Chapter 63 - Test Review

3. _________ is the means or process of recording, classifying, and summarizing financial transactions. a. Accounting b. Financial arranging c. Bookkeeping d. Finance

a. Accounting

1. 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

D. Dentist; business assistant

21. 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

a. capitation program

25. 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

a. code on dental procedures and nomenclature

30. 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 patients clinical chart

a. consider the patient's ability to pay

9. When should all receipts, including checks and cash, be deposited? a. daily b. weekly c. biweekly d. everyday

a. daily

15. __________ pay is the total pay before deductions are subtracted. a. gross b. net c. withholding d. taxable

a. gross

12. Who is the person named on the check form whose account the amount of the check will be withdrawn? a. maker b. payee c. payer d. endorsement

a. maker

28. Which of the following is not an example of 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

a. not filing the claim

13. 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

a. restrictive endorsement

17. What is another name for FICA? a. social security b. withholding c. retirement d. employee savings

a. social security

35. 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

a. the person responsible for payment of the account

37. If the dentist gives you a professional discount of 10% and your total fee for treatment is $210.00, what is the balance you owe for that treatment? a. 21 b. 189 c. 210 d. 241

b. 189

4. 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

b. The money owed to the practice

11. ________ 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

b. fixed overhead

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

b. information indicating the patient's coverage under a dental insurance plan

33. 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

b. reduces the number of statements that must be prepared

34. A patient has an existing balance of $75.00. The charges for that day are $135.00. What is the total amount due on the walkout statement? a. $75.00 b. $135.00 c. $210.00 d. $60.00

c. $210.00

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

c. 100

27. 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

c. CDT

6. How are patient account records organized? a. Patient's last name b. Insurance company c. Responsible party d. Employer

c. Responsible party

16. Which form indicates the number of exemptions the employee is claiming? a. W-2 b. W-3 c. W-4 d. I-9

c. W-4

32. 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

c. charge slip

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

c. circular E booklet of the IRS

8. What is a change fund/ a. money that is part of the daily deposit b. a reserve usually less then 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

c. maintained to have money available when a patient pays cash

7. Before treatment, which form can be submitted to the insurance carrier to request information on what the insurance company covers and any additional patients or co-payments? a. appointment b. abatement c. pre-treatment estimate d. preapproval

c. pre-treatment estimate

22. 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 (HIPPA)

c. the consolidated omnibus budget reconciliation act (COBRA)

5. Accounts receivable can be handled by which method? a. Computer system b. Pegboard system c. 10-Key calculator d. Either A or B

d. Either A or B

2. 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 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. They should be recorded on the patients medical and dental history form

d. They should be recorded on the patients medical and dental history form

23. What does a patient have is he or she has 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

d. both a and b

26. 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

d. both a and b

31. Which statement is correct regarding patient management systems? a. they are essential to 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

d. both b and c are correct statements

36. 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 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

d. business assistant can electronically verify the card is valid and the credit limit has not been exceeded

10. According to the federal Fair Dept Collection Practice Act, which of the following examples of collection efforts is permitted? a. Telephoning the debtor between 5:00 and 9:00 p.m b. threatening violence c. using false pretenses to get information d. contacting the debtor's employer to verify employment or residence

d. contacting the debtor's employer to verify employment or residence

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 and individual plan c. from the state government d. either a or b

d. either a or b

20. Under government programs, such as medicaid, the dentist must accept the amount paid by the carrier as payment in full and not bill the patient for the difference according to which of the following? a. usual, customary, and reasonable (UCR) fees b. schedule of benefits c. table of allowances d. fixed fee schedule

d. fixed fee schedule

19. 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

d. the party that pays the claims and collects the premiums