NAB RCAL EXAM 2024| REAL EXAM QUESTIONS WITH
COMPREHENSIVE ANSWERS| LATEST UPDATE| EXPERT
VERIFIED FOR GUARANTEED PASS
Accrual Basis Accounting - CORRECT ANSWER - reporting income when it is earned and
expenses when they are incurred
Cash Basis Accounting - CORRECT ANSWER - Reporting income when the cash is received
and expenses when the cash is paid.
LLC (Limited Liability Company) - CORRECT ANSWER - Limited liability, pass through
income taxation, flexibility
S corporation - CORRECT ANSWER - A unique government creation that looks like a
corporation but is taxed like sole proprietorships and partnerships
Net Worth Formula - CORRECT ANSWER - Assets - Liabilities
Dementia Living Environment - CORRECT ANSWER - Residential living with clinical aspects.
safe, quiet, secured
Effective Claims Management for working with insurance agencies - CORRECT ANSWER -
components of the claims handling process include developing strategies to cut costs and reduce
fraud while keeping customers satisfied
Corporate Compliance Programs - CORRECT ANSWER - assist providers and their agents and
develop effective internal controls that promote adherence to applicable federal and state law
Leadership (vs. management) - CORRECT ANSWER - produces change and movement,
motivates, communicates goals, creates vision
Management (vs leadership) - CORRECT ANSWER - Produces order and consistency, agenda,
timetable, structure, develops incentives, corrective actions, etc.
,Mission Statement - CORRECT ANSWER - Public document, short (tshirt), purpose of ALF
Vision statement - CORRECT ANSWER - Usually private internal documents, expresses what
the organization should become using the mission, where it wants to go strategically.
Organizational Values - CORRECT ANSWER - accompany mission statement, describes key
behaviors that are expected of staff
Cash Flow - CORRECT ANSWER - Cash receipts less cash disbursements from a given
operation or set of operations from a period of time
Balance sheet - CORRECT ANSWER - 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) - CORRECT ANSWER - How much
revenue and profit generated over a certain period of time
Interest coverage - CORRECT ANSWER - What portion of debt interest is covered by a
company cash flow situation (EBITDA/Interest expense)
Capital - CORRECT ANSWER - typically $500 or more, 1 year or more life. Money invested in
company.
chart of accounts - CORRECT ANSWER - A list of every account (5 groups: ass, Lia, capital,
Rev, expenses)
Variable cost - CORRECT ANSWER - Fluctuate directly with changes in census (i.e. food,
salary)
Fixed cost - CORRECT ANSWER - Do not relate to changes in census.
, Direct cost - CORRECT ANSWER - Cost that are directly attributable to providing resident care
(i.e. salaries, payroll, pay taxes, benefits, supplies)
Indirect cost - CORRECT ANSWER - i.e. administrative salary, depreciation
5 steps of budgeting - CORRECT ANSWER - Assessing environment, Programming,
Developing operating budget, Building cash budget, Determing capital budget
How often should goals and objectives be evaluated? - CORRECT ANSWER - Annual basis, at
least
Patient Self-Determination Act of 1990 - CORRECT ANSWER - 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 - CORRECT ANSWER - DPOA just includes language that means the
documents covers individual when they become incapacitated
Quality Assurance - CORRECT ANSWER - looks at actions to ensure services conform to
standards
Team building is a key component of which management style? -) CORRECT ANSWER -
Participatory (encourages managers to share knowledge, work together)
advance directives - CORRECT ANSWER - 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 - CORRECT ANSWER - A document that indicates what medical intervention an
individual wants if he or she becomes incapable of expressing those wishes.
COMPREHENSIVE ANSWERS| LATEST UPDATE| EXPERT
VERIFIED FOR GUARANTEED PASS
Accrual Basis Accounting - CORRECT ANSWER - reporting income when it is earned and
expenses when they are incurred
Cash Basis Accounting - CORRECT ANSWER - Reporting income when the cash is received
and expenses when the cash is paid.
LLC (Limited Liability Company) - CORRECT ANSWER - Limited liability, pass through
income taxation, flexibility
S corporation - CORRECT ANSWER - A unique government creation that looks like a
corporation but is taxed like sole proprietorships and partnerships
Net Worth Formula - CORRECT ANSWER - Assets - Liabilities
Dementia Living Environment - CORRECT ANSWER - Residential living with clinical aspects.
safe, quiet, secured
Effective Claims Management for working with insurance agencies - CORRECT ANSWER -
components of the claims handling process include developing strategies to cut costs and reduce
fraud while keeping customers satisfied
Corporate Compliance Programs - CORRECT ANSWER - assist providers and their agents and
develop effective internal controls that promote adherence to applicable federal and state law
Leadership (vs. management) - CORRECT ANSWER - produces change and movement,
motivates, communicates goals, creates vision
Management (vs leadership) - CORRECT ANSWER - Produces order and consistency, agenda,
timetable, structure, develops incentives, corrective actions, etc.
,Mission Statement - CORRECT ANSWER - Public document, short (tshirt), purpose of ALF
Vision statement - CORRECT ANSWER - Usually private internal documents, expresses what
the organization should become using the mission, where it wants to go strategically.
Organizational Values - CORRECT ANSWER - accompany mission statement, describes key
behaviors that are expected of staff
Cash Flow - CORRECT ANSWER - Cash receipts less cash disbursements from a given
operation or set of operations from a period of time
Balance sheet - CORRECT ANSWER - 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) - CORRECT ANSWER - How much
revenue and profit generated over a certain period of time
Interest coverage - CORRECT ANSWER - What portion of debt interest is covered by a
company cash flow situation (EBITDA/Interest expense)
Capital - CORRECT ANSWER - typically $500 or more, 1 year or more life. Money invested in
company.
chart of accounts - CORRECT ANSWER - A list of every account (5 groups: ass, Lia, capital,
Rev, expenses)
Variable cost - CORRECT ANSWER - Fluctuate directly with changes in census (i.e. food,
salary)
Fixed cost - CORRECT ANSWER - Do not relate to changes in census.
, Direct cost - CORRECT ANSWER - Cost that are directly attributable to providing resident care
(i.e. salaries, payroll, pay taxes, benefits, supplies)
Indirect cost - CORRECT ANSWER - i.e. administrative salary, depreciation
5 steps of budgeting - CORRECT ANSWER - Assessing environment, Programming,
Developing operating budget, Building cash budget, Determing capital budget
How often should goals and objectives be evaluated? - CORRECT ANSWER - Annual basis, at
least
Patient Self-Determination Act of 1990 - CORRECT ANSWER - 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 - CORRECT ANSWER - DPOA just includes language that means the
documents covers individual when they become incapacitated
Quality Assurance - CORRECT ANSWER - looks at actions to ensure services conform to
standards
Team building is a key component of which management style? -) CORRECT ANSWER -
Participatory (encourages managers to share knowledge, work together)
advance directives - CORRECT ANSWER - 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 - CORRECT ANSWER - A document that indicates what medical intervention an
individual wants if he or she becomes incapable of expressing those wishes.
