NAB RCAL Exam Questions & Answers
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 expenses
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
plan- ning->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
1/
11
, capacity, legality (in writing) "ACCL"
16.Liability insurance usually covers..: Bodily injury and property damage
17.Lock out tag out: For all electrical equipment
18.safe electrical practices: National Electrical Code or NEC
19.Following NFPA Life Safety Code: fire plan, regular fire drills,
detectors, train- ing on procedure, non combustable
furnishing/draperies
20.Extinguisher class A: ordinary combustibles such as wood/paper
21.Extinguisher Class B: For flammable liquids and gas fires (grease,
paint)
22.Extinguisher class C: Live electrical equipment (panelling)
23.Extinguisher class D: Combustable metals (aluminum)
24.Extinguisher class K: Commercial cooking equipment (cooking oil,
animal fats)
25.PASS (Fire Safety): 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.
26.R.A.C.E. (Fire safety): rescue, alarm, contain, extinguish
27.Accrual Basis Accounting: reporting income when it is earned and
expenses when they are incurred
28.Cash Basis Accounting: Reporting income when the cash is
received and expenses when the cash is paid.
29.LLC (Limited Liability Company): Limited liability, pass through
2/
11
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 expenses
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
plan- ning->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
1/
11
, capacity, legality (in writing) "ACCL"
16.Liability insurance usually covers..: Bodily injury and property damage
17.Lock out tag out: For all electrical equipment
18.safe electrical practices: National Electrical Code or NEC
19.Following NFPA Life Safety Code: fire plan, regular fire drills,
detectors, train- ing on procedure, non combustable
furnishing/draperies
20.Extinguisher class A: ordinary combustibles such as wood/paper
21.Extinguisher Class B: For flammable liquids and gas fires (grease,
paint)
22.Extinguisher class C: Live electrical equipment (panelling)
23.Extinguisher class D: Combustable metals (aluminum)
24.Extinguisher class K: Commercial cooking equipment (cooking oil,
animal fats)
25.PASS (Fire Safety): 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.
26.R.A.C.E. (Fire safety): rescue, alarm, contain, extinguish
27.Accrual Basis Accounting: reporting income when it is earned and
expenses when they are incurred
28.Cash Basis Accounting: Reporting income when the cash is
received and expenses when the cash is paid.
29.LLC (Limited Liability Company): Limited liability, pass through
2/
11
