Deck 63: Financial Management in the Dental Office

Question 1

Patient account ledgers are organized according to the:

A)patient's last name.
B)insurance company.
C)responsible party.
D)employer.

Answer 1

responsible party.

Question 2

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

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

Answer 2

Accounting

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

Accounts receivable can be handled using a:

A)computer system.
B)pegboard system.
C)10-key calculator system.
D)both a and b.

Question 5

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 6

Another name for Social Security is:

A)FICA.
B)withholding.
C)retirement.
D)employee savings.

Question 7

The ______ form indicates the number of exemptions the employee is claiming.

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

Question 8

All receipts,including checks and cash,should be deposited:

A)daily.
B)weekly.
C)biweekly.
D)every other day.

Question 9

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 PM 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 10

The change fund:

A)becomes part of the daily deposit.
B)is usually less than five dollars.
C)is maintained in order 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 11

Financial arrangements:

A)should be made before treatment is initiated in all cases, including emergencies.
B)are public information and should be made in a public setting, such as at the front desk where others can witness the discussion.
C)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 12

How 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 13

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

A)office policy manual.
B)state booklet explaining state income tax.
C)Circular E booklet of the IRS.
D)both b and c.

Question 14

_______ 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 15

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

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

Question 16

Of the parties involved in dental insurance,the carrier is:

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 17

The person named on the check as the recipient of the amount shown is known as the:

A)maker.
B)payee.
C)payer.
D)endorsement.

Question 18

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 19

Before treatment,a(n) ______ form can be submitted to the insurance carrier; it provides information on what the insurance company covers and any additional patient payments or copayments.

A)apportionment
B)abatement
C)pretreatment estimate
D)preapproval

Question 20

Accounts receivable manages:

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 21

The guarantor is:

A)the person who is responsible for payment of the account.
B)always the patient.
C)the insurance company.
D)both b and c.

Question 22

When a patient pays with a credit card,the:

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 23

When making financial arrangements with a patient,it is necessary to:

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 24

Patient registration forms include:

A)the 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 25

Participation in a(n) _______ 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 26

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 27

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

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

Question 28

The two patient signature boxes on the insurance claim form are necessary for:

A)release of information.
B)assignment of benefits.
C)filing the claim.
D)both a and b.

Question 29

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 30

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

A)audit trail.
B)ledger.
C)charge slip.
D)transaction.

Question 31

A walkout statement:

A)is 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

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 33

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)90
B)100
C)85
D)115

Question 34

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 35

A computerized accounts receivable management system:

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

Question 36

A patient who has dental coverage under more than one dental plan has:

A)primary coverage insurance.
B)dual coverage.
C)an alternative benefit policy.
D)both a and b.

Question 37

_____ 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 38

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 39

A Truth in Lending form should 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 40

Examples of dental insurance fraud may include:

A)not filing the claim.
B)billing for services not provided.
C)changing fees to obtain a higher payment.
D)both b and c.

Question 41

When both parents have insurance to cover a child,what rule was established to determine which carrier is the primary carrier?

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

Question 42

In insurance,the dentist who provides the treatment to the patient is the:

A)subscriber.
B)group.
C)carrier.
D)provider.

Question 43

The salary of a dental hygienist who works full-time,with 25% daily commission,is

A)fixed overhead.
B)variable overhead.
C)disbursement.
D)accounts payable.

Question 44

The government requires that the dental office keep records of the:

A)hours each employee works.
B)amounts paid to each employee.
C)amounts deducted for tax purposes.
D)all of the above.

Question 45

A detailed list of goods shipped or services rendered with an account of all costs on an itemized bill is a(n):

A)packing slip.
B)invoice.
C)statement.
D)transaction.

Question 46

Each employee must complete a _______ form for tax purposes.

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

Question 47

Dental insurance:

A)is designed to cover the complete cost of care.
B)is a major source of practice income.
C)does not reduce the cost of care for the patient.
D)all of the above.

Question 48

Which statement is not true 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

Once expenses are incurred by a dental practice,they become:

A)accounts payable.
B)net income.
C)disbursements.
D)accounts receivable.

Question 50

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 51

The fee that is determined by a percentage of prefiled fees submitted to the insurance company is the:

A)usual fee.
B)customary fee.
C)reasonable fee.
D)limitations.