NAB RCAL Exam Questions and
Complete Solutions 2026
Profit margin - ANSWER-NOI/Tot. Revenue. Defined as "income to sales. 2 types,
gross prof margin and net prof margin)
Net Operating Income (NOI) - ANSWER-Total (gross) Revenue - operating expenses
Occupancy rate - ANSWER-(# of resident days/facility beds) x 365
HCS - ANSWER-Hazard Communication Standard. OSHA standard requiring
employers to inform workers of potentially hazardous chemicals.
Balance sheet formula - ANSWER-Assets = Liabilities + Shareholders Equity
EBITDA - ANSWER-Earnings before interest, taxes, depreciation, and amortization
Amortization - ANSWER-the reduction of a loan balance through payments made over a
period of time
revenue cycle management - ANSWER-resident needs->service planning->staffing-
>billing/collections->
FICA SS Tax and Medicare Tax - ANSWER-6.2% and 1.45%
4 elements of a valid contract - ANSWER-agreement, consideration, contractual
capacity, legality (in writing) "ACCL"
Breakeven Point? - ANSWER-total cost = total revenue
Working capital ratio - ANSWER-current assets / current liabilities
Acid-test (quick) ratio - ANSWER-(cash + AR + short-term investments) / current
liabilities
debt to assets ratio - ANSWER-total liabilities/total assets
FTE (full time equivalent) - ANSWER-total number of hours per employee in a week / 40
(i.e. 12+14+40+30 div. by 40)
Liability insurance usually covers.. - ANSWER-Bodily injury and property damage
Lock out tag out - ANSWER-For all electrical equipment
, safe electrical practices - ANSWER-National Electrical Code or NEC
Following NFPA Life Safety Code - ANSWER-fire plan, regular fire drills, detectors,
training on procedure, non combustable furnishing/draperies
Extinguisher class A - ANSWER-ordinary combustibles such as wood/paper
Extinguisher Class B - ANSWER-For flammable liquids and gas fires (grease, paint)
Extinguisher class C - ANSWER-Live electrical equipment (panelling)
Extinguisher class D - ANSWER-Combustable metals (aluminum)
Extinguisher class K - ANSWER-Commercial cooking equipment (cooking oil, animal
fats)
PASS (Fire Safety) - ANSWER-P - Pull the pin.
A - Aim at the base of the fire, not at the flames.
S - Squeeze the lever.
S - Sweep the nozzle from side to side.
R.A.C.E. (Fire safety) - ANSWER-rescue, alarm, contain, extinguish
Accrual Basis Accounting - ANSWER-reporting income when it is earned and expenses
when they are incurred
Cash Basis Accounting - ANSWER-Reporting income when the cash is received and
expenses when the cash is paid.
LLC (Limited Liability Company) - ANSWER-Limited liability, pass through income
taxation, flexibility
S corporation - ANSWER-A unique government creation that looks like a corporation
but is taxed like sole proprietorships and partnerships
Net Worth Formula - ANSWER-Assets - Liabilities
Dementia Living Environment - ANSWER-Residential living with clinical aspects. safe,
quiet, secured
Effective Claims Management for working with insurance agencies - ANSWER-
components of the claims handling process include developing strategies to cut costs
and reduce fraud while keeping customers satisfied
Complete Solutions 2026
Profit margin - ANSWER-NOI/Tot. Revenue. Defined as "income to sales. 2 types,
gross prof margin and net prof margin)
Net Operating Income (NOI) - ANSWER-Total (gross) Revenue - operating expenses
Occupancy rate - ANSWER-(# of resident days/facility beds) x 365
HCS - ANSWER-Hazard Communication Standard. OSHA standard requiring
employers to inform workers of potentially hazardous chemicals.
Balance sheet formula - ANSWER-Assets = Liabilities + Shareholders Equity
EBITDA - ANSWER-Earnings before interest, taxes, depreciation, and amortization
Amortization - ANSWER-the reduction of a loan balance through payments made over a
period of time
revenue cycle management - ANSWER-resident needs->service planning->staffing-
>billing/collections->
FICA SS Tax and Medicare Tax - ANSWER-6.2% and 1.45%
4 elements of a valid contract - ANSWER-agreement, consideration, contractual
capacity, legality (in writing) "ACCL"
Breakeven Point? - ANSWER-total cost = total revenue
Working capital ratio - ANSWER-current assets / current liabilities
Acid-test (quick) ratio - ANSWER-(cash + AR + short-term investments) / current
liabilities
debt to assets ratio - ANSWER-total liabilities/total assets
FTE (full time equivalent) - ANSWER-total number of hours per employee in a week / 40
(i.e. 12+14+40+30 div. by 40)
Liability insurance usually covers.. - ANSWER-Bodily injury and property damage
Lock out tag out - ANSWER-For all electrical equipment
, safe electrical practices - ANSWER-National Electrical Code or NEC
Following NFPA Life Safety Code - ANSWER-fire plan, regular fire drills, detectors,
training on procedure, non combustable furnishing/draperies
Extinguisher class A - ANSWER-ordinary combustibles such as wood/paper
Extinguisher Class B - ANSWER-For flammable liquids and gas fires (grease, paint)
Extinguisher class C - ANSWER-Live electrical equipment (panelling)
Extinguisher class D - ANSWER-Combustable metals (aluminum)
Extinguisher class K - ANSWER-Commercial cooking equipment (cooking oil, animal
fats)
PASS (Fire Safety) - ANSWER-P - Pull the pin.
A - Aim at the base of the fire, not at the flames.
S - Squeeze the lever.
S - Sweep the nozzle from side to side.
R.A.C.E. (Fire safety) - ANSWER-rescue, alarm, contain, extinguish
Accrual Basis Accounting - ANSWER-reporting income when it is earned and expenses
when they are incurred
Cash Basis Accounting - ANSWER-Reporting income when the cash is received and
expenses when the cash is paid.
LLC (Limited Liability Company) - ANSWER-Limited liability, pass through income
taxation, flexibility
S corporation - ANSWER-A unique government creation that looks like a corporation
but is taxed like sole proprietorships and partnerships
Net Worth Formula - ANSWER-Assets - Liabilities
Dementia Living Environment - ANSWER-Residential living with clinical aspects. safe,
quiet, secured
Effective Claims Management for working with insurance agencies - ANSWER-
components of the claims handling process include developing strategies to cut costs
and reduce fraud while keeping customers satisfied
