NAB RCAL Exam ACTUAL QUESTIONS
AND CORRECT ANSWERS
Breakeven Point? - Correct answers✔total cost = total revenue
Working capital ratio - Correct answers✔current assets / current liabilities
Acid-test (quick) ratio - Correct answers✔(cash + AR + short-term investments) / current
liabilities
debt to assets ratio - Correct answers✔total liabilities/total assets
FTE (full time equivalent) - Correct answers✔total number of hours per employee in a week / 40
(i.e. 12+14+40+30 div. by 40)
Profit margin - Correct answers✔NOI/Tot. Revenue. Defined as "income to sales. 2 types, gross
prof margin and net prof margin)
Net Operating Income (NOI) - Correct answers✔Total (gross) Revenue - operating expenses
Occupancy rate - Correct answers✔(# of resident days/facility beds) x 365
HCS - Correct answers✔Hazard Communication Standard. OSHA standard requiring employers
to inform workers of potentially hazardous chemicals.
Balance sheet formula - Correct answers✔Assets = Liabilities + Shareholders Equity
, EBITDA - Correct answers✔Earnings before interest, taxes, depreciation, and amortization
Amortization - Correct answers✔the reduction of a loan balance through payments made over a
period of time
revenue cycle management - Correct answers✔resident needs->service planning-
>staffing>billing/collections->
FICA SS Tax and Medicare Tax - Correct answers✔6.2% and 1.45%
4 elements of a valid contract - Correct answers✔agreement, consideration, contractual capacity,
legality (in writing) "ACCL"
Liability insurance usually covers.. - Correct answers✔Bodily injury and property damage
Lock out tag out - Correct answers✔For all electrical equipment
safe electrical practices - Correct answers✔National Electrical Code or NEC
Following NFPA Life Safety Code - Correct answers✔fire plan, regular fire drills, detectors,
training on procedure, non combustable furnishing/draperies
Extinguisher class A - Correct answers✔ordinary combustibles such as wood/paper
AND CORRECT ANSWERS
Breakeven Point? - Correct answers✔total cost = total revenue
Working capital ratio - Correct answers✔current assets / current liabilities
Acid-test (quick) ratio - Correct answers✔(cash + AR + short-term investments) / current
liabilities
debt to assets ratio - Correct answers✔total liabilities/total assets
FTE (full time equivalent) - Correct answers✔total number of hours per employee in a week / 40
(i.e. 12+14+40+30 div. by 40)
Profit margin - Correct answers✔NOI/Tot. Revenue. Defined as "income to sales. 2 types, gross
prof margin and net prof margin)
Net Operating Income (NOI) - Correct answers✔Total (gross) Revenue - operating expenses
Occupancy rate - Correct answers✔(# of resident days/facility beds) x 365
HCS - Correct answers✔Hazard Communication Standard. OSHA standard requiring employers
to inform workers of potentially hazardous chemicals.
Balance sheet formula - Correct answers✔Assets = Liabilities + Shareholders Equity
, EBITDA - Correct answers✔Earnings before interest, taxes, depreciation, and amortization
Amortization - Correct answers✔the reduction of a loan balance through payments made over a
period of time
revenue cycle management - Correct answers✔resident needs->service planning-
>staffing>billing/collections->
FICA SS Tax and Medicare Tax - Correct answers✔6.2% and 1.45%
4 elements of a valid contract - Correct answers✔agreement, consideration, contractual capacity,
legality (in writing) "ACCL"
Liability insurance usually covers.. - Correct answers✔Bodily injury and property damage
Lock out tag out - Correct answers✔For all electrical equipment
safe electrical practices - Correct answers✔National Electrical Code or NEC
Following NFPA Life Safety Code - Correct answers✔fire plan, regular fire drills, detectors,
training on procedure, non combustable furnishing/draperies
Extinguisher class A - Correct answers✔ordinary combustibles such as wood/paper
