient from financial responsibility of any and all account balances listed on the bankruptcy petition is called:

    • Dismissal

    • Bankruptcy Notice

    • Discharge of Debtor

    • Chapter 7

    Correct Answer
    A. Discharge of Debtor
    Explanation
    A discharge of debtor is a bankruptcy notice that releases the guarantor/patient from financial responsibility of any and all account balances listed on the bankruptcy petition. This means that the debtor is no longer obligated to repay the debts that were included in the bankruptcy filing. The discharge of debtor provides a fresh start for the individual by eliminating their financial obligations and allowing them to move forward without the burden of debt.

    Rate this question:

  • 18. 

    Patient accounts that occur after the petition and/or were not included in the notification will be subject to the discharge.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is saying that patient accounts that happen after the petition and were not mentioned in the notification will be discharged. However, the correct answer is False because the statement implies that these patient accounts will be subject to discharge, but it doesn't explicitly state that they will be discharged. Therefore, the statement does not support the conclusion that these patient accounts will be discharged.

    Rate this question:

  • 19. 

    Most common reasons for bankruptcy dismissal include all of the following except:

    • Failure to appear in court

    • Failure to process required documentation

    • Failure to follow through on the filing process

    • Failure to pay their attorneys

    Correct Answer
    A. Failure to appear in court
    Explanation
    Bankruptcy dismissal can occur for various reasons, such as failure to process required documentation, failure to follow through on the filing process, and failure to pay attorneys. However, failure to appear in court is not typically a reason for bankruptcy dismissal. Appearing in court is an essential part of the bankruptcy process, and failure to do so may result in negative consequences or delays in the case, but it does not usually lead to dismissal.

    Rate this question:

  • 20. 

    Title I of the Consumer Credit Protection Act is also known as:

    • Fair Debt Collections Practices Act

    • Fair Credit Billing Act

    • Fair Credit Reporting Act

    • Truth in Lending Act

    Correct Answer
    A. Truth in Lending Act
    Explanation
    Title I of the Consumer Credit Protection Act is commonly referred to as the Truth in Lending Act. This act was enacted to promote the informed use of consumer credit by requiring lenders to disclose key terms and costs associated with borrowing money. It ensures that consumers have access to clear and accurate information about the terms of credit agreements, enabling them to make informed decisions and compare different credit options. The act also provides remedies for violations and promotes fair lending practices.

    Rate this question:

  • 21. 

    Title VIII of the Consumer Credit Protection Act is also known as:

    • Fair Debt Collections Practices Act

    • Fair Credit Billing Act

    • Fair Credit Reporting Act

    • Truth in Lending Act

    Correct Answer
    A. Fair Debt Collections Practices Act
    Explanation
    Title VIII of the Consumer Credit Protection Act is commonly referred to as the Fair Debt Collections Practices Act (FDCPA). This act was enacted to protect consumers from abusive and unfair debt collection practices by debt collectors. It sets guidelines and regulations for debt collectors, including rules regarding communication with debtors, harassment, and deceptive practices. The FDCPA aims to ensure fair treatment of consumers and promote transparency in debt collection activities.

    Rate this question:

  • 22. 

    Title VI of the Consumer Credit Protection Act is also known as:

    • Fair Debt Collections Practices Act

    • Fair Credit Billing Act

    • Fair Credit Reporting Act.

    • Truth in Lending Act

    Correct Answer
    A. Fair Credit Reporting Act.
    Explanation
    Title VI of the Consumer Credit Protection Act is known as the Fair Credit Reporting Act. This act was enacted to promote accuracy, fairness, and privacy of consumer information contained in the files of credit reporting agencies. It sets guidelines for the collection, dissemination, and use of consumer credit information. The act also provides consumers with the right to access and correct their credit reports, and regulates the activities of credit reporting agencies to ensure they handle consumer information responsibly.

    Rate this question:

  • 23. 

    The purpose of this act is to protect consumers from inaccurate or unfair practices by issuers of open-ended credit.

    • Fair and Accurate Credit Transaction Act

    • Fair Credit Billing Act

    • Fair Credit Reporting Act

    • Truth in Lending Act

    Correct Answer
    A. Fair Credit Billing Act
    Explanation
    The Fair Credit Billing Act is the correct answer because its purpose aligns with the statement provided. The act was established to protect consumers from inaccurate or unfair practices by issuers of open-ended credit. It ensures that consumers have the right to dispute billing errors and provides guidelines for resolving these disputes.

    Rate this question:

  • 24. 

    This act requires creditors to inform debtors of their rights and responsibilities under the act.

    • Fair and Accurate Credit Transaction Act

    • Fair Credit Billing Act

    • Fair Credit Reporting Act

    • Truth in Lending Act

    Correct Answer
    A. Fair Credit Billing Act
    Explanation
    The Fair Credit Billing Act requires creditors to inform debtors of their rights and responsibilities under the act. This act focuses specifically on protecting consumers from unfair billing practices and provides guidelines for disputing and resolving billing errors on credit card statements. It ensures that consumers are aware of their rights and have the necessary information to address any issues with their credit card billing.

    Rate this question:

  • 25. 

    This act deals with the disclosure of information before credit is issued.

    • Fair Debt Collections Practices Act

    • Fair Credit Billing Act

    • Fair Credit Reporting Act

    • Truth in Lending Act

    Correct Answer
    A. Truth in Lending Act
    Explanation
    The Truth in Lending Act requires creditors to provide consumers with important information about the terms and costs of credit before they agree to it. This includes disclosing the annual percentage rate (APR), finance charges, and other fees associated with the credit. By ensuring that consumers have access to this information, the Act promotes transparency and helps borrowers make informed decisions about credit.

    Rate this question:

  • 26. 

    This act provides maximum protection of a consumer’s right to privacy and confidentiality of credit reports.

    • Fair and Accurate Credit Transaction Act

    • Fair Credit Billing Act

    • Fair Credit Reporting Act

    • Truth in Lending Act

    Correct Answer
    A. Fair Credit Reporting Act
    Explanation
    The Fair Credit Reporting Act provides maximum protection of a consumer's right to privacy and confidentiality of credit reports. This act regulates the collection, dissemination, and use of consumer credit information by credit reporting agencies. It ensures that consumers have access to accurate and fair credit reports, and gives them the right to dispute any inaccurate information. The act also restricts who can access a consumer's credit report and requires the consumer's consent for any release of their credit information.

    Rate this question:

  • 27. 

    This act is designed to promote accuracy and ensure the privacy of the information used in consumer reports.

    • Fair and Accurate Credit Transaction Act

    • Fair Credit Billing Act

    • Fair Credit Reporting Act

    • Truth in Lending Act

    Correct Answer
    A. Fair Credit Reporting Act
    Explanation
    The Fair Credit Reporting Act is designed to promote accuracy and ensure the privacy of the information used in consumer reports. It sets guidelines for how consumer reporting agencies collect, use, and share consumer information. The act also gives consumers the right to access their credit reports, dispute inaccurate information, and receive free copies of their reports annually. It aims to protect consumers from unfair or inaccurate information that could impact their creditworthiness and financial opportunities.

    Rate this question:

  • 28. 

    This act amends the Fair Credit Reporting Act.

    • Fair and Accurate Credit Transaction Act

    • Fair Credit Billing Act

    • Fair Credit Reporting Act

    • Truth in Lending Act

    Correct Answer
    A. Fair and Accurate Credit Transaction Act
    Explanation
    The correct answer is the Fair and Accurate Credit Transaction Act. This act is a federal law that amends the Fair Credit Reporting Act. It was enacted in 2003 with the aim of improving consumer rights and protections in relation to credit reporting. The Fair and Accurate Credit Transaction Act introduced several important provisions, including free annual credit reports for consumers, enhanced identity theft protections, and the ability for consumers to place fraud alerts on their credit reports. This act has had a significant impact on the regulation of credit reporting and has helped to empower consumers in managing their credit information.

    Rate this question:

  • 29. 

    FDCPA imposes strict limitation on communication with the debtor or others in collection of a debt. The Act prohibits all of the following except:

    • Harassment or abuse in the collection process

    • Use of false or misleading information during the collection process

    • Communicating with the patient before 9am and after 8pm

    • Communicating with the debtor if they have legal counsel

    Correct Answer
    A. Communicating with the patient before 9am and after 8pm
    Explanation
    The FDCPA imposes strict limitations on communication with the debtor or others in the collection of a debt. This includes prohibiting harassment or abuse in the collection process and the use of false or misleading information. Additionally, the Act also prohibits communicating with the debtor if they have legal counsel. However, there are no specific restrictions on communicating with the patient before 9am and after 8pm.

    Rate this question:

  • 30. 

    The Fair Credit Billing Act provides:

    • A patient must notify the hospital within 30 days after a statement is mailed of any error

    • A patient must notify the hospital within 60 days after a statement is mailed of any error

    • A patient must notify the hospital within 90 days after a statement is mailed of any error

    • A patient must notify the hospital within 180 days after a statement is mailed of any error

    Correct Answer
    A. A patient must notify the hospital within 60 days after a statement is mailed of any error
    Explanation
    The correct answer is that a patient must notify the hospital within 60 days after a statement is mailed of any error. This is in accordance with the Fair Credit Billing Act, which sets the time limit for patients to report any errors on their hospital statements. Waiting beyond this 60-day period may result in the patient losing their rights to dispute the error and seek resolution.

    Rate this question:

  • 31. 

    Per the Fair Credit Billing Act a hospital must respond to the complaint within:

    • 30 days

    • 60 days

    • 90 days

    • 180 days

    Correct Answer
    A. 30 days
    Explanation
    According to the Fair Credit Billing Act, a hospital is required to respond to a complaint within 30 days. This ensures that consumers have a timely resolution to their billing disputes and prevents unnecessary delays or complications in the process. By setting a specific timeframe for response, the Act aims to protect consumers' rights and promote fair billing practices in the healthcare industry.

    Rate this question:

  • 32. 

    Per the Fair Credit Billing Act the error must be corrected within:

    • One (1) billing cycles or 30 days

    • Two (2) billing cycles or 60 days

    • Three (3) billing cycles or 90 days

    • Four (4) billing cycles or 180 days

    Correct Answer
    A. Two (2) billing cycles or 60 days
    Explanation
    Per the Fair Credit Billing Act, if there is an error on a credit card statement, the error must be corrected within two (2) billing cycles or 60 days. This means that the credit card company has a maximum of 60 days to investigate and resolve any billing errors reported by the cardholder. This timeframe provides consumers with protection and ensures that any discrepancies or mistakes on their credit card statements are promptly addressed.

    Rate this question:

  • 33. 

    Per the Fair Credit Report Act, a credit report can be used for all of the following except:

    • Purposes of employment

    • Determine the eligibility for credit

    • Determine the eligibility for life insurance

    • In response to court orders

    Correct Answer
    A. Determine the eligibility for life insurance
    Explanation
    The Fair Credit Report Act allows credit reports to be used for purposes of employment, determining eligibility for credit, and in response to court orders. However, it does not allow credit reports to be used to determine eligibility for life insurance.

    Rate this question:

  • 34. 

    This type of skip is generally caused by clerical error at the time of registration:

    • Intentional

    • False

    • Unintentional

    • Clerical

    Correct Answer
    A. False
    Explanation
    This type of skip is generally caused by clerical error at the time of registration. False. This means that the statement is incorrect and does not accurately describe the cause of the skip. The correct answer is likely one of the other options provided, such as intentional, unintentional, or clerical.

    Rate this question:

  • 35. 

    This type of skip avoids paying bills by changing their residency and failing to leave a forwarding address:

    • Intentional

    • False

    • Unintentional

    • Clerical

    Correct Answer
    A. Intentional
    Explanation
    The correct answer is "Intentional" because this type of skip refers to individuals who purposely change their residency and fail to provide a forwarding address in order to avoid paying bills. This behavior is done intentionally and is a deliberate attempt to evade financial responsibilities.

    Rate this question:

  • 36. 

    This type of skip is a patient who moves or changes their residency but fails to notify creditors:

    • Intentional

    • False

    • Unintentional

    • Clerical

    Correct Answer
    A. Unintentional
    Explanation
    An unintentional skip refers to a patient who unintentionally moves or changes their residency without informing their creditors. This means that the patient did not deliberately try to avoid or deceive their creditors, but rather failed to notify them due to oversight or lack of awareness. It could be a result of forgetfulness, lack of understanding of the importance of notifying creditors, or simply not realizing the need to update their information.

    Rate this question:

  • 37. 

    Available skip tracing resources include all of the following except:

    • Telephone directories

    • Magazine Label

    • Internet

    • US Postal Service

    Correct Answer
    A. Magazine Label
    Explanation
    Skip tracing is the process of locating individuals who are difficult to find. In this context, skip tracing resources refer to the tools or methods used to locate these individuals. Telephone directories, the internet, and the US Postal Service are all commonly used skip tracing resources. However, magazine labels are not typically used for skip tracing purposes, making them the exception in this list.

    Rate this question:

  • 38. 

    When a notice is received that a patient is deceased, conduct all of the following except:

    • Check register of wills for estate information

    • Check if estate exists and file an appropriate caveat to the estate

    • If no estate exists, continue collection effort with surviving family members

    • Change the mailing address to “The Estate of __________”

    Correct Answer
    A. If no estate exists, continue collection effort with surviving family members
    Explanation
    The correct answer is "If no estate exists, continue collection effort with surviving family members." This is because if there is no estate, there would be no assets or funds to collect from. Therefore, it would not be necessary to continue collection efforts with surviving family members.

    Rate this question:

  • 39. 

    General accounting principles applied to cashier functions include all of the following except:

    • Make the deposit the next day possible

    • Maintain a payment log

    • Store un-deposited payments and valuables in a fireproof safe

    • Issue receipts on all cash payments

    Correct Answer
    A. Make the deposit the next day possible
    Explanation
    The general accounting principles applied to cashier functions include maintaining a payment log, storing un-deposited payments and valuables in a fireproof safe, and issuing receipts on all cash payments. However, making the deposit the next day possible is not a general accounting principle. This means that it is not necessary to make the deposit the very next day, as long as all other principles are being followed.

    Rate this question:

  • 40. 

    Effective collection policies include all of the following except:

    • Admission policy

    • Follow up policy

    • Discount policy

    • Discharge policy

    Correct Answer
    A. Discharge policy
    Explanation
    Effective collection policies include an admission policy to ensure that only eligible individuals are admitted and will be able to pay for the services rendered. A follow-up policy is necessary to ensure that outstanding balances are regularly followed up on and collected. A discount policy may be implemented to incentivize prompt payment or offer financial assistance to those in need. However, a discharge policy is not directly related to the collection process as it pertains to the release of patients from a healthcare facility.

    Rate this question:

  • 41. 

    The Statute of Limitations varies from state to state but are usually:

    • Lesser for Judgments

    • Lesser for notes or written agreements

    • Lesser for open-end accounts

    • Greater for oral agreements

    Correct Answer
    A. Greater for oral agreements
    Explanation
    The statute of limitations refers to the time period within which a legal action can be filed. This answer suggests that the statute of limitations is greater for oral agreements compared to other types of agreements such as judgments, notes or written agreements, and open-end accounts. This means that individuals have a longer period of time to initiate legal action for oral agreements compared to these other types of agreements.

    Rate this question:

  • 42. 

    A statute of limitations may be extended for all of the following circumstances except:

    • Obtain a judgment on the account

    • Obtain partial payment

    • Execute a new contract with guarantor

    • Obtain a written “promise to pay”

    Correct Answer
    A. Obtain a judgment on the account
    Explanation
    The statute of limitations determines the time within which a legal action can be filed. In this case, obtaining a judgment on the account would not extend the statute of limitations. Once a judgment is obtained, it means that the legal action has already been taken and the time limit for filing a lawsuit has expired. Therefore, obtaining a judgment on the account does not extend the statute of limitations.

    Rate this question:

  • 43. 

    The primary objective of a collection call is to request a payment.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The primary objective of a collection call is not solely to request a payment. While requesting a payment is an important aspect of a collection call, the primary objective is to establish communication with the debtor, understand their financial situation, and negotiate a resolution for the outstanding debt. This may involve discussing payment options, setting up a payment plan, or even exploring alternative solutions such as debt settlement or forgiveness.

    Rate this question:

  • 44. 

    When preparing to make a collection call, the following steps should be considered except:

    • Prepare an opening statement

    • Review the account for any payments or adjustments

    • Determine the minimum acceptable payment plan

    • Discuss the account with the head of household

    Correct Answer
    A. Discuss the account with the head of household
    Explanation
    The correct answer is "Discuss the account with the head of household". This step should not be considered when preparing to make a collection call. It is not necessary to involve the head of the household in the discussion as it may not be their responsibility to handle the payment or resolution of the account. Instead, the focus should be on preparing an opening statement, reviewing the account for any payments or adjustments, and determining the minimum acceptable payment plan.

    Rate this question:

  • 45. 

    A written collection policy should include all of the following except:

    • Standards to be use for account follow up

    • The balance of the account

    • At what age the account is consider uncollectable

    • Who is responsible for the follow up

    Correct Answer
    A. The balance of the account
    Explanation
    A written collection policy should include standards to be used for account follow-up, at what age the account is considered uncollectible, and who is responsible for the follow-up. However, the balance of the account is not typically included in a collection policy as it is a financial detail that can change over time and is better managed separately.

    Rate this question:

  • 46. 

    What type of care provides healthcare services free of charge to individuals who meet certain criteria?

    • Indigent care

    • Bad debt

    • Charity care

    • Tort Liability

    Correct Answer
    A. Charity care
    Explanation
    Charity care refers to healthcare services that are provided free of charge to individuals who meet specific criteria. This type of care is typically offered by hospitals and healthcare organizations to individuals who are unable to afford medical treatment due to financial constraints. The aim of charity care is to ensure that everyone has access to necessary healthcare services, regardless of their ability to pay.

    Rate this question:

  • 47. 

    What in an uncollectable account resulting from the extension of credit?

    • Indigent care

    • Bad debt

    • Charity care

    • Tort Liability

    Correct Answer
    A. Bad debt
    Explanation
    Bad debt refers to an uncollectable account resulting from the extension of credit. When a customer fails to repay their debt, it becomes a bad debt for the company. This can happen due to various reasons such as bankruptcy, financial difficulties, or unwillingness to pay. Bad debts are typically written off as losses by the company and can negatively impact their financial position.

    Rate this question:

  • 48. 

    What is a patient that has no means of paying for medical services or treatments and is not eligible fro benefits under Medicaid or any other Public Assistance program?

    • Indigent care

    • Bad debt

    • Charity care

    • Tort Liability

    Correct Answer
    A. Indigent care
    Explanation
    Indigent care refers to medical services or treatments provided to patients who are unable to pay for them and are not eligible for benefits under Medicaid or any other Public Assistance program. This term is commonly used in healthcare settings to describe the provision of free or discounted medical care to individuals who have no means of paying for it.

    Rate this question:

  • 49. 

    What is a legally verified claim against a debtor?

    • Tort liability

    • Lien

    • Bad debt

    • Judgment

    Correct Answer
    A. Judgment
    Explanation
    A legally verified claim against a debtor refers to a judgment. A judgment is a decision made by a court after a legal process, where it is determined that the debtor owes a specific amount of money to the creditor. It is a legal recognition of the debt and allows the creditor to take further actions to collect the owed amount, such as garnishing wages or seizing assets.

    Rate this question:

Quiz Review Timeline (Updated): Apr 25, 2024 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Apr 25, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Feb 04, 2011
    Quiz Created by
    Jalmeida

Related Topics

Featured Quizzes

ICT Practice Questions and Answers ICT Practice Questions and Answers
Test Your Science Basics: Science Quiz Bee Test Your Science Basics: Science Quiz Bee
JoJo's Bizarre Adventure: Which JoJo Stand Do You Have? JoJo's Bizarre Adventure: Which JoJo Stand Do You Have?
A Quick Famous Movies Quotes Trivia! A Quick Famous Movies Quotes Trivia!
Quiz for High School Students With Answers Quiz for High School Students With Answers
Music Taste Quiz: What Is My Music Taste? Music Taste Quiz: What Is My Music Taste?
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.