NAB RCAL
NAB RCAL Exam Questions And Correct
Detailed Answers
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.
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, NAB RCAL
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
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NAB RCAL Exam Questions And Correct
Detailed Answers
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.
PAGE 1 OF 11
, NAB RCAL
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
PAGE 2 OF 11
