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Ortho Key Facts Review

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robbypowell's version from 2017-05-03 11:41

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--Elements of a practice philosophy should include which of the following?
a. Approach to patient care
b. Personal and staff preparation
c. Community responsibilities
d. Financing dental care
e. All of the above should be included
--An Amortization Schedule is:
a. Is a breakdown of how much interest is charged
b. Is a breakdown of how much of the principle is repaid at each payment
c. Also shows the outstanding balance after the payment is made
d. All of the above
e. None of the above
f. B and C only
--Concerning tax deductions
a. They must be ordinary and necessary
b. The burden of proof lies with the person signing the tax report
c. You must keep records
d. The burden of proof lies with the IRS
e. A, b, c
--Which of the following criteria must be met in order for something to be considered as acceptable deduction by the IRS?
1. It must be “ordinary”
2. It must be “necessary”
3. It must be “reasonable”
4. It is NOT a capital expenditure
5. All of above must be met
46. The break even analysis
1. Relates the offices costs to the production and profit of a practice
2. Provides insights into the cost behavior of the practice and the riskiness of many courses of action
3. Calculates after tax dollars earned
4. Cannot be used to accurately estimate the financial effect of hiring a part-time associate
--An office manual:
1. Defines systems
2. Assigns responsibilities
3. Diagrams organization of the office
4. Is an evolutionary process
5. Defines office philosophy
1. 1,2,4
2. 1,3,4,5
3. 2,4,5
4. 2,3,4,5
5. All above
--OSHA has developed standards for
1. Ionizing radiation safety
2. Nitrous oxide placement
3. Hazardous communication
4. Patient privacy (HIPPA)
5. Bloodbourne pathogens
Question Answer
T/F: for A & B A. Most dental offices in this country operate under the cash basis of accounting; B. This allows the dentist to deduct from their taxes any losses (i.e. accounts receivable) at end of each year.A True B False
T/F: The primary purpose of a profit and loss statement is to explain what the net worth of a business is at a specific moment in time.False
T/F: If you participate in a PPO and lower your fees 20%, all you have to do to break even in the deal is to increase the number of patients you see (volume) by 20%.False
If the bank were to offer you a choice of charging you simple or compound interest on the money you borrow, which should you choose?Simple
The cost of borrowing money is referred to as ______Interest
T/F: If someone s taxable income is $85,000, their marginal tax rate is equal to their average taxFalse
In financial circles, the term “liquid” refers to how easily a “commodity” can be turned into _____Cash
T/F: Tax Benefits are usually considered as an advantage of becoming an associateFalse
T/F: Income = WealthFalse
According to the IRS, what is generally the most serious offense?: Reporting a false ______Income
Your emergency fund should be large enough to cover your expenses for a minimum of ___to___ months3-6 months
T/F: Organized dentistry benefits the patient, the dentist & the professionTrue
Which insurance plan allows patients to have full flexibility when choosing dentists, changing dentists, and seeing dental specialists without a referral?Dental Indemnity
T/F: One advantage of a fee for service plan for the patient is that they can freely choose their dentistTrue
With what type of plan are dentists is paid monthly amount based on number of patients enrolled through his/her office?Dental HMO (capitation) Plan
What is the organization in charge of issuing Georgia dental licenses and addressing complaints against licenses?Georgia Board of Dentistry
The UCR (usual and customary) insurance reimbursement rates are determined by who?the insurance company
Presently, the limits covered by most Dental Benefit Plans are determined by who?The employer (of person with plan)
What percentages should be paid to Payroll? (from simulation)25%
What percentages should be paid to Office Supplies? (from simulation)3%
What percentages should be paid to Dental Supplies? (from simulation)6%
What percentages should be paid to Utilities? (from simulation)2%
What percentages should be paid to Rent? (from simulation)6%
T/F: During an interview of a perspective employee, it is permissible to ask "Are you a US citizen?"False
T/F: During an interview of a perspective employee, it is permissible to ask "Will you have a problem working the hours I have indicated during our interview?"T
T/F: During an interview of a perspective employee, it is permissible to ask "Are you married?"False
T/F: During an interview of a perspective employee, it is permissible to ask "How many days were you absent from work because of illness last year?"False
T/F: High performers don t want to work with low performersTrue
T/F: High performers don t want to fix the problems caused by low performersTrue
T/F: Low performers don t get paidFalse (*)
T/F: Low performers send the message to others that “low performance is ok”True
Does this describe an Exemption or Deduction?: Arises from specific eligible expensesExemption
Does this describe an Exemption or Deduction?: Reduces taxable incomeDeduction
Does this describe an Exemption or Deduction?: Home mortgage interestDeduction
Does this describe an Exemption or Deduction?: Child Care CreditExemption
Does this describe an Exemption or Deduction?: Interest on Student LoansDeduction
What are the “ideal budget percentages” for housing in a personal budget?25-35%
What are the “ideal budget percentages” for food in a personal budget?5-15%
What are the “ideal budget percentages” for utilities in a personal budget?5-10%
What are the “ideal budget percentages” for clothing in a personal budget?2-7%
What are the “ideal budget percentages” for Charitable Gifts in a personal budget?10-15%
T/F: Restrictive Covenants are only used to protect the seller of a practiceFalse
The number of workers contributing to the Social Security system per recipient has ______________ over last 58 yrs.Decreased
T/F: There is no such thing as a “risk-free” investment.True
Which investment vehicles historically exhibit the greatest degree of risk?Stocks
What is the most important number in a dentists practice to evaluate when considering a purchase or associateship?active patient count
T/F: The fact that the senior dentist has not contributed anything into his retirement or profit sharing plan in the last 3 years should be of no concern to the potential associateFalse
T/F: ”bartering” is illegal in the dental practiceFalse
T/F: You can refuse treatment to a patient solely on the basis of Race, Religion, or AgeFalse (none of these)
The portion of production that you are not collecting is known as the ______ _______accounts receivable
Variable cost ratios run ___-___ % for most general dental practices15-25%
Front desk and assisting staff salary should be what %? (Ms. Paiges recommended percentage)8-10%
When deducting the loan payment for tax purposes, as a line item the ______ is deductible but the _____ is notInterest; Principle
The scheduling system that utilizes 15 minute increments, expanded duties, increase profitability and the most consistent pace is _________Linear Scheduling
T/F: The senior dentist must carefully evaluate what the practice can afford as a guaraunteed minimum,and is responsible for insuring that the associate is busy enough to earn their guaranteed minimumTrue
Growing a big hygiene program that gears towards adding a second dentist more common to FFS or PPO?PPO
What percentage should be withheld for Federal Income Tax?6.2%
What percentage should be withheld for GA State Income Tax?6.0%
What percentage should be withheld for Medicare tax?1.45%
What percentage should be withheld for Self-Employment Taxes?7.45%
Over 75% of dentists are involved in what type of practice?Solo
T/F: Every dollar that is earned after the DBEP has been meet is "profit"False
T/F: If you have an accountant, it is not necessary to keep up with your tax recordsFalse (each person is ultimately responsible for htheirself)
Are Lab Bills considered to be Variable or Fixed Expenses?Variable
Are Mortgage fees considered to be Variable or Fixed Expenses?Fixed
Are Supplies considered to be Variable or Fixed Expenses?Variable
Are Malpractice Insurance Premiums considered to be Variable or Fixed Expenses?Fixed
Are Staff Expenses considered to be Variable or Fixed Expenses?Fixed (assuming no flex or expanded hours)
Income = Revenue - ______Expenses
T/F: Patients judge your practice on the quality of your staffTrue
If your payroll taxes are in excess of $500/month then you must make a deposit _____ in a federal depository bankQuarterly
_________-_________ times your income is suggested for life insurance to provide income to your family in the event of your untimely death6-8 times
T/F: Market Skimming is a fee setting strategy that involves setting fees so high that only a few consumers can afford themTrue
T/F: donations to ADPAC can be deducted on your personal income taxesFalse
For CE credit in GA, _____ hours must be completed every ____ years40 hours; 2 years
T/F: Increasing the number of dentists is all that is needed to solve the problem of access to careFalse
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