In the context of journal entries, which of the following must support the coding of procedures and diagnoses in the patient record?

• A. Bank reconciliation
• B. Trial balance
• C. Depreciation schedule
• D. Source documents

Answer: (D)

Verified step by step guidance

1. Understand the concept of journal entries: Journal entries are used to record financial transactions in the accounting system. Each entry must be supported by evidence or documentation to ensure accuracy and compliance.
2. Recognize the role of source documents: Source documents are original records that provide evidence of a transaction. Examples include invoices, receipts, contracts, and patient records in the healthcare context.
3. Relate source documents to coding procedures and diagnoses: In the healthcare industry, coding procedures and diagnoses must be supported by patient records, which serve as source documents. These records ensure that the financial transactions related to medical services are accurate and properly documented.
4. Differentiate between the options provided: Bank reconciliation, trial balance, and depreciation schedule are accounting tools or reports, but they do not directly support the coding of procedures and diagnoses. Source documents are the correct answer because they provide the necessary evidence for these entries.
5. Conclude the importance of source documents: Emphasize that source documents are essential for maintaining the integrity of journal entries, especially in industries like healthcare where accurate coding is critical for billing and compliance.