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