NAB RCAL Exam Study Guide 2023, Exams of Accounting

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NAB RCAL Exam Study

Guide 2023 Questions

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1. Breakeven Point? - ✅✅ total cost = total revenue
2. Working capital ratio - ✅✅ current assets / current liabilities
3. Acid-test (quick) ratio - ✅✅ (cash + AR + short-term investments) / current liabilities

4. debt to assets ratio - ✅✅ total liabilities/total assets
5. FTE (full time equivalent) - ✅✅ total number of hours per employee in a week / 40 (i.e. 12+14+40+30 div. by 40)
6. Profit margin - ✅✅ NOI/Tot. Revenue. Defined as "income to sales. 2 types, gross prof margin and net prof margin)

7. Net Operating Income (NOI) - ✅✅ Total (gross) Revenue - operating expenses
8. Occupancy rate - ✅✅ (# of resident days/facility beds) x 365
9. HCS - ✅✅ Hazard Communication Standard. OSHA standard requiring employers to inform workers of potentially hazardous chemicals.
10. Balance sheet formula - ✅✅ Assets = Liabilities + Shareholders Equity

11. EBITDA - ✅✅ Earnings before interest, taxes, depreciation, and amortization
12. Amortization - ✅✅ the reduction of a loan balance through payments made over a period of time
13. revenue cycle management - ✅✅ resident needs->service planning-

    staffing->billing/collections->

14. FICA SS Tax and Medicare Tax - ✅✅ 6.2% and 1.45%

15. 4 elements of a valid contract - ✅✅ agreement, consideration, contractual capacity, legality (in writing) "ACCL"
16. Liability insurance usually covers..
    • ✅✅ Bodily injury and property damage
17. Lock out tag out - ✅✅ For all electrical equipment
18. safe electrical practices - ✅✅ National Electrical Code or NEC

19. Following NFPA Life Safety Code - ✅✅ fire plan, regular fire drills, detectors, training on procedure, non combustable furnishing/draperies
20. Extinguisher class A - ✅✅ ordinary combustibles such as wood/paper
21. Extinguisher Class B - ✅✅ For flammable liquids and gas fires (grease, paint)
22. Extinguisher class C - ✅✅ Live electrical equipment (panelling)

23. Extinguisher class D - ✅✅ Combustable metals (aluminum)
24. Extinguisher class K - ✅✅ Commercial cooking equipment (cooking oil, animal fats)
25. PASS (Fire Safety) - ✅✅ P - Pull the pin.
26. A - Aim at the base of the fire, not at the flames.
27. S - Squeeze the lever.

28. S - Sweep the nozzle from side to side.
29. R.A.C.E. (Fire safety) - ✅✅ rescue, alarm, contain, extinguish
30. Accrual Basis Accounting - ✅✅ reporting income when it is earned and expenses when they are incurred
31. Cash Basis Accounting - ✅✅ Reporting income when the cash is received and expenses when the cash is paid.

32. LLC (Limited Liability Company) - ✅✅ Limited liability, pass through income taxation, flexibility
33. S corporation - ✅✅ A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships
34. Net Worth Formula - ✅✅ Assets - Liabilities
35. Dementia Living Environment - ✅✅ Residential living with clinical aspects. safe, quiet, secured

36. Effective Claims Management for working with insurance agencies - ✅✅ components of the claims handling process include developing strategies to cut costs and reduce fraud while keeping customers satisfied
37. Corporate Compliance Programs - ✅✅ assist providers and their agents and develop effective internal controls that promote adherence to applicable federal and state law
38. Leadership (vs. management) - ✅✅ produces change and movement,

motivates, communicates goals, creates vision

39. Management (vs leadership) - ✅✅ Produces order and consistency, agenda, timetable, structure, develops incentives, corrective actions, etc.
40. Mission Statement - ✅✅ Public document, short (tshirt), purpose of ALF
41. Vision statement - ✅✅ Usually private internal documents, expresses what the organization

should become using the mission, where it wants to go strategically.

42. Organizational Values - ✅✅ accompany mission statement, describes key behaviors that are expected of staff
43. Cash Flow - ✅✅ Cash receipts less cash disbursements from a given operation or set of operations from a period of time
44. Balance sheet - ✅✅ Snapshot/point in time of what a company owns and owes.

Summarizes assets, liabilities and shareholder equity at a specific point in time.

45. Income statement (or statement of financial position) - ✅✅ How much revenue and profit generated over a certain period of time
46. Interest coverage - ✅✅ What portion of debt interest is covered by a company cash flow situation (EBITDA/Interest expense)

47. Capital - ✅✅ typically $500 or more, 1 year or more life. Money invested in company.
48. chart of accounts - ✅✅ A list of every account (5 groups: ass, Lia, capital, Rev, expenses)
49. Variable cost - ✅✅ Fluctuate directly with changes in census (i.e. food, salary)
50. Fixed cost - ✅✅ Do not relate to changes in census.

51. Direct cost - ✅✅ Cost that are directly attributable to providing resident care (i.e. salaries, payroll, pay taxes, benefits, supplies)
52. Indirect cost - ✅✅ i.e. administrative salary, depreciation
53. 5 steps of budgeting - ✅✅ Assessing environment, Programming, Developing operating budget, Building cash budget, Determing capital budget

54. How often should goals and objectives be evaluated? - ✅✅ Annual basis, at least
55. Patient Self-Determination Act of 1990 - ✅✅ protects patient rights including the right to agree to or refuse medical treatment (gives patients right to choose health care decisions when entering hospital)
56. DPOA vs POA - ✅✅ DPOA just includes language that means the documents covers individual when they become incapacitated

57. Quality Assurance - ✅✅ looks at actions to ensure services conform to standards
58. Team building is a key component of which management style? - ✅✅ Participatory (encourages managers to share knowledge, work together)
59. advance directives - ✅✅ A legal document designed to indicate a person's wishes regarding care in case of a terminal illness or during the dying process

60. living will - ✅✅ A document that indicates what medical intervention an individual wants if he or she becomes incapable of expressing those wishes.
61. advisory board - ✅✅ used by board of directors/governing body to provide guidance regarding policy and procedure
62. Board of Directors/Governing body - ✅✅ hires admin, delegates management, develops mission and vision, fiduciary responsibility

63. 4 components of leadership (influencing) - ✅✅ Process, Influence others, occurs in groups, attain goals and direct group
64. provides sweeping new legal protection for employees who report corporate misconduct. Protects whistleblowers - ✅✅ Sarbanes-Oxley Act of 2002
65. Applies to employers of 15 or more. Race, color, religion, gender, pregnancy, or national origin. - ✅✅ Civil Rights Act (1964) Title VII

66. Sexual harassment - unwelcome sexual advances, does not have to be the harassed to report. Must be unwelcome, implicitly or explicitly affects an individuals employment, work performance - ✅✅ Civil Rights Act 1991
67. Bans age discrimination for jobs unless age is related to job performance. 40 yrs or older. - ✅✅ Age Discrimination in Employment Act of 1967
68. 15 employees or more. Reasonably remove barriers so

disabled can be accommodated - ✅✅ Americans with Disabilities Act (ADA) of 1990

69. continues healthcare benefits to individuals and families for limited period of time such as job loss, reduced hours, death, divorce, etc. Qualified individuals may have to pay entire premium - ✅✅ Consolidated Omnibus Budget Reconciliation Act (COBRA)
70. Act that limits the amount of wages that can be garnished or withheld in any one week by an

employer to satisfy creditors. - ✅✅ Consumer Credit Protection Act

71. Minimum wage, child labor laws, overtime - ✅✅ Fair Labor Standards Act (FLSA)
72. Protections for coverage under group health plans, prohibit discrimination against employees based on health status - ✅✅ HIPPA (Health Insurance Portability and Accountability Act)
73. 12 weeks unpaid if an employee has worked 1250 hrs within last 12

months. Covers -serious health condition -care for family member. - birth or adoption - ✅✅ Family and Medical Leave Act (FMLA)

74. Federal law requiring employers to verify and maintain records on applicants' legal rights to work in the United States. 1-9 Form complete within 3 days of employment, retain copy 3 years or 1 year following terminiation - ✅✅ Immigration Reform and Control Act of 1986
75. includes "general duty clause" that requires all employers to

maintain a workplace that is free from recognized hazards that would cause injury/death to employees - ✅✅ Occupational Safety and Health Administration (OSHA)

76. Maintain log of certain injuries, illnesses. Report certain deaths and multiple hospitalizations, post supplementary records on an annual basis. Employer cannot fire employee who is uncomfy at work. - ✅✅ Osha requirements
77. a ratio that expresses the percentage of applicants who

successfully move from one stage of the recruitment and selection process to the next - ✅✅ Yield Ratio

78. Occurrence Based Policy - ✅✅ An "X"-based policy provides coverage for injuries arising out of incidents occurring during the period the policy was in effect, even if the policy subsequently expires or is not renewed by the policy-holder. With an "X" policy, it does not matter if you are covered when the suit is brought.