Mock National Exam 8 Flashcards
Things owed by the facility are called
Liabilities
Money invested in a facility is called
Capital
If the administrator wants to see the journals she wants to see the
Original entries
Making a debit and credit entry is known as the ___ system
Double entry
The bookkeeper sends the resident a bill for $3000 and makes a debit entry as an increase in capital and would then make a ___ entry to increase revenue
Credit
Using the accrual system the purchase of a six month supply of briefs would be made in the
General Journal
This is a prepaid expense that is entered in the general journal
When errors are made in other journals they can be corrected in the
General Journal
When debits do not match credits int he general ledger the NHA can assume an error was made in
Recording the transactions or posting them from the journals to the ledger
GAAP does not require investors to be provided the
Chart of accounts
At month’s end the expenses are deducted from the revenues to determine the
Net income or profit
When the NHA asks for a statement showing the ending balance of the revenue and expense accounts, he wants to see the
Income statement
An asset that can be turned into cash within 12 moths is a
Current assest
Bills from suppliers for food and office supplies are classified as
Liabilities
When the NHA notes there are $200,000 in notes payables in the financial reports she knows these must be paid within
12 months
Notes payables must be paid within 12 months
Funds put into the facility by the owners are calculated in the
Net worth
funds invested are not monies generated from sales of services and are not income or profit. This is capital used by the business generate sales and income
The NHA ask for the statement of financial position at the beginning of the year, she should want to see the
Balance sheet
Current assets minus current liabilities +
Working capital
When the NHA compares the same relationships in financial performance over several years she is doing a
Ratio analysis
A facility with current assets of $403,898 and current liabilities of $367,000 has a current ratio of
1.1
Ratios to be useful must be compared to ___ over time
Industry averages
A facility with long term debt of $4,000,000 and a total equity of $3,000,000 has a debt to equity ratio of
1.33
General liability insurance provides the facility protection against
Accidents to visitors
The most accurate method to count supplies is
Perpetual inventory
Using LIFO in a period of inflation would ___ of remaining goods
Raise the value
The largest controllable cost is
Labor
Teh purpose of accelerated depreciation is to encourage businesses to
Invest in new equipment and buildings
Using several different depreciation schedules for an aseset
Is acceptable and encouraged by teh IRS
___ is not a depreciable asset
Land
Medical supplies and food costs are
Variable costs
Their cost changes with the census
Nursing and rehab are
Revenue and expense centers
An analysis that shows the entire expensive of a service is called
Cost finding analysis
Because income and expenses vary from month to month it is best to do
Forecasted udget
Constructing a building, repairing the parking lot, buying major equipment is part of the
Capital budget
A brand in the form of a symbol, design or distinctive lettering is called a logo or
Brand mark
Where and NHA reduces or eliminates current services to provide new services or products, this is called
Cannibalization
A market where no competitors have a competitive pricing edge is called
Perfect competition
When the NHA asks the business manager to divide the net income after any taxes by the non current liabilities plus owners equity she wants
Return on invested capital estimate
How do you calculate the average percent of occupancy
Divide the number of occupied bed days by the total number of days in the period and then divid by the total number of beds and then multiply by 100
When the NHA ask for a summary of all the debits and credits the accountant would hand her the
General ledger
How do you calculated the approximate percentage of gross profit
Add the fixed expenses and the variable expenses and subtract from the gross income. Divide the differences (net profit) by the gross income
How do you calculate a monthly depreciation amount using straight line depreciation
Subtract the salvage value form the cost of the equipment and divide by the number of years to be depreciated and then divide the number of moths per year
The method to determine the optimum level of supplies to order is called
Economic order quntity
Short term securities issued by a corporation or bank are called
Commercial paper
A debt obligation to pay a specific amount on a stated date is called
A bond
When an expense is classified as an asset because it has a benefit for 1 year or more this is called a __ expense
Capitalized expense
Where money is borrowed for an agreed upon purpose between a lender and a borrower, this is called a
Promissory note
Stocks and bonds that can be converted into capital stock at a later date is called
Convertible securities
Where a chain buys back its outstanding shares of stock form share holders, this is called a
reverse split
Must provide residents a statement of any funds held in trust to residents
Quarterly
Bonds or assets that can be easily sold are called
Cash equivalents
The instrument that creates a corporation under the laws of a state is called
Articles of incorporataion
Where 3 owners hold all the shares in a company, this is called a
Privately held company
Laws passed by a state are called
Statutes
A court of appeal does not have original
Jurisdiction
Statues and regulations are collected in
The Code
An order from a judge permitting a search of a private residence is called a
Search warrant
A ___ exists between private citizens when a legal duty is owed to another, and that duty is reached, resulting in harm or property damage as a result of the actions of the one of the parties
Tort
A written order from a judge to arrest an individual is called a
Warrant
Any performed as your official duties as an employee in a company is called
Scope of employment
A specific law that mandates an employer is responsible for work related injuries and lost time for their employees is called
The Federal Employer Liability Act
A concept recognized in civil law that an employer is responsible for the acts of their employees where third parties are inured is called
Respondent Superior
The ___ pays for medical expenses and lost time for work related injuries
Workers compensation Act