Chapter 63: Financial management in dental office Flashcards

1
Q

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

A

fidelity bonding

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2
Q

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

A

computerized system/ pegboard

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3
Q

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

A

pegboard accounting

“one write system”

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4
Q

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

A

charge slip

aka routing slip or superbill

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5
Q

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

A

walkout statement

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6
Q

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

A

journal

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7
Q

where do you record and enter payments

A

bookkeeping system.

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8
Q

what are checks stamped with

A

restrictive endorsement

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9
Q

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

A

guarantor

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10
Q

In a manual system, patient account records are maintained where

A

account ledger cards

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11
Q

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.

A

change fund/ petty cash

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12
Q

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

A

75%

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13
Q

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

A

%2

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14
Q

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

A

digital wallet

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15
Q

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.

A

appointment

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16
Q

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

A

cash drawer

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17
Q

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

A

deposit slip

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18
Q

. 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?

A

Truth in lending statement

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19
Q

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

A

divided payment plans

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20
Q

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

A

the dentist

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

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21
Q

manage all the money that is owed by the practice.

A

accounts payable

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22
Q

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

A

overhead

23
Q

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

A

fixed overhead
variable overhead

24
Q

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

A

gross income

25
Q

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

A

net income

26
Q

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

A

packing slip

27
Q

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

A

invoice

28
Q

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

A

statement

29
Q

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

A

accounts payable folder

30
Q

how often is the accouns payable paid

A

monthly

31
Q

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 .

A

TRUE

32
Q

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

A

cash on delivery
(COD)

33
Q

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

A

petty cash fun d

34
Q

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.

A

check

35
Q

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

A

payee

36
Q

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

A

check register

37
Q

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

A

restrictive deposit

38
Q

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___ _____

A

blank endrosement

39
Q

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

A

Nonsufficient Funds

40
Q

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

A

charged back

41
Q

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

A

payroll

42
Q

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.

A

payroll report

43
Q

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

A

carrier

44
Q

provider

A

dentist

45
Q

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

A

usual fee

46
Q

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).

A

customary fee

47
Q

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.

A

reasonable fee

48
Q

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

A

Schedule of Benefits

aka tbale of allowancesm schedule of allowances

49
Q

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

A

fixed fee schedule

50
Q

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

A

the method of payment

the limitations within the plan.

51
Q

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

A

LEAT - least expensive alternative treatment

52
Q

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

A

dual coverage

53
Q

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

A

coordination of benefits

54
Q

_________ 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.

A

Assignment of benefits