NAB RCAL EXAM QUESTIONS AND
ANSWERS
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
ANSWERS
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
