finance management

Question 1

benchmarking; difference between internal and external benchmarks

Answer 1

process of comparing a practice to others on a local, state, region, or national level; practice’s historical figures vs average numbers or percentages across industry

Question 2

CPA vs bookkeeper

Answer 2

degree in accounting and has sat for numerous exams, CE; learns by trade

Question 3

why should a budget be created

Answer 3

to prevent overspending and shortfalls when paying bills

Question 4

variable expense

Answer 4

expense that changes with the volume of clients and business; medications, supplies, pet food

Question 5

fixed cost

Answer 5

expense that doesn’t change regardless of volume of business; rent, electricity, property tax

Question 6

some areas that could cause a cash flow crunch

Answer 6

improper inventory management, fraud or embezzlement, excessive payroll, higher than profit distributions paid to the owners

Question 7

how can a manager increase the value of a hospital

Answer 7

by ensuring medical records are complete, recommendations are made to clients, clients accept the recommendations being made - building maintenance, modern equipment, good financial records

Question 8

red flags rule; why it should be implemented by vet practice

Answer 8

to try and decrease fraud, embezzlement, and identify theft; all occur in practice

Question 9

fair debt collection practices act

Answer 9

to protect the consumer and set guidelines for credit collectors to abide by; only speaking with the client that owes money, not calling before or after hours, not placing debt collection noticed on outside of statement envelopes

Question 10

what characteristics should be considered when choosing a collections agent

Answer 10

professional, ethical, reliable

Question 11

insufficient funds charge

Answer 11

a check that is returned to a depositor because of lack of funds in the payee account

Question 12

held check

Answer 12

a check that is given to a practice, with the date of acceptance written on the check, and asked to be deposited on a later date

Question 13

staff payroll is considered what for benchmarking purposes

Answer 13

variable

Question 14

accounts receivable should not exceed

Answer 14

1.5% of gross revenue

Question 15

pet health insurance

Answer 15

improves patient care and increases patient examinations

Question 16

indemnity insurance is also known as

Answer 16

NOT managed care, HMO, PPO

Question 17

an amount an owner pays on a monthly basis

Answer 17

premium

Question 18

wellness plans should be developed by

Answer 18

species and age group

Question 19

purpose of wellness plans

Answer 19

promote preventive care