NAB RCAL Exam Study Guide

1. Breakeven Point?: total cost = total revenue 2. Working capital ratio: current assets / current liabilities 3. Acid-test (quick) ratio: (cash + AR + short-term investments) / current liabilities 4. debt to assets ratio: total liabilities/total assets 5. FTE (full time equivalent): total number of hours per employee in a week / 40 (i.e. 12+14+40+30 div. by 40) 6. Profit margin: NOI/Tot. Revenue. Defined as "income to sales. 2 types, gross prof margin and net prof margin) 7. Net Operating Income (NOI): Total (gross) Revenue - operating expenses2 / 7 8. Occupancy rate: (# of resident days/facility beds) x 365 9. HCS: Hazard Communication Standard. OSHA standard requiring employers to inform workers of potentially hazardous chemicals. 10. Balance sheet formula: Assets = Liabilities + Shareholders Equity 11. EBITDA: Earnings before interest, taxes, depreciation, and amortization 12. Amortization: the reduction of a loan balance through payments made over a period of time 13. revenue cycle management: resident needs->service planning->staffing->billing/collections-> 14. FICA SS Tax and Medicare Tax: 6.2% and 1.45% 15. 4 elements of a valid contract: agreement, consideration, contractual capacity, legality (in writing) "ACCL"3 / 7 16. Liability insurance usually covers..: Bodily injury and property damage 17. Lock out tag out: For all electrical equipment