COE Financial Management Questions and Answers

Question 1

An ophthalmic practice is reviewing its Profit & Loss (P&L) statement. Which of the following items would be categorized under Operating Expenses?

Accepted Answer

Salaries for administrative staff and technicians

Answer

Revenue from cataract surgeries

Answer

Purchase of a new femtosecond laser

Answer

Income from the optical dispensary

Question 2

A practice manager is tasked with improving the Revenue Cycle Management (RCM) process. The first step in a typical RCM workflow begins with:

Accepted Answer

Patient registration and insurance verification

Answer

Claim submission to the payer

Answer

Charge capture and coding

Answer

Denial management and appeals

Question 3

To safeguard the practice's assets and prevent fraud, a crucial internal control is the segregation of duties. Which of the following scenarios best exemplifies this principle?

Accepted Answer

One employee is responsible for opening mail and preparing bank deposits, while a different employee posts payments to the practice management system.

Answer

The front desk employee collects copays and also posts the payments to patient accounts.

Answer

The same person who orders office supplies is also responsible for receiving the shipment and paying the invoice.

Answer

The lead technician is given full authority to manage petty cash, including disbursing funds and reconciling the box.

Question 4

The Certified Ophthalmic Executive is analyzing practice efficiency using key performance indicators (KPIs). Which KPI is calculated by dividing total operating expenses by net collections to measure how effectively the practice converts revenue into physician compensation?

Accepted Answer

Operating Expense Ratio

Answer

Net Operating Income Ratio

Answer

Staff Payroll Ratio

Answer

Revenue per Encounter

Question 5

When an ophthalmic practice compares its financial and operational metrics, such as overhead ratio or revenue per provider, against industry averages or data from similar practices, this process is known as:

Accepted Answer

Benchmarking

Answer

Financial forecasting

Answer

Auditing

Answer

Asset allocation

Question 6

An ophthalmic practice manager notices a high rate of claim denials. Upon investigation, it is found that many claims for procedures like intravitreal injections are being rejected because prior approval was not obtained from the insurance company. This issue represents a failure in which part of the revenue cycle?

Accepted Answer

Prior Authorization

Answer

Charge Capture

Answer

Patient Collections

Answer

Payment Posting