NAB RCAL Exam

NAB RCAL Exam 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 Leadership (vs. management) Ans- produces change and movement, motivates, communicates goals, creates vision Management (vs leadership) Ans- Produces order and consistency, agenda, timetable, structure, develops incentives, corrective actions, etc. Mission Statement Ans- Public document, short (tshirt), purpose of ALF Vision statement Ans- Usually private internal documents, expresses what the organization should become using the mission, where it wants to go strategically. Organizational Values Ans- accompany mission statement, describes key behaviors that are expected of staff Cash Flow Ans- Cash receipts less cash disbursements from a given operation or set of operations from a period of time Balance sheet Ans- Snapshot/point in time of what a company owns and owes. Summarizes assets, liabilities and shareholder equity at a specific point in time. Income statement (or statement of financial position) Ans- How much revenue and profit generated over a certain period of time Interest coverage Ans- What portion of debt interest is covered by a company cash flow situation (EBITDA/Interest expense) Capital Ans- typically $500 or more, 1 year or more life. Money invested in company. chart of accounts Ans- A list of every account (5 groups: ass, Lia, capital, Rev, expenses) Variable cost Ans- Fluctuate directly with changes in census (i.e. food, salary) Fixed cost Ans- Do not relate to changes in census. Direct cost Ans- Cost that are directly attributable to providing resident care (i.e. salaries, payroll, pay taxes, benefits, supplies) Indirect cost Ans- i.e. administrative salary, depreciation 5 steps of budgeting Ans- Assessing environment, Programming, Developing operating budget, Building cash budget, Determing capital budget How often should goals and objectives be evaluated? Ans- Annual basis, at least Patient Self-Determination Act of 1990 Ans- protects patient rights including the right to agree to or refuse medical treatment (gives patients right to choose health care decisions when entering hospital) DPOA vs POA Ans- DPOA just includes language that means the documents covers individual when they become incapacitated Quality Assurance Ans- looks at actions to ensure services conform to standards Team building is a key component of which management style? Ans- Participatory (encourages managers to share knowledge, work together) advance directives Ans- A legal document designed to indicate a person's wishes regarding care in case of a terminal illness or during the dying process living will Ans- A document that indicates what medical intervention an individual wants if he or she becomes incapable of expressing those wishes. advisory board Ans- used by board of directors/governing body to provide guidance regarding policy and procedure Board of Directors/Governing body Ans- hires admin, delegates management, develops mission and vision, fiduciary responsibility 4 components of leadership (influencing) Ans- Process, Influence others, occurs in groups, attain goals and direct group provides sweeping new legal protection for employees who report corporate misconduct. Protects whistleblowers Ans- Sarbanes-Oxley Act of 2002 Applies to employers of 15 or more. Race, color, religion, gender, pregnancy, or national origin. AnsCivil Rights Act (1964) Title VII Sexual harassment - unwelcome sexual advances, does not have to be the harassed to report. Must be unwelcome, implicitly or explicitly affects an individuals employment, work performance Ans- Civil Rights Act 1991 Bans age discrimination for jobs unless age is related to job performance. 40 yrs or older. Ans- Age Discrimination in Employment Act of 1967 15 employees or more. Reasonably remove barriers so disabled can be accommodated Ans- Americans with Disabilities Act (ADA) of 1990 continues healthcare benefits to individuals and families for limited period of time such as job loss, reduced hours, death, divorce, etc. Qualified individuals may have to pay entire premium AnsConsolidated Omnibus Budget Reconciliation Act (COBRA) Act that limits the amount of wages that can be garnished or withheld in any one week by an employer to satisfy creditors. Ans- Consumer Credit Protection Act Minimum wage, child labor laws, overtime Ans- Fair Labor Standards Act (FLSA) Protections for coverage under group health plans, prohibit discrimination against employees based on health status Ans- HIPPA (Health Insurance Portability and Accountability Act) 12 weeks unpaid if an employee has worked 1250 hrs within last 12 months. Covers -serious health condition -care for family member. -birth or adoption Ans- Family and Medical Leave Act (FMLA) Federal law requiring employers to verify and maintain records on applicants' legal rights to work in the United States. 1-9 Form complete within 3 days of employment, retain copy 3 years or 1 year following terminiation Ans- Immigration Reform and Control Act of 1986 includes "general duty clause" that requires all employers to maintain a workplace that is free from recognized hazards that would cause injury/death to employees Ans- Occupational Safety and Health Administration (OSHA) Maintain log of certain injuries, illnesses. Report certain deaths and multiple hospitalizations, post supplementary records on an annual basis. Employer cannot fire employee who is uncomfy at work. Ans- Osha requirements a ratio that expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next Ans- Yield Ratio