Deck 63: Financial Management in the Dental Office

Question 1

When should all receipts,including checks and cash,be deposited?

A)Daily
B)Weekly
C)Biweekly
D)Every other day

Answer 1

Daily

Question 2

Before treatment,which form can be submitted to the insurance carrier to request information on what the insurance company covers and any additional patient payments or copayments?

A)Apportionment
B)Abatement
C)Pretreatment estimate
D)Preapproval

Answer 2

Pretreatment estimate

Question 3

After the ______ has completed the case presentation to the patient,the ______ may be asked to handle the discussion of the fees involved.

A)dentist; dentist
B)dental assistant; business assistant
C)business assistant; dental assistant
D)dentist; business assistant

Answer 3

dentist; business assistant

Question 4

According to the federal Fair Debt Collection Practice Act,which of the following examples of collection efforts is permitted?

A)Telephoning the debtor between 5:00 and 8:00 PM
B)Threatening violence
C)Using false pretenses to get information
D)Contacting the debtor's employer to warn them about their deadbeat employee

Question 5

Who is the person named on the check as the recipient of the amount shown?

A)Maker
B)Payee
C)Payer
D)Endorsement

Question 6

Of the parties involved in dental insurance,who is the carrier?

A)The person receiving treatment
B)A spouse or child of the subscriber
C)The union or employment organization that has negotiated the dental insurance as part of its benefits package
D)The party that pays the claims and collects the premiums

Question 7

How are patient account ledgers organized?

A)Patient's last name
B)Insurance company
C)Responsible party
D)Employer

Question 8

Where can the federal regulations that require an employer to take certain deductions from an employee's pay for payroll taxes can be found?

A)Office policy manual
B)State booklet explaining state income tax
C)Circular E booklet of the IRS
D)Both b and c

Question 9

______ pay is the amount the employee takes home after all the deductions are made.

A)Gross
B)Net
C)Withholding
D)Taxable

Question 10

Which statement is correct about financial arrangements?

A)They should be made before treatment is initiated in all cases, including emergencies.
B)They are public information and should be made in a public setting, such as at the front desk where others can witness the discussion.
C)They should be made in an unhurried manner with the person responsible for the account.
D)Should be recorded on the patient's medical and dental history form.

Question 11

What is another name for Social Security?

A)FICA
B)Withholding
C)Retirement
D)Employee savings

Question 12

A ________ may read "For deposit only to the account of [the name of the person or business]," which allows the check to be deposited only in the account of that individual or company.

A)restrictive endorsement
B)raised check
C)blanket endorsement
D)rubber-stamp endorsement

Question 13

_______ is the means or process of recording,classifying,and summarizing financial transactions.

A)Accounting
B)Financial arranging
C)Bookkeeping
D)Finance

Question 14

What is a change fund?

A)Money that is part of the daily deposit
B)A reserve usually less than five dollars
C)Maintained to have money available when a patient pays cash
D)Will be different at the end of the day than it was at the beginning of the day

Question 15

Which form indicates the number of exemptions the employee is claiming?

A)W-2
B)W-3
C)W-4
D)I-9

Question 16

Accounts receivable can be handled by which method?

A)Computer system
B)Pegboard system
C)10-key calculator system
D)Either a or b

Question 17

What does accounts receivable manage?

A)The money the practice owes to others
B)The money owed to the practice
C)All money handled in the dental office
D)Both b and c

Question 18

Through which means can a person obtain dental insurance?

A)From an employer or spouse's employer as part of a group plan
B)Through an individual plan
C)From the state government
D)Either a or b

Question 19

In which of the following prepaid dental programs must the dentist accept the amount paid by the carrier as payment in full and not bill the patient for the difference?

A)Usual, customary, and reasonable (UCR) fees
B)Schedule of benefits
C)Table of allowances
D)Fixed fee schedule

Question 20

_______ includes business expenses that continue consistently; these are costs that are incurred regardless of whether the dentist is in the office and whether professional services are actually being provided.

A)Variable overhead
B)Fixed overhead
C)Gross income
D)Net income

Question 21

The total production for a dental office in one day is $9000.The total amount of accounts receivable is $5600 in checks,$360.00 in cash,and $1600 in credit card charges.What is the total amount on the bank deposit slip?

A)$5960.00
B)$7560.00
C)$3040.00
D)$16,560.00

Question 22

Under coordination of benefits,the patient may receive payment from multiple carriers,but the total received may not be more than ____% of the actual dental expenses.

A)85
B)90
C)100
D)115

Question 23

What does a patient have if they have dental coverage under more than one dental plan?

A)Primary coverage insurance
B)Dual coverage
C)An alternative benefit policy
D)Both a and b

Question 24

Which codes are used to simplify dental transaction processing under the Health Insurance Portability and Accountability Act of 1996?

A)ADA
B)CDC
C)CDT
D)ADHA

Question 25

A patient has an existing balance of $75.00.The charges for that day are $1350.What is the total amount due on the walkout statement?

A)$75.00
B)$1350.00
C)$1425.00
D)$1275.00

Question 26

When should the Truth in Lending form be given to the patient?

A)At the initial visit to the dental office
B)When the first monthly statement is sent
C)Before a payment plan of more than four monthly payments is set up
D)After the patient has paid off the balance

Question 27

Under __________,a subscriber to a dental insurance plan has the option to continue coverage if he or she changes jobs,is laid off,or retires.

A)federal insurance
B)The Patient's Bill of Rights
C)The Consolidated Omnibus Budget Reconciliation Act (COBRA)
D)The Health Insurance Portability and Accountability Act (HIPAA)

Question 28

Participation in which program means that the dentist has contracted to provide to subscribers all or most of the dental services covered under the program,in return for payment on a per capita basis?

A)Capitation program
B)Direct reimbursement plan
C)Individual practice association
D)Preferred provider organization

Question 29

What information is collected on patient registration forms?

A)Patient's name, address, place of employment, and social security number
B)Information indicating the patient's coverage under a dental insurance plan
C)Medical and dental history
D)HIPAA release information

Question 30

Which form is generated for each patient that contains his or her name,current charges,previous balance,and treatment completed that day?

A)Audit trail
B)Ledger
C)Charge slip
D)Transaction

Question 31

What is the purpose of a walkout statement?

A)A receipt for services rendered
B)Reduces the number of statements that must be prepared
C)Shows only the charges for that day
D)Is the same thing as a charge slip

Question 32

What occurs when the patient pays by credit card?

A)Payment is part of the regular bank deposit.
B)Dentist is charged by the bank for handling these transactions, which are added to what the patient owes.
C)Credit card payments are not listed as payments like checks and cash are.
D)Business assistant can electronically verify the card is valid and the credit limit has not been exceeded.

Question 33

Who is the guarantor?

A)The person responsible for payment of the account
B)Always the patient
C)The insurance company
D)Both b and c

Question 34

The dental assistant must use which of the following when reporting dental procedures and filing insurance forms?

A)Code on Dental Procedures and Nomenclature
B)Dentist's personal codes
C)State form
D)Both a and c

Question 35

If the dentist gives you a professional discount of 25% and your total fee for treatment is $210.00,what is the balance you owe for that treatment?

A)$52.50
B)$157.50
C)$204.00
D)$262.50

Question 36

Which of the following is incorrect about dental insurance fraud?

A)Not filing the claim
B)Billing for services not provided
C)Changing fees to obtain a higher payment
D)Accepting more payment than what was billed

Question 37

Which statement is correct regarding patient management systems?

A)They are essential to maintain practice records.
B)They must be protected with backup files stored in a safe place away from the office.
C)They will automatically generate account totals and monthly summaries.
D)Both b and c are correct statements.

Question 38

Why are the two patient signature boxes on the insurance claim form necessary?

A)Release of information
B)Assignment of benefits
C)Filing the claim
D)Both a and b

Question 39

What is the monthly payment using the plan outlined: Total charge = $3500,minus the down payment of 1/3 of the total charge,with the balance of charges divided into 6 monthly payments?

A)$565.83
B)$583.33
C)$389.17
D)$390.84

Question 40

What factor is the first to be considered when making financial arrangements with a patient?

A)Consider the patient's ability to pay.
B)Put all agreements on the account statement.
C)Send the information to the insurance company.
D)Record the agreement on the patient's clinical chart.

Question 41

In insurance terms,what is the role of the dentist?

A)Subscriber
B)Group
C)Carrier
D)Provider

Question 42

When a patient has a long outstanding debt to the dental office,what is the most effective method of collection?

A)Collection letters
B)Collection telephone calls
C)Collection agencies
D)Small claims court

Question 43

Under which category would the salary of a dental hygienist,who works full-time and is awarded a 25% daily commission,reside?

A)Fixed overhead
B)Variable overhead
C)Disbursement
D)Accounts payable

Question 44

What happens to expenses once they are incurred by a dental practice?

A)Accounts payable
B)Net income
C)Disbursements
D)Accounts receivable

Question 45

Which statement represents when a detailed list of goods shipped or services rendered with an account of all costs on an itemized bill?

A)Packing slip
B)Invoice
C)Statement
D)Transaction

Question 46

What rule was established to determine which carrier is the primary carrier when both parents have insurance to cover a child?

A)COB
B)CDT
C)Birthday
D)Secondary

Question 47

What records does the government require dental office to keep?

A)Hours each employee works
B)Amounts paid to each employee
C)Amounts deducted for tax purposes
D)All of the above

Question 48

Which of the following is incorrect concerning HIPAA and electronic transactions?

A)All Medicaid claims must be made electronically.
B)HIPAA was implemented to promote the integrity and standardization of electronic claims submissions.
C)All dental offices must file insurance claims electronically.
D)The goal of HIPAA is to have one standardized format for each specific transaction along with a standard set of procedure codes.

Question 49

Which type of fee is determined by a percentage of prefiled fees submitted to the insurance company?

A)Usual fee
B)Customary fee
C)Reasonable fee
D)Limitations

Question 50

Each employee must complete a _______ form for tax purposes.

A)Statement of Earnings
B)W-4
C)W-2
D)FICA

Question 51

Which statement is correct about dental insurance?

A)Dental insurance is designed to cover the complete cost of care.
B)There are different forms of dental insurance policies available.
C)Dental insurance does not reduce the cost of care for the patient.
D)All of the above