Certified Medical Assistant Practice Exam

What is a one-write, or write-it-once, bookkeeping system also referred to as?

1. Pegboard system

2. Account balance system

3. Double-entry system

4. Cash basis system

The correct answer is: Pegboard system

A one-write, or write-it-once, bookkeeping system is commonly referred to as a pegboard system. This type of system allows entries to be made on a single piece of paper while providing immediate updates to accounting records. In a pegboard system, transactions can be recorded directly onto individual forms or pages, which are then organized on a board, making it easy to keep track of financial activities without needing to create multiple entries in different ledgers or journals. The design is particularly efficient for small businesses or practices, as it minimizes the time spent on bookkeeping and reduces the potential for errors. This is important for medical offices, where accurate financial records are essential for managing operations and billing. In contrast, the other systems mentioned serve different purposes in accounting. An account balance system focuses on maintaining a current balance without the specific transaction view that a pegboard system provides. A double-entry system requires every financial transaction to be recorded in at least two accounts, ensuring a comprehensive record of financial activities but contradicting the simplicity of the one-write approach. Lastly, a cash basis system accounts for income and expenses only when cash is exchanged, which differentiates it from the pegboard system that can encompass the accrual of expenses irrespective of cash flow.