Chapter 63: Financial management in dental office

Question 1

This insurance will cover a loss, and the employee can be prosecuted under the law for any such theft.

Answer 1

fidelity bonding

Question 2

The most frequently used type of accounts receivable bookkeeping system in a dental practice

Answer 2

computerized system/ pegboard

Question 3

a manual bookkeeping system in which all records are completed with a single entry.

Answer 3

pegboard accounting

“one write system”

Question 4

also referred to as a routing slip or superbill, is used to transmit financial information from the treatment area to the business office.

Answer 4

charge slip

aka routing slip or superbill

Question 5

like a receipt, except that it shows the current account balance. It is provided to patients who do not provide payment in full

Answer 5

walkout statement

Question 6

detailed account that records all the financial transactions of the day.

Answer 6

journal

Question 7

where do you record and enter payments

Answer 7

bookkeeping system.

Question 8

what are checks stamped with

Answer 8

restrictive endorsement

Question 9

he

responsible party, also known as the _______ is the person who has agreed to be responsible for payment of the account.

Answer 9

guarantor

Question 10

In a manual system, patient account records are maintained where

Answer 10

account ledger cards

Question 11

A
change fund, or
petty cash fund, is a fixed amount of cash (usually $50 or less) that is maintained in small bills so that money will be available when a patient pays in cash.

Answer 11

change fund/ petty cash

Question 12

what percentage of consumers prefer to pay with a credir or debit card?

Answer 12

75%

Question 13

The bank charges a percentage rate of _____ as a service fee for handling these transactions, and a fee per transaction (average 25 cents)

Answer 13

%2

Question 14

allows an individual to make a payment using an “app” that is downloaded on his or her smartphone to make an electronic transaction.

Answer 14

digital wallet

Question 15

At the end of each workday, the entries on the daily journal page are compared with the ______ book to ensure that all patient visits have been entered.

Answer 15

appointment

Question 16

the total receipts must match the amount in the ____ ____ minus the change fund

Answer 16

cash drawer

Question 17

A
deposit slip is an itemized memorandum of the currency and checks taken to the bank to be credited to the practice’s account

Answer 17

deposit slip

Question 18

. Some practices add a finance charge (usually 1%) to accounts that are not paid within 30 days of receipt of the first statement.
When a charge such as this is incorporated on an account, or when more than four payment installments are set up, the patient will receive what?

Answer 18

Truth in lending statement

Question 19

arrangements by which the patient pays a fixed amount on a regular basis.

Answer 19

divided payment plans

Question 20

The final decision regarding turning accounts over for collection must be made by who?

Answer 20

the dentist

an account is never turned over without the dentist’s specific approval.

Question 21

manage all the money that is owed by the practice.

Answer 21

accounts payable

Question 22

Expenses are called _________, which is the actual cost of doing business.

Answer 22

overhead

Question 23

Dental office overhead consists of all expenses incurred in running a dental practice; these expenses are categorized as

Answer 23

fixed overhead

variable overhead

Question 24

The money the dentist receives for professional services is calculated as___ ______

Answer 24

gross income

Question 25

Gross income minus the payment of all practice-related expenses yields the what ?

Answer 25

net income

Question 26

packing slip is a form used in a warehouse operation that lists the items to be shipped and the recipient of the shipment.

Answer 26

packing slip

Question 27

a detailed list of goods shipped or services rendered, with an account of all costs on an itemized bill.

Answer 27

invoice

Question 28

a summary of all invoices (charges), payments, credits, and debits for the month

Answer 28

statement

Question 29

Statements and invoices that have not yet been paid are placed where?

Answer 29

accounts payable folder

Question 30

how often is the accouns payable paid

Answer 30

monthly

Question 31

the business assistant writes the checks but does not sign them; the prepared checks are given to the dentist for his or her signature

T OR F .

Answer 31

TRUE

Question 32

s the sale of goods by mail order with payment made on delivery rather than in advance.

Answer 32

cash on delivery

COD

Question 33

the sum of all the vouchers plus the cash on hand should always equal the total amount of the __________

Answer 33

petty cash fun d

Question 34

draft, or an order, drawn on a specific bank account for payment of a specified sum of money to the payee or to the bearer.

Answer 34

check

Question 35

The

payee is the person named on the check as the intended recipient of the amount shown.

Answer 35

payee

Question 36

The

check register is a record of all checks issued and deposits made to the account.

Answer 36

check register

Question 37

For deposit only to the account of [the name of the payee],” the check can be deposited only to the account of the named individual

Answer 37

restrictive deposit

Question 38

Endorsement is made on the back-left side of the check and must match the name shown on the face of the check. A check signed in this manner has a___ _____

Answer 38

blank endrosement

Question 39

not enough money is in the account to cover the check, and the payee cannot collect any of the amount due

Answer 39

Nonsufficient Funds

Question 40

For accounting purposes, when a check from a patient is returned, the amount of that check must be ____ _____ against the patient’s account.

Answer 40

charged back

Question 41

the sum of all financial records of salaries, wages, bonuses, and deductions.

Answer 41

payroll

Question 42

The gross (total pretax) pay for each pay period is entered on this form, as are each of the deductions and the net (gross pay minus all deductions) pay.

Answer 42

payroll report

Question 43

the party (usually an insurance company) who pays the claims and collects the premiums.

Answer 43

carrier

Question 44

provider

Answer 44

dentist

Question 45

refers to the fee that the dentist charges private patients for a given service.

Answer 45

usual fee

Question 46

one that is within the range of the usual fees charged for the same service by dentists with similar training and experience within the same geographic area (such as a city or county).

Answer 46

customary fee

Question 47

fee that is considered justified by special circumstances necessitating extensive or complex treatment. These apply to unusual cases for which the dentist would charge more than the usual fee, even to a private patient, because of the extent of treatment involved.

Answer 47

reasonable fee

Question 48

list of fixed specified amounts that the carrier will pay toward the cost of covered services.

Answer 48

Schedule of Benefits

aka tbale of allowancesm schedule of allowances

Question 49

A fixed fee schedule is an established fee for any treatment received by the patient.

Answer 49

fixed fee schedule

Question 50

The two major factors that determine how much the carrier will pay and how much the patient must pay are

Answer 50

the method of payment

the limitations within the plan.

Question 51

also known as an alternative benefit policy, is a limitation in a dental plan that allows benefits only for the least expensive treatment

Answer 51

LEAT - least expensive alternative treatment

Question 52

If a patient has dental insurance coverage under more than one plan

Answer 52

dual coverage

Question 53

the patient will receive payment from both carriers, but the total received may not be more than 100% of the actual dental expenses.

Answer 53

coordination of benefits

Question 54

Assignment of benefits is a procedure by which the subscriber authorizes the carrier to make payment of allowable benefits directly to the dentist. If no assignment of benefits occurs, the check goes directly to the patient.

Answer 54

Assignment of benefits