NAB EXAM - NHA LOS 2025
PRACTICE EXAM 1
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
A facility with long-term debt of $4,000,000 and a total equity of $3,000,000 has a
debt-to-equity ratio of _____, which is _____ the industry average.
A. 1.33/considerably above
B. 1.33/considerably below
C. 2.33/far above
D. 2.33/well below - ANSWERS-A. 1.33/considerably above.
Debt-to-equity ratio = Long-term debt / Total equityDebt-to-equity ratio =
4,000,,000,000 = 1.33, ratio is largeThe debt-to-equity ratio is a measure of
the long-run liquidity of the facility, or the ability of the facility to meet its long-
term debts. A "small" proportion of debt to equity indicates that the facility could
incur more long-term debt, other things being equal, if needed; a high debt-to-
equity ratio (when compared to the industry) probably shows that the facility may
have more debt than may be advisable, all other things being equal. This ratio is of
particular interest to would-be creditors.
END OF
PAGE 1
, NAB EXAM - NHA LOS 2025
PRACTICE EXAM 1
QUESTION 2
A useful form that summarizes the facility's occupancy, listing daily admissions,
discharges, and transfers, is known as the _____.
A. Daily census form
B. Headcount
C. Weekly census report
D. Occupancy ratio - ANSWERS-A. Daily census form.
The routine charge may be determined on a daily, weekly, or monthly basis and is
calculated with the aid of the daily census form. This is a summary of the facility's
occupancy that lists, for each day, admissions, discharges, and transfers by level of
care, if more than one is offered by the facility.
QUESTION 3
_____ are often the largest source of deductions from revenue in nursing facilities.
A. Write-offs
B. Charity care days
C. Bad debts
D. Contractual discounts - ANSWERS-D. Contractual discounts.
END OF
PAGE 2
, NAB EXAM - NHA LOS 2025
PRACTICE EXAM 1
Contractual discounts are often the largest source of deductions from revenue in
nursing facilities. Because most deductions cannot be confirmed until payment has
been received, they are accounted for in the Billings Journal when known rather
than estimated.
QUESTION 4
The frozen food contractor arrives, places the order in the freezer, checks off the
receiving slip, and hands it to the appropriate kitchen employee; this person thanks
the contractor and hands the receiving slip and purchase order copy to the director
of food services. The administrator, on observing this, should _____.
A. Be pleased with the smoothness of the working relationship
B. Compliment the contractor for an efficient delivery
C. Be upset
D. Continue to enjoy their cup of coffee - ANSWERS-C. Be upset.
Orders should be delivered by the contractor; the receiving slip should then be
checked off, then verified by appropriate staff members as correct and accurate.
This is only after the order is checked for damage, spoilage, and being within date.
Only then does the staff member accept the order and hand the documentation off
to their supervisor for processing.
END OF
PAGE 3
, NAB EXAM - NHA LOS 2025
PRACTICE EXAM 1
QUESTION 5
The percentage of Medicaid dollars spent on institutional care over the past couple
of decades has _____.
A. Increased dramatically
B. Decreased slightly
C. Been unchanged
D. Doubled - ANSWERS-B. Decreased slightly.
Medicaid, the primary funding source for nursing facility care days, is shifting its
focus away from institutional spending, down from 61% in 1985 to 32% in 2019
for nursing facilities.
QUESTION 6
The _____ is the only professional organization specifically for nursing facility
administrators in the industry.
A. American College of Health Care Administrators (ACHCA)
B. American College of Healthcare Executives (ACHE)
C. American Geriatrics Society (AGS)
END OF
PAGE 4
PRACTICE EXAM 1
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
A facility with long-term debt of $4,000,000 and a total equity of $3,000,000 has a
debt-to-equity ratio of _____, which is _____ the industry average.
A. 1.33/considerably above
B. 1.33/considerably below
C. 2.33/far above
D. 2.33/well below - ANSWERS-A. 1.33/considerably above.
Debt-to-equity ratio = Long-term debt / Total equityDebt-to-equity ratio =
4,000,,000,000 = 1.33, ratio is largeThe debt-to-equity ratio is a measure of
the long-run liquidity of the facility, or the ability of the facility to meet its long-
term debts. A "small" proportion of debt to equity indicates that the facility could
incur more long-term debt, other things being equal, if needed; a high debt-to-
equity ratio (when compared to the industry) probably shows that the facility may
have more debt than may be advisable, all other things being equal. This ratio is of
particular interest to would-be creditors.
END OF
PAGE 1
, NAB EXAM - NHA LOS 2025
PRACTICE EXAM 1
QUESTION 2
A useful form that summarizes the facility's occupancy, listing daily admissions,
discharges, and transfers, is known as the _____.
A. Daily census form
B. Headcount
C. Weekly census report
D. Occupancy ratio - ANSWERS-A. Daily census form.
The routine charge may be determined on a daily, weekly, or monthly basis and is
calculated with the aid of the daily census form. This is a summary of the facility's
occupancy that lists, for each day, admissions, discharges, and transfers by level of
care, if more than one is offered by the facility.
QUESTION 3
_____ are often the largest source of deductions from revenue in nursing facilities.
A. Write-offs
B. Charity care days
C. Bad debts
D. Contractual discounts - ANSWERS-D. Contractual discounts.
END OF
PAGE 2
, NAB EXAM - NHA LOS 2025
PRACTICE EXAM 1
Contractual discounts are often the largest source of deductions from revenue in
nursing facilities. Because most deductions cannot be confirmed until payment has
been received, they are accounted for in the Billings Journal when known rather
than estimated.
QUESTION 4
The frozen food contractor arrives, places the order in the freezer, checks off the
receiving slip, and hands it to the appropriate kitchen employee; this person thanks
the contractor and hands the receiving slip and purchase order copy to the director
of food services. The administrator, on observing this, should _____.
A. Be pleased with the smoothness of the working relationship
B. Compliment the contractor for an efficient delivery
C. Be upset
D. Continue to enjoy their cup of coffee - ANSWERS-C. Be upset.
Orders should be delivered by the contractor; the receiving slip should then be
checked off, then verified by appropriate staff members as correct and accurate.
This is only after the order is checked for damage, spoilage, and being within date.
Only then does the staff member accept the order and hand the documentation off
to their supervisor for processing.
END OF
PAGE 3
, NAB EXAM - NHA LOS 2025
PRACTICE EXAM 1
QUESTION 5
The percentage of Medicaid dollars spent on institutional care over the past couple
of decades has _____.
A. Increased dramatically
B. Decreased slightly
C. Been unchanged
D. Doubled - ANSWERS-B. Decreased slightly.
Medicaid, the primary funding source for nursing facility care days, is shifting its
focus away from institutional spending, down from 61% in 1985 to 32% in 2019
for nursing facilities.
QUESTION 6
The _____ is the only professional organization specifically for nursing facility
administrators in the industry.
A. American College of Health Care Administrators (ACHCA)
B. American College of Healthcare Executives (ACHE)
C. American Geriatrics Society (AGS)
END OF
PAGE 4
