NAB Finance Test Questions with
All Correct Answers
What drives revenue? - Answer-Census
What percent does Med A reimburse? - Answer-14%
What program pays for 57% of stays? - Answer-Medicaid
There is no federal reimbursement program for - Answer-ALF
In most states, the Medicaid reimbursement level is - Answer-lower than the cost of
care
Number of nursing homes closed since beginning of the century? - Answer-700
One of the major factors affecting census in nursing homes? - Answer-Number of
alternate programs available to the frail and elderly (home health/adult day)
Home and Community Based Services (HCBS) Waiver - Answer-Section 1915 of SSA:
allows all the states to develop and implement programs that would offer alternatives to
institutional placements, such as nursing home for Medicaid-eligible persons. (Ronald
Reagan)
Financial Management is - Answer-process of ensuring that materials and other
resources of the facility are bought and used efficiently and economically
PRIMARY value of Financial Management - Answer-provides accounting information
the administrator can use to make decisions and manage the facility
Accounting - Answer-includes book keeping. Involves budgeting, financial reports,
special studies, auditing, and designing accounting systems
Assets - Answer-Things of value, things owned, such as cash, equipment, real estate,
and AR.
Current Asset - Answer-cash or other short-lived assets expected to be converted to
cash or depleted in business operations, usually within 1 year. (AR, Notes Receivable,
Certificates of Deposit)
, Fixed/Long-lived assets - Answer-buildings, land, equipment, etc. to be used in the
business on a long-term basis (capital assets)
Tangible assets - Answer-have physical characteristics, they can be SEEN and
TOUCHED. (buildings, equipment, and other resources) They will wear out and
deteriorate and are DEPRECIABLE
Intangible Assets - Answer-noncurrent, non-physical assets including leaseholds,
copyrights, patents, and goodwill.
Goodwill - Answer-intangible asset to a facility that produces superior service and
earnings and has high resident loyalty. Marketable when a facility is sold.
Book Value - Answer-cost of depreciable asset - accumulated depreciation. (book value
per share means stockholders equity per share)
Bookkeeping - Answer-initial recording of business transactions. Done by a clerk.
Capital - Answer-embracing funds required from several different sources. Includes
funds invested, income from sale of shares, donation of cash or land, and retained
earnings.
Investment Capital - Answer-cash used to purchase real estate and equipment, and to
build - used to produce operational revenues.
Working Capital - Answer-excess of current assets over current liabilities. Measure of
facility's ability to meet obligations
Capital Expenditures - Answer-increase the book value of facility assets. Added to asset
account or charged to accumulated depreciation account.
Revenue Expenditures - Answer-are immediately expensed out. Recurring and minor
repairs that neither add to the quality of service-rendering abilities of the asset or extend
its estimated life.
Earnings - Answer-generated revenue which is generally not recognized until all
activities to create it have been recognized
Gross earnings - Answer-total revenue, or income, generated
Net earnings/Net profit - Answer-Revenues - Expenses (primary focus of financial
accounting)
Gross Profit - Answer-Net sales - Cost of Goods Sold
All Correct Answers
What drives revenue? - Answer-Census
What percent does Med A reimburse? - Answer-14%
What program pays for 57% of stays? - Answer-Medicaid
There is no federal reimbursement program for - Answer-ALF
In most states, the Medicaid reimbursement level is - Answer-lower than the cost of
care
Number of nursing homes closed since beginning of the century? - Answer-700
One of the major factors affecting census in nursing homes? - Answer-Number of
alternate programs available to the frail and elderly (home health/adult day)
Home and Community Based Services (HCBS) Waiver - Answer-Section 1915 of SSA:
allows all the states to develop and implement programs that would offer alternatives to
institutional placements, such as nursing home for Medicaid-eligible persons. (Ronald
Reagan)
Financial Management is - Answer-process of ensuring that materials and other
resources of the facility are bought and used efficiently and economically
PRIMARY value of Financial Management - Answer-provides accounting information
the administrator can use to make decisions and manage the facility
Accounting - Answer-includes book keeping. Involves budgeting, financial reports,
special studies, auditing, and designing accounting systems
Assets - Answer-Things of value, things owned, such as cash, equipment, real estate,
and AR.
Current Asset - Answer-cash or other short-lived assets expected to be converted to
cash or depleted in business operations, usually within 1 year. (AR, Notes Receivable,
Certificates of Deposit)
, Fixed/Long-lived assets - Answer-buildings, land, equipment, etc. to be used in the
business on a long-term basis (capital assets)
Tangible assets - Answer-have physical characteristics, they can be SEEN and
TOUCHED. (buildings, equipment, and other resources) They will wear out and
deteriorate and are DEPRECIABLE
Intangible Assets - Answer-noncurrent, non-physical assets including leaseholds,
copyrights, patents, and goodwill.
Goodwill - Answer-intangible asset to a facility that produces superior service and
earnings and has high resident loyalty. Marketable when a facility is sold.
Book Value - Answer-cost of depreciable asset - accumulated depreciation. (book value
per share means stockholders equity per share)
Bookkeeping - Answer-initial recording of business transactions. Done by a clerk.
Capital - Answer-embracing funds required from several different sources. Includes
funds invested, income from sale of shares, donation of cash or land, and retained
earnings.
Investment Capital - Answer-cash used to purchase real estate and equipment, and to
build - used to produce operational revenues.
Working Capital - Answer-excess of current assets over current liabilities. Measure of
facility's ability to meet obligations
Capital Expenditures - Answer-increase the book value of facility assets. Added to asset
account or charged to accumulated depreciation account.
Revenue Expenditures - Answer-are immediately expensed out. Recurring and minor
repairs that neither add to the quality of service-rendering abilities of the asset or extend
its estimated life.
Earnings - Answer-generated revenue which is generally not recognized until all
activities to create it have been recognized
Gross earnings - Answer-total revenue, or income, generated
Net earnings/Net profit - Answer-Revenues - Expenses (primary focus of financial
accounting)
Gross Profit - Answer-Net sales - Cost of Goods Sold
