NAB RCAL EXAM PREP QUESTIONS UPDATED
VERSION STUDY GUIDE 100% COMPLETE
SOLUTIONS
Breakeven Point? - ANS-total cost = total revenue
Working capital ratio - ANS-current assets / current liabilities
Acid-test (quick) ratio - ANS-(cash + AR + short-term investments) / current liabilities
debt to assets ratio - ANS-total liabilities/total assets
FTE (full time equivalent) - ANS-total number of hours per employee in a week / 40 (i.e. 12+14+40+30
div. by 40)
Profit margin - ANS-NOI/Tot. Revenue. Defined as "income to sales. 2 types, gross prof margin and net
prof margin)
Net Operating Income (NOI) - ANS-Total (gross) Revenue - operating expenses
Occupancy rate - ANS-(# of resident days/facility beds) x 365
HCS - ANS-Hazard Communication Standard. OSHA standard requiring employers to inform workers of
potentially hazardous chemicals.
Balance sheet formula - ANS-Assets = Liabilities + Shareholders Equity
EBITDA - ANS-Earnings before interest, taxes, depreciation, and amortization
Amortization - ANS-the reduction of a loan balance through payments made over a period of time
revenue cycle management - ANS-resident needs->service planning->staffing->billing/collections->
FICA SS Tax and Medicare Tax - ANS-6.2% and 1.45%
4 elements of a valid contract - ANS-agreement, consideration, contractual capacity, legality (in writing)
"ACCL"
Liability insurance usually covers.. - ANS-Bodily injury and property damage
, Lock out tag out - ANS-For all electrical equipment
safe electrical practices - ANS-National Electrical Code or NEC
Following NFPA Life Safety Code - ANS-fire plan, regular fire drills, detectors, training on procedure, non
combustable furnishing/draperies
Extinguisher class A - ANS-ordinary combustibles such as wood/paper
Extinguisher Class B - ANS-For flammable liquids and gas fires (grease, paint)
Extinguisher class C - ANS-Live electrical equipment (panelling)
Extinguisher class D - ANS-Combustable metals (aluminum)
Extinguisher class K - ANS-Commercial cooking equipment (cooking oil, animal fats)
PASS (Fire Safety) - ANS-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) - ANS-rescue, alarm, contain, extinguish
Accrual Basis Accounting - ANS-reporting income when it is earned and expenses when they are incurred
Cash Basis Accounting - ANS-Reporting income when the cash is received and expenses when the cash is
paid.
LLC (Limited Liability Company) - ANS-Limited liability, pass through income taxation, flexibility
S corporation - ANS-A unique government creation that looks like a corporation but is taxed like sole
proprietorships and partnerships
Net Worth Formula - ANS-Assets - Liabilities
Dementia Living Environment - ANS-Residential living with clinical aspects. safe, quiet, secured
Effective Claims Management for working with insurance agencies - ANS-components of the claims
handling process include developing strategies to cut costs and reduce fraud while keeping customers
satisfied
Corporate Compliance Programs - ANS-assist providers and their agents and develop effective internal
controls that promote adherence to applicable federal and state law
VERSION STUDY GUIDE 100% COMPLETE
SOLUTIONS
Breakeven Point? - ANS-total cost = total revenue
Working capital ratio - ANS-current assets / current liabilities
Acid-test (quick) ratio - ANS-(cash + AR + short-term investments) / current liabilities
debt to assets ratio - ANS-total liabilities/total assets
FTE (full time equivalent) - ANS-total number of hours per employee in a week / 40 (i.e. 12+14+40+30
div. by 40)
Profit margin - ANS-NOI/Tot. Revenue. Defined as "income to sales. 2 types, gross prof margin and net
prof margin)
Net Operating Income (NOI) - ANS-Total (gross) Revenue - operating expenses
Occupancy rate - ANS-(# of resident days/facility beds) x 365
HCS - ANS-Hazard Communication Standard. OSHA standard requiring employers to inform workers of
potentially hazardous chemicals.
Balance sheet formula - ANS-Assets = Liabilities + Shareholders Equity
EBITDA - ANS-Earnings before interest, taxes, depreciation, and amortization
Amortization - ANS-the reduction of a loan balance through payments made over a period of time
revenue cycle management - ANS-resident needs->service planning->staffing->billing/collections->
FICA SS Tax and Medicare Tax - ANS-6.2% and 1.45%
4 elements of a valid contract - ANS-agreement, consideration, contractual capacity, legality (in writing)
"ACCL"
Liability insurance usually covers.. - ANS-Bodily injury and property damage
, Lock out tag out - ANS-For all electrical equipment
safe electrical practices - ANS-National Electrical Code or NEC
Following NFPA Life Safety Code - ANS-fire plan, regular fire drills, detectors, training on procedure, non
combustable furnishing/draperies
Extinguisher class A - ANS-ordinary combustibles such as wood/paper
Extinguisher Class B - ANS-For flammable liquids and gas fires (grease, paint)
Extinguisher class C - ANS-Live electrical equipment (panelling)
Extinguisher class D - ANS-Combustable metals (aluminum)
Extinguisher class K - ANS-Commercial cooking equipment (cooking oil, animal fats)
PASS (Fire Safety) - ANS-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) - ANS-rescue, alarm, contain, extinguish
Accrual Basis Accounting - ANS-reporting income when it is earned and expenses when they are incurred
Cash Basis Accounting - ANS-Reporting income when the cash is received and expenses when the cash is
paid.
LLC (Limited Liability Company) - ANS-Limited liability, pass through income taxation, flexibility
S corporation - ANS-A unique government creation that looks like a corporation but is taxed like sole
proprietorships and partnerships
Net Worth Formula - ANS-Assets - Liabilities
Dementia Living Environment - ANS-Residential living with clinical aspects. safe, quiet, secured
Effective Claims Management for working with insurance agencies - ANS-components of the claims
handling process include developing strategies to cut costs and reduce fraud while keeping customers
satisfied
Corporate Compliance Programs - ANS-assist providers and their agents and develop effective internal
controls that promote adherence to applicable federal and state law
