NURSING HOME ADMINISTRATOR CORRECT
FINAL EXAM QUESTIONS AND ANSWERS SURE
A+
✔✔108) Staff Position (Authority) - ✔✔not empowered to make decisions; duties are
primarily to advise (consultants, pharmacists, accountants, etc.)
✔✔109) Functional Authority - ✔✔action outside the normal lines of authority
1. Violates unity of command
2. Necessary due to principle of exception
The two often have edges of distinction blurred
✔✔110) Actionable - ✔✔conduct giving rise to legal action
✔✔111) Aggrieved party - ✔✔one whose rights invaded or who suffered injury
✔✔112) Burden of proof - ✔✔obligation of person bringing action
✔✔113) Liable - ✔✔written defamation
✔✔114) Slander - ✔✔verbal defamation
,✔✔115) Malice - ✔✔intentional doing of wrongful act
✔✔115) Tort - ✔✔a wrong: legal duty owed, breached, and harm occured
✔✔116) Worker Comp: - ✔✔responsible for injuries occurring at work
✔✔117) Scope of Employment: - ✔✔range of employee activities (resident services by
omission or commission)
✔✔118) Governing: - ✔✔excersis authority
✔✔119) Advisory: - ✔✔not binding
✔✔120) Stewardship: - ✔✔accumulation and use of assets
✔✔121) Planning and monitoring: - ✔✔goals and progress
✔✔122) Determining Facility Objectives: - ✔✔measurable, verifiable, and attainable
✔✔123) Governing Body: - ✔✔Approval of P & P
Approval of budget
Selection and Appraisal of Administrator
✔✔FINANCE (14% - 21 questions) - ✔✔
✔✔124) Accounting Equation - ✔✔Assets = Liabilities + Capital
✔✔125) Accounts payable - ✔✔Amounts owed by facility
✔✔126) Balance Sheet - ✔✔Statement showing solvency
✔✔127) Solvency - ✔✔the ability of a corporation to meet its long term fixed expenses
and to accomplish long-term expansion and growth
✔✔128) General ledger - ✔✔Summaries entries in each journal for accounting period
✔✔129) Cost Center - ✔✔Organizational unit whose costs are separately accumulated
✔✔130) Accrual - ✔✔Record revenue when entered; expenses when incurred
✔✔131) Functional Accounting - ✔✔Recording aggregated data for related activities
, ✔✔132) Aggregated - ✔✔formed by the conjunction or collection of particulars into a
whole mass or sum; total; combined
✔✔133) Contractual Discount - ✔✔Uncollectible difference between charges and third
party payor agreements
✔✔134) Depreciation - ✔✔spreading of cost of capital assests over useful life
✔✔135) Operating Statement - ✔✔total revenues - total expenses =net income
(loss)138)
✔✔136) Working Capital - ✔✔Current assets - current liabilities
✔✔137) Entity Concept: - ✔✔The facility, its records and monies are separate from
owners.
Ensuring consistency in accounting through full ownership disclosure.
✔✔138) On-Going Concern: - ✔✔The facility will continue to operate INDEFINITLEY
✔✔139) Consistency: - ✔✔The accounting reports will be prepared in the same way
year to year to allow the facility to compare history to determine risks, and allow for
clarity
✔✔140) Full Disclosure: - ✔✔All information must be shown in financial records
accurately reflecting the financial standing of the facility
✔✔141) Cash Accounting: - ✔✔Expenses are recorded when cash disbursed and
revenues are recorded when money received. (Recorded money as it flows in and out
of facility. Similar to checkbook)
A. Advantage: Simplicity
B. Disadvantage: Does not recognize depreciation, accounts receivable, or payable
✔✔142) Time period: - ✔✔Accounting period (12 months) will be consistent year to year
✔✔143) Objective Evidence: - ✔✔Accounting records are prepared with documentable
records kept by facility (Audit Trail)
✔✔144) Accrual Accounting: - ✔✔Revenues are recognized when they are earned and
expenses when they are incurred, regardless of when cash transactions take place.
A. Advantage: Measure revenues earnings after expenses incurred; include
depreciation, AP and AR
FINAL EXAM QUESTIONS AND ANSWERS SURE
A+
✔✔108) Staff Position (Authority) - ✔✔not empowered to make decisions; duties are
primarily to advise (consultants, pharmacists, accountants, etc.)
✔✔109) Functional Authority - ✔✔action outside the normal lines of authority
1. Violates unity of command
2. Necessary due to principle of exception
The two often have edges of distinction blurred
✔✔110) Actionable - ✔✔conduct giving rise to legal action
✔✔111) Aggrieved party - ✔✔one whose rights invaded or who suffered injury
✔✔112) Burden of proof - ✔✔obligation of person bringing action
✔✔113) Liable - ✔✔written defamation
✔✔114) Slander - ✔✔verbal defamation
,✔✔115) Malice - ✔✔intentional doing of wrongful act
✔✔115) Tort - ✔✔a wrong: legal duty owed, breached, and harm occured
✔✔116) Worker Comp: - ✔✔responsible for injuries occurring at work
✔✔117) Scope of Employment: - ✔✔range of employee activities (resident services by
omission or commission)
✔✔118) Governing: - ✔✔excersis authority
✔✔119) Advisory: - ✔✔not binding
✔✔120) Stewardship: - ✔✔accumulation and use of assets
✔✔121) Planning and monitoring: - ✔✔goals and progress
✔✔122) Determining Facility Objectives: - ✔✔measurable, verifiable, and attainable
✔✔123) Governing Body: - ✔✔Approval of P & P
Approval of budget
Selection and Appraisal of Administrator
✔✔FINANCE (14% - 21 questions) - ✔✔
✔✔124) Accounting Equation - ✔✔Assets = Liabilities + Capital
✔✔125) Accounts payable - ✔✔Amounts owed by facility
✔✔126) Balance Sheet - ✔✔Statement showing solvency
✔✔127) Solvency - ✔✔the ability of a corporation to meet its long term fixed expenses
and to accomplish long-term expansion and growth
✔✔128) General ledger - ✔✔Summaries entries in each journal for accounting period
✔✔129) Cost Center - ✔✔Organizational unit whose costs are separately accumulated
✔✔130) Accrual - ✔✔Record revenue when entered; expenses when incurred
✔✔131) Functional Accounting - ✔✔Recording aggregated data for related activities
, ✔✔132) Aggregated - ✔✔formed by the conjunction or collection of particulars into a
whole mass or sum; total; combined
✔✔133) Contractual Discount - ✔✔Uncollectible difference between charges and third
party payor agreements
✔✔134) Depreciation - ✔✔spreading of cost of capital assests over useful life
✔✔135) Operating Statement - ✔✔total revenues - total expenses =net income
(loss)138)
✔✔136) Working Capital - ✔✔Current assets - current liabilities
✔✔137) Entity Concept: - ✔✔The facility, its records and monies are separate from
owners.
Ensuring consistency in accounting through full ownership disclosure.
✔✔138) On-Going Concern: - ✔✔The facility will continue to operate INDEFINITLEY
✔✔139) Consistency: - ✔✔The accounting reports will be prepared in the same way
year to year to allow the facility to compare history to determine risks, and allow for
clarity
✔✔140) Full Disclosure: - ✔✔All information must be shown in financial records
accurately reflecting the financial standing of the facility
✔✔141) Cash Accounting: - ✔✔Expenses are recorded when cash disbursed and
revenues are recorded when money received. (Recorded money as it flows in and out
of facility. Similar to checkbook)
A. Advantage: Simplicity
B. Disadvantage: Does not recognize depreciation, accounts receivable, or payable
✔✔142) Time period: - ✔✔Accounting period (12 months) will be consistent year to year
✔✔143) Objective Evidence: - ✔✔Accounting records are prepared with documentable
records kept by facility (Audit Trail)
✔✔144) Accrual Accounting: - ✔✔Revenues are recognized when they are earned and
expenses when they are incurred, regardless of when cash transactions take place.
A. Advantage: Measure revenues earnings after expenses incurred; include
depreciation, AP and AR
