DA 1.3.

Question 1

Accounts Receivable

Answer 1

outstanding balances owed TO the practice

Question 2

Principles for Financial Arrangements

Answer 2

discussed with patient/ acct holder

PRIOR to treatment ( except emergency )

Question 3

2 Ways Patients Pay

Answer 3

Per appointment

Via payment plan

Question 4

Payment per Appointment

Answer 4

MOST effective method

( inform pt cost prior )

pt pays at end of appt

Question 5

Payment Plans

Answer 5

PREDETERMINED prior to treatment

Question 6

3 option of payment plans

Answer 6

Installments
Monthly Payments
Pre-paid treatment

Question 7

Installments

Answer 7

Estimated fee is divided into 1/3

Question 8

monthly payment

Answer 8

based on treat.
generally same day each month
paid by post dated chq or credit

Question 9

Prepaid

Answer 9

prior to beginning treatment

only required for pt with delinquency history

Question 10

Bookkeeping:

Answer 10

The process of classifying, recording, and summarizing business transactions

Question 11

Accounting:

Answer 11

The process of taking bookkeeping records and making adjustments to prepare financial statements
analyzing and interpreting the results of statements

Question 12

Practice Liability

Answer 12

anything over 90 days ( fees not collected)

Question 13

Practice Liability

Answer 13

anything over 90 days ( fees not collected)

Question 14

Write off reasoning

Answer 14

patient moves

patient banckrupcy

patient passes

Question 15

Bookkeeping involves the management of:

Answer 15

Fees charged
Payments received
Balances due

Question 16

5 Bookkeeping Rules

Answer 16

neat and accurate (ink)
Fee charge entered daily ledger/journal
receipts provided
deposit correspond payment
cheque endorse immediately

Question 17

4 Components of an AR System

Answer 17

Patient ledger card
Daily Journal
Receipts for payment
Monthly and Annual statements

Question 18

Patient ledger card

Answer 18

A running “statement” card
record of all amounts owing to the practice
kept in fireproof safe

Question 19

Daily Journal

Answer 19

Fee/ payment used to create monthly summary

Includes production, payment received, outstanding balances

Question 20

Receipts for payment

Answer 20

error= ‘void’ or sgl line

Question 21

Monthly Summary Records

Answer 21

month production, expenses, amt received.

Question 22

Annual Summary Record

Answer 22

1/4 statements

forms basis for dentist income tax

Question 23

One Write Accounts Receivable System

Answer 23

manual bookkeeping system for small businessess

Question 24

Collection

Answer 24

High Production billing for services rendered for non collected fees

-Cash flow is necessary to support the dental practice