NAB RCAL Exam Study Questions and
Answers Top Graded 2024
Breakeven Point? - ANSWERS-total cost = total revenue
Working capital ratio - ANSWERS-current assets / current liabilities
Acid-test (quick) ratio - ANSWERS-(cash + AR + short-term investments) / current
liabilities
debt to assets ratio - ANSWERS-total liabilities/total assets
FTE (full time equivalent) - ANSWERS-total number of hours per employee in a week /
40 (i.e. 12+14+40+30 div. by 40)
Profit margin - ANSWERS-NOI/Tot. Revenue. Defined as "income to sales. 2 types,
gross prof margin and net prof margin)
Net Operating Income (NOI) - ANSWERS-Total (gross) Revenue - operating expenses
Occupancy rate - ANSWERS-(# of resident days/facility beds) x 365
HCS - ANSWERS-Hazard Communication Standard. OSHA standard requiring
employers to inform workers of potentially hazardous chemicals.
Balance sheet formula - ANSWERS-Assets = Liabilities + Shareholders Equity
EBITDA - ANSWERS-Earnings before interest, taxes, depreciation, and amortization
Amortization - ANSWERS-the reduction of a loan balance through payments made over
a period of time
revenue cycle management - ANSWERS-resident needs->service planning->staffing-
>billing/collections->
FICA SS Tax and Medicare Tax - ANSWERS-6.2% and 1.45%
4 elements of a valid contract - ANSWERS-agreement, consideration, contractual
capacity, legality (in writing) "ACCL"
Liability insurance usually covers.. - ANSWERS-Bodily injury and property damage
Lock out tag out - ANSWERS-For all electrical equipment
, safe electrical practices - ANSWERS-National Electrical Code or NEC
Following NFPA Life Safety Code - ANSWERS-fire plan, regular fire drills, detectors,
training on procedure, non combustable furnishing/draperies
Extinguisher class A - ANSWERS-ordinary combustibles such as wood/paper
Extinguisher Class B - ANSWERS-For flammable liquids and gas fires (grease, paint)
Extinguisher class C - ANSWERS-Live electrical equipment (panelling)
Extinguisher class D - ANSWERS-Combustable metals (aluminum)
Extinguisher class K - ANSWERS-Commercial cooking equipment (cooking oil, animal
fats)
PASS (Fire Safety) - ANSWERS-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) - ANSWERS-rescue, alarm, contain, extinguish
Accrual Basis Accounting - ANSWERS-reporting income when it is earned and
expenses when they are incurred
Cash Basis Accounting - ANSWERS-Reporting income when the cash is received and
expenses when the cash is paid.
LLC (Limited Liability Company) - ANSWERS-Limited liability, pass through income
taxation, flexibility
S corporation - ANSWERS-A unique government creation that looks like a corporation
but is taxed like sole proprietorships and partnerships
Net Worth Formula - ANSWERS-Assets - Liabilities
Dementia Living Environment - ANSWERS-Residential living with clinical aspects. safe,
quiet, secured
Effective Claims Management for working with insurance agencies - ANSWERS-
components of the claims handling process include developing strategies to cut costs
and reduce fraud while keeping customers satisfied
Answers Top Graded 2024
Breakeven Point? - ANSWERS-total cost = total revenue
Working capital ratio - ANSWERS-current assets / current liabilities
Acid-test (quick) ratio - ANSWERS-(cash + AR + short-term investments) / current
liabilities
debt to assets ratio - ANSWERS-total liabilities/total assets
FTE (full time equivalent) - ANSWERS-total number of hours per employee in a week /
40 (i.e. 12+14+40+30 div. by 40)
Profit margin - ANSWERS-NOI/Tot. Revenue. Defined as "income to sales. 2 types,
gross prof margin and net prof margin)
Net Operating Income (NOI) - ANSWERS-Total (gross) Revenue - operating expenses
Occupancy rate - ANSWERS-(# of resident days/facility beds) x 365
HCS - ANSWERS-Hazard Communication Standard. OSHA standard requiring
employers to inform workers of potentially hazardous chemicals.
Balance sheet formula - ANSWERS-Assets = Liabilities + Shareholders Equity
EBITDA - ANSWERS-Earnings before interest, taxes, depreciation, and amortization
Amortization - ANSWERS-the reduction of a loan balance through payments made over
a period of time
revenue cycle management - ANSWERS-resident needs->service planning->staffing-
>billing/collections->
FICA SS Tax and Medicare Tax - ANSWERS-6.2% and 1.45%
4 elements of a valid contract - ANSWERS-agreement, consideration, contractual
capacity, legality (in writing) "ACCL"
Liability insurance usually covers.. - ANSWERS-Bodily injury and property damage
Lock out tag out - ANSWERS-For all electrical equipment
, safe electrical practices - ANSWERS-National Electrical Code or NEC
Following NFPA Life Safety Code - ANSWERS-fire plan, regular fire drills, detectors,
training on procedure, non combustable furnishing/draperies
Extinguisher class A - ANSWERS-ordinary combustibles such as wood/paper
Extinguisher Class B - ANSWERS-For flammable liquids and gas fires (grease, paint)
Extinguisher class C - ANSWERS-Live electrical equipment (panelling)
Extinguisher class D - ANSWERS-Combustable metals (aluminum)
Extinguisher class K - ANSWERS-Commercial cooking equipment (cooking oil, animal
fats)
PASS (Fire Safety) - ANSWERS-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) - ANSWERS-rescue, alarm, contain, extinguish
Accrual Basis Accounting - ANSWERS-reporting income when it is earned and
expenses when they are incurred
Cash Basis Accounting - ANSWERS-Reporting income when the cash is received and
expenses when the cash is paid.
LLC (Limited Liability Company) - ANSWERS-Limited liability, pass through income
taxation, flexibility
S corporation - ANSWERS-A unique government creation that looks like a corporation
but is taxed like sole proprietorships and partnerships
Net Worth Formula - ANSWERS-Assets - Liabilities
Dementia Living Environment - ANSWERS-Residential living with clinical aspects. safe,
quiet, secured
Effective Claims Management for working with insurance agencies - ANSWERS-
components of the claims handling process include developing strategies to cut costs
and reduce fraud while keeping customers satisfied
