NAB RCAL Exam
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.
A - Aim at the base of the fire, not at the flames.
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S - Squeeze the lever.
S - Sweep the nozzle from side to side.
26. R.A.C.E. (Fire safety): rescue, alarm, contain, extinguish
27 Accrual Basis Accounting: reporting income when it is earned and expenses
when they are incurred
28. Cash Basis Accounting: Reporting income when the cash is received and
expenses when the cash is paid.
29. LLC (Limited Liability Company): Limited liability, pass through income
taxation, flexibility
30. S corporation: A unique government creation that looks like a corporation but
is taxed like sole proprietorships and partnerships
31. Net Worth Formula: Assets - Liabilities
32. Dementia Living Environment: Residential living with clinical aspects. safe,
quiet, secured
33. 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
34. Corporate Compliance Programs: assist providers and their agents and
develop effective internal controls that promote adherence to applicable federal
and state law
35. Leadership (vs. management): produces change and movement, motivates,
communicates goals, creates vision
36. Management (vs leadership): Produces order and consistency, agenda,
timetable, structure, develops incentives, corrective actions, etc.
37. Mission Statement: Public document, short (tshirt), purpose of ALF
38. Vision statement: Usually private internal documents, expresses what the
organization should become using the mission, where it wants to go
strategically.
39. Organizational Values: accompany mission statement, describes key
behaviors that are expected of staff
40. Cash Flow: Cash receipts less cash disbursements from a given operation or
set of operations from a period of time
41. 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.
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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.
A - Aim at the base of the fire, not at the flames.
1/7
, NAB RCAL Exam
.
S - Squeeze the lever.
S - Sweep the nozzle from side to side.
26. R.A.C.E. (Fire safety): rescue, alarm, contain, extinguish
27 Accrual Basis Accounting: reporting income when it is earned and expenses
when they are incurred
28. Cash Basis Accounting: Reporting income when the cash is received and
expenses when the cash is paid.
29. LLC (Limited Liability Company): Limited liability, pass through income
taxation, flexibility
30. S corporation: A unique government creation that looks like a corporation but
is taxed like sole proprietorships and partnerships
31. Net Worth Formula: Assets - Liabilities
32. Dementia Living Environment: Residential living with clinical aspects. safe,
quiet, secured
33. 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
34. Corporate Compliance Programs: assist providers and their agents and
develop effective internal controls that promote adherence to applicable federal
and state law
35. Leadership (vs. management): produces change and movement, motivates,
communicates goals, creates vision
36. Management (vs leadership): Produces order and consistency, agenda,
timetable, structure, develops incentives, corrective actions, etc.
37. Mission Statement: Public document, short (tshirt), purpose of ALF
38. Vision statement: Usually private internal documents, expresses what the
organization should become using the mission, where it wants to go
strategically.
39. Organizational Values: accompany mission statement, describes key
behaviors that are expected of staff
40. Cash Flow: Cash receipts less cash disbursements from a given operation or
set of operations from a period of time
41. 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.
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