NAB RCAL Exam Questions
and Correct Answers
Breakeven Point? - Correct Answer : total cost = total revenue
Working capital ratio - Correct Answer : current assets / current liabilities
Acid-test (quick) ratio - Correct Answer : (cash + AR + short-term investments) / current liabilities
debt to assets ratio - Correct Answer : total liabilities/total assets
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)
Profit margin - Correct Answer : NOI/Tot. Revenue. Defined as "income to sales. 2 types, gross prof
margin and net prof margin)
Net Operating Income (NOI) - Correct Answer : Total (gross) Revenue - operating expenses
Occupancy rate - Correct Answer : (# of resident days/facility beds) x 365
HCS - Correct Answer : Hazard Communication Standard. OSHA standard requiring employers to inform
workers of potentially hazardous chemicals.
Balance sheet formula - Correct Answer : Assets = Liabilities + Shareholders Equity
EBITDA - Correct Answer : Earnings before interest, taxes, depreciation, and amortization
Amortization - Correct Answer : the reduction of a loan balance through payments made over a period
of time
, revenue cycle management - Correct Answer : resident needs->service
planning->staffing->billing/collections->
FICA SS Tax and Medicare Tax - Correct Answer : 6.2% and 1.45%
4 elements of a valid contract - Correct Answer : agreement, consideration, contractual capacity, legality
(in writing) "ACCL"
Liability insurance usually covers.. - Correct Answer : Bodily injury and property damage
Lock out tag out - Correct Answer : For all electrical equipment
safe electrical practices - Correct Answer : National Electrical Code or NEC
Following NFPA Life Safety Code - Correct Answer : fire plan, regular fire drills, detectors, training on
procedure, non combustable furnishing/draperies
Extinguisher class A - Correct Answer : ordinary combustibles such as wood/paper
Extinguisher Class B - Correct Answer : For flammable liquids and gas fires (grease, paint)
Extinguisher class C - Correct Answer : Live electrical equipment (panelling)
Extinguisher class D - Correct Answer : Combustable metals (aluminum)
Extinguisher class K - Correct Answer : Commercial cooking equipment (cooking oil, animal fats)
PASS (Fire Safety) - Correct Answer : P - Pull the pin.
and Correct Answers
Breakeven Point? - Correct Answer : total cost = total revenue
Working capital ratio - Correct Answer : current assets / current liabilities
Acid-test (quick) ratio - Correct Answer : (cash + AR + short-term investments) / current liabilities
debt to assets ratio - Correct Answer : total liabilities/total assets
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)
Profit margin - Correct Answer : NOI/Tot. Revenue. Defined as "income to sales. 2 types, gross prof
margin and net prof margin)
Net Operating Income (NOI) - Correct Answer : Total (gross) Revenue - operating expenses
Occupancy rate - Correct Answer : (# of resident days/facility beds) x 365
HCS - Correct Answer : Hazard Communication Standard. OSHA standard requiring employers to inform
workers of potentially hazardous chemicals.
Balance sheet formula - Correct Answer : Assets = Liabilities + Shareholders Equity
EBITDA - Correct Answer : Earnings before interest, taxes, depreciation, and amortization
Amortization - Correct Answer : the reduction of a loan balance through payments made over a period
of time
, revenue cycle management - Correct Answer : resident needs->service
planning->staffing->billing/collections->
FICA SS Tax and Medicare Tax - Correct Answer : 6.2% and 1.45%
4 elements of a valid contract - Correct Answer : agreement, consideration, contractual capacity, legality
(in writing) "ACCL"
Liability insurance usually covers.. - Correct Answer : Bodily injury and property damage
Lock out tag out - Correct Answer : For all electrical equipment
safe electrical practices - Correct Answer : National Electrical Code or NEC
Following NFPA Life Safety Code - Correct Answer : fire plan, regular fire drills, detectors, training on
procedure, non combustable furnishing/draperies
Extinguisher class A - Correct Answer : ordinary combustibles such as wood/paper
Extinguisher Class B - Correct Answer : For flammable liquids and gas fires (grease, paint)
Extinguisher class C - Correct Answer : Live electrical equipment (panelling)
Extinguisher class D - Correct Answer : Combustable metals (aluminum)
Extinguisher class K - Correct Answer : Commercial cooking equipment (cooking oil, animal fats)
PASS (Fire Safety) - Correct Answer : P - Pull the pin.
