NAB RCAL Exam
Breakeven Point? - Answer -total cost = total revenue
Working capital ratio - Answer -current assets / current liabilities
Acid-test (quick) ratio - Answer -(cash + AR + short-term investments) / current liabilities
debt to assets ratio - Answer -total liabilities/total assets
FTE (full time equivalent) - Answer -total number of hours per employee in a week / 40 (i.e.
12+14+40+30 div. by 40)
Profit margin - Answer -NOI/Tot. Revenue. Defined as "income to sales. 2 types, gross prof margin and
net prof margin)
Net Operating Income (NOI) - Answer -Total (gross) Revenue - operating expenses
Occupancy rate - Answer -(# of resident days/facility beds) x 365
, HCS - Answer -Hazard Communication Standard. OSHA standard requiring employers to inform workers
of potentially hazardous chemicals.
Balance sheet formula - Answer -Assets = Liabilities + Shareholders Equity
EBITDA - Answer -Earnings before interest, taxes, depreciation, and amortization
Amortization - Answer -the reduction of a loan balance through payments made over a period of time
revenue cycle management - Answer -resident needs->service planning->staffing->billing/collections->
FICA SS Tax and Medicare Tax - Answer -6.2% and 1.45%
4 elements of a valid contract - Answer -agreement, consideration, contractual capacity, legality (in
writing) "ACCL"
Liability insurance usually covers.. - Answer -Bodily injury and property damage
Lock out tag out - Answer -For all electrical equipment
safe electrical practices - Answer -National Electrical Code or NEC
Following NFPA Life Safety Code - Answer -fire plan, regular fire drills, detectors, training on procedure,
non combustable furnishing/draperies
Extinguisher class A - Answer -ordinary combustibles such as wood/paper
Extinguisher Class B - Answer -For flammable liquids and gas fires (grease, paint)
Extinguisher class C - Answer -Live electrical equipment (panelling)
Breakeven Point? - Answer -total cost = total revenue
Working capital ratio - Answer -current assets / current liabilities
Acid-test (quick) ratio - Answer -(cash + AR + short-term investments) / current liabilities
debt to assets ratio - Answer -total liabilities/total assets
FTE (full time equivalent) - Answer -total number of hours per employee in a week / 40 (i.e.
12+14+40+30 div. by 40)
Profit margin - Answer -NOI/Tot. Revenue. Defined as "income to sales. 2 types, gross prof margin and
net prof margin)
Net Operating Income (NOI) - Answer -Total (gross) Revenue - operating expenses
Occupancy rate - Answer -(# of resident days/facility beds) x 365
, HCS - Answer -Hazard Communication Standard. OSHA standard requiring employers to inform workers
of potentially hazardous chemicals.
Balance sheet formula - Answer -Assets = Liabilities + Shareholders Equity
EBITDA - Answer -Earnings before interest, taxes, depreciation, and amortization
Amortization - Answer -the reduction of a loan balance through payments made over a period of time
revenue cycle management - Answer -resident needs->service planning->staffing->billing/collections->
FICA SS Tax and Medicare Tax - Answer -6.2% and 1.45%
4 elements of a valid contract - Answer -agreement, consideration, contractual capacity, legality (in
writing) "ACCL"
Liability insurance usually covers.. - Answer -Bodily injury and property damage
Lock out tag out - Answer -For all electrical equipment
safe electrical practices - Answer -National Electrical Code or NEC
Following NFPA Life Safety Code - Answer -fire plan, regular fire drills, detectors, training on procedure,
non combustable furnishing/draperies
Extinguisher class A - Answer -ordinary combustibles such as wood/paper
Extinguisher Class B - Answer -For flammable liquids and gas fires (grease, paint)
Extinguisher class C - Answer -Live electrical equipment (panelling)
