NAB RCAL Exam Study Guide 2023 Complete Solution
Breakeven Point?
total cost = total revenue
Working capital ratio
current assets / current liabilities
Acid-test (quick) ratio
(cash + AR + short-term investments) / current liabilities
debt to assets ratio
total liabilities/total assets
FTE (full time equivalent)
total number of hours per employee in a week / 40 (i.e. 12+14+40+30 div. by 40)
Profit margin
NOI/Tot. Revenue. Defined as "income to sales. 2 types, gross prof margin and net prof
margin)
Net Operating Income (NOI)
Total (gross) Revenue - operating expenses
Occupancy rate
(# of resident days/facility beds) x 365
HCS
Hazard Communication Standard. OSHA standard requiring employers to inform
workers of potentially hazardous chemicals.
Balance sheet formula
Assets = Liabilities + Shareholders Equity
EBITDA
Earnings before interest, taxes, depreciation, and amortization
Amortization
the reduction of a loan balance through payments made over a period of time
revenue cycle management
resident needs->service planning->staffing->billing/collections->
FICA SS Tax and Medicare Tax
6.2% and 1.45%
4 elements of a valid contract
agreement, consideration, contractual capacity, legality (in writing) "ACCL"
Liability insurance usually covers..
Bodily injury and property damage
Lock out tag out
For all electrical equipment
safe electrical practices
National Electrical Code or NEC
Following NFPA Life Safety Code
fire plan, regular fire drills, detectors, training on procedure, non combustable
furnishing/draperies
Extinguisher class A
ordinary combustibles such as wood/paper
Extinguisher Class B
, For flammable liquids and gas fires (grease, paint)
Extinguisher class C
Live electrical equipment (panelling)
Extinguisher class D
Combustable metals (aluminum)
Extinguisher class K
Commercial cooking equipment (cooking oil, animal fats)
PASS (Fire Safety)
P - 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)
rescue, alarm, contain, extinguish
Accrual Basis Accounting
reporting income when it is earned and expenses when they are incurred
Cash Basis Accounting
Reporting income when the cash is received and expenses when the cash is paid.
LLC (Limited Liability Company)
Limited liability, pass through income taxation, flexibility
S corporation
A unique government creation that looks like a corporation but is taxed like sole
proprietorships and partnerships
Net Worth Formula
Assets - Liabilities
Dementia Living Environment
Residential living with clinical aspects. safe, quiet, secured
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
Corporate Compliance Programs
assist providers and their agents and develop effective internal controls that promote
adherence to applicable federal and state law
Leadership (vs. management)
produces change and movement, motivates, communicates goals, creates vision
Management (vs leadership)
Produces order and consistency, agenda, timetable, structure, develops incentives,
corrective actions, etc.
Mission Statement
Public document, short (tshirt), purpose of ALF
Vision statement
Usually private internal documents, expresses what the organization should become
using the mission, where it wants to go strategically.
Breakeven Point?
total cost = total revenue
Working capital ratio
current assets / current liabilities
Acid-test (quick) ratio
(cash + AR + short-term investments) / current liabilities
debt to assets ratio
total liabilities/total assets
FTE (full time equivalent)
total number of hours per employee in a week / 40 (i.e. 12+14+40+30 div. by 40)
Profit margin
NOI/Tot. Revenue. Defined as "income to sales. 2 types, gross prof margin and net prof
margin)
Net Operating Income (NOI)
Total (gross) Revenue - operating expenses
Occupancy rate
(# of resident days/facility beds) x 365
HCS
Hazard Communication Standard. OSHA standard requiring employers to inform
workers of potentially hazardous chemicals.
Balance sheet formula
Assets = Liabilities + Shareholders Equity
EBITDA
Earnings before interest, taxes, depreciation, and amortization
Amortization
the reduction of a loan balance through payments made over a period of time
revenue cycle management
resident needs->service planning->staffing->billing/collections->
FICA SS Tax and Medicare Tax
6.2% and 1.45%
4 elements of a valid contract
agreement, consideration, contractual capacity, legality (in writing) "ACCL"
Liability insurance usually covers..
Bodily injury and property damage
Lock out tag out
For all electrical equipment
safe electrical practices
National Electrical Code or NEC
Following NFPA Life Safety Code
fire plan, regular fire drills, detectors, training on procedure, non combustable
furnishing/draperies
Extinguisher class A
ordinary combustibles such as wood/paper
Extinguisher Class B
, For flammable liquids and gas fires (grease, paint)
Extinguisher class C
Live electrical equipment (panelling)
Extinguisher class D
Combustable metals (aluminum)
Extinguisher class K
Commercial cooking equipment (cooking oil, animal fats)
PASS (Fire Safety)
P - 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)
rescue, alarm, contain, extinguish
Accrual Basis Accounting
reporting income when it is earned and expenses when they are incurred
Cash Basis Accounting
Reporting income when the cash is received and expenses when the cash is paid.
LLC (Limited Liability Company)
Limited liability, pass through income taxation, flexibility
S corporation
A unique government creation that looks like a corporation but is taxed like sole
proprietorships and partnerships
Net Worth Formula
Assets - Liabilities
Dementia Living Environment
Residential living with clinical aspects. safe, quiet, secured
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
Corporate Compliance Programs
assist providers and their agents and develop effective internal controls that promote
adherence to applicable federal and state law
Leadership (vs. management)
produces change and movement, motivates, communicates goals, creates vision
Management (vs leadership)
Produces order and consistency, agenda, timetable, structure, develops incentives,
corrective actions, etc.
Mission Statement
Public document, short (tshirt), purpose of ALF
Vision statement
Usually private internal documents, expresses what the organization should become
using the mission, where it wants to go strategically.
