NAB RCAL Practice Exam 2026 | Verified
Answers | Exam Prep
Breakeven Point? - correct Answerstotal cost = total revenue
Working capital ratio - correct Answerscurrent assets / current liabilities
Acid-test (quick) ratio - correct Answers(cash + AR + short-term investments) / current
liabilities
debt to assets ratio - correct Answerstotal liabilities/total assets
FTE (full time equivalent) - correct Answerstotal number of hours per employee in a
week / 40 (i.e. 12+14+40+30 div. by 40)
Profit margin - correct AnswersNOI/Tot. Revenue. Defined as "income to sales. 2 types,
gross prof margin and net prof margin)
Net Operating Income (NOI) - correct AnswersTotal (gross) Revenue - operating
expenses
Occupancy rate - correct Answers(# of resident days/facility beds) x 365
HCS - correct AnswersHazard Communication Standard. OSHA standard requiring
employers to inform workers of potentially hazardous chemicals.
Balance sheet formula - correct AnswersAssets = Liabilities + Shareholders Equity
EBITDA - correct AnswersEarnings before interest, taxes, depreciation, and
amortization
Amortization - correct Answersthe reduction of a loan balance through payments made
over a period of time
revenue cycle management - correct Answersresident needs->service planning-
>staffing->billing/collections->
FICA SS Tax and Medicare Tax - correct Answers6.2% and 1.45%
4 elements of a valid contract - correct Answersagreement, consideration, contractual
capacity, legality (in writing) "ACCL"
Liability insurance usually covers.. - correct AnswersBodily injury and property damage
, Lock out tag out - correct AnswersFor all electrical equipment
safe electrical practices - correct AnswersNational Electrical Code or NEC
Following NFPA Life Safety Code - correct Answersfire plan, regular fire drills,
detectors, training on procedure, non combustable furnishing/draperies
Extinguisher class A - correct Answersordinary combustibles such as wood/paper
Extinguisher Class B - correct AnswersFor flammable liquids and gas fires (grease,
paint)
Extinguisher class C - correct AnswersLive electrical equipment (panelling)
Extinguisher class D - correct AnswersCombustable metals (aluminum)
Extinguisher class K - correct AnswersCommercial cooking equipment (cooking oil,
animal fats)
PASS (Fire Safety) - correct AnswersP - Pull the pin.
A - Aim at the base of the fire, not at the flames.
S - Squeeze the lever.
S - Sweep the nozzle from side to side.
R.A.C.E. (Fire safety) - correct Answersrescue, alarm, contain, extinguish
Accrual Basis Accounting - correct Answersreporting income when it is earned and
expenses when they are incurred
Cash Basis Accounting - correct AnswersReporting income when the cash is received
and expenses when the cash is paid.
LLC (Limited Liability Company) - correct AnswersLimited liability, pass through income
taxation, flexibility
S corporation - correct AnswersA unique government creation that looks like a
corporation but is taxed like sole proprietorships and partnerships
Net Worth Formula - correct AnswersAssets - Liabilities
Dementia Living Environment - correct AnswersResidential living with clinical aspects.
safe, quiet, secured
Answers | Exam Prep
Breakeven Point? - correct Answerstotal cost = total revenue
Working capital ratio - correct Answerscurrent assets / current liabilities
Acid-test (quick) ratio - correct Answers(cash + AR + short-term investments) / current
liabilities
debt to assets ratio - correct Answerstotal liabilities/total assets
FTE (full time equivalent) - correct Answerstotal number of hours per employee in a
week / 40 (i.e. 12+14+40+30 div. by 40)
Profit margin - correct AnswersNOI/Tot. Revenue. Defined as "income to sales. 2 types,
gross prof margin and net prof margin)
Net Operating Income (NOI) - correct AnswersTotal (gross) Revenue - operating
expenses
Occupancy rate - correct Answers(# of resident days/facility beds) x 365
HCS - correct AnswersHazard Communication Standard. OSHA standard requiring
employers to inform workers of potentially hazardous chemicals.
Balance sheet formula - correct AnswersAssets = Liabilities + Shareholders Equity
EBITDA - correct AnswersEarnings before interest, taxes, depreciation, and
amortization
Amortization - correct Answersthe reduction of a loan balance through payments made
over a period of time
revenue cycle management - correct Answersresident needs->service planning-
>staffing->billing/collections->
FICA SS Tax and Medicare Tax - correct Answers6.2% and 1.45%
4 elements of a valid contract - correct Answersagreement, consideration, contractual
capacity, legality (in writing) "ACCL"
Liability insurance usually covers.. - correct AnswersBodily injury and property damage
, Lock out tag out - correct AnswersFor all electrical equipment
safe electrical practices - correct AnswersNational Electrical Code or NEC
Following NFPA Life Safety Code - correct Answersfire plan, regular fire drills,
detectors, training on procedure, non combustable furnishing/draperies
Extinguisher class A - correct Answersordinary combustibles such as wood/paper
Extinguisher Class B - correct AnswersFor flammable liquids and gas fires (grease,
paint)
Extinguisher class C - correct AnswersLive electrical equipment (panelling)
Extinguisher class D - correct AnswersCombustable metals (aluminum)
Extinguisher class K - correct AnswersCommercial cooking equipment (cooking oil,
animal fats)
PASS (Fire Safety) - correct AnswersP - Pull the pin.
A - Aim at the base of the fire, not at the flames.
S - Squeeze the lever.
S - Sweep the nozzle from side to side.
R.A.C.E. (Fire safety) - correct Answersrescue, alarm, contain, extinguish
Accrual Basis Accounting - correct Answersreporting income when it is earned and
expenses when they are incurred
Cash Basis Accounting - correct AnswersReporting income when the cash is received
and expenses when the cash is paid.
LLC (Limited Liability Company) - correct AnswersLimited liability, pass through income
taxation, flexibility
S corporation - correct AnswersA unique government creation that looks like a
corporation but is taxed like sole proprietorships and partnerships
Net Worth Formula - correct AnswersAssets - Liabilities
Dementia Living Environment - correct AnswersResidential living with clinical aspects.
safe, quiet, secured
