TERMINOLOGY

Question 1

To directly charge a person with committing an offense that is recognized as being against a law is ___.

1. Counsel
2. Accuse
3. Arrest
4. Inform

Answer 1

Accuse

Question 2

To set a person or corporation free of accusation is ___.

1. Acquit
2. Accuse
3. Arrest
4. Define

Answer 2

Acquit

Question 3

A decision of not guilty is known as ___.

1. Arrest
2. Discharge
3. Acquit
4. Inform

Answer 3

Acquit

Question 4

Conduct giving rise to a cause for legal action is ___.

1. Actionable
2. Accusation
3. Defined
4. None of the above

Answer 4

Actionable

Question 5

A written statement given under oath before an officer having authority to administer oaths is ___.

1. Accusation
2. Actionable
3. Affidavit
4. Subpoena

Answer 5

Affidavit

Question 6

One whose legal rights have been invaded or who has suffered a loss or injury is ___.

1. Accused party
2. Aggrieved party
3. Acquitted party
4. None of the above

Answer 6

Aggrieved party

Question 7

In criminal cases, the one accused; in civil cases the one who is sued is the ___.

1. Aggrieved
2. Acquitted
3. Defendant
4. None of the above

Answer 7

Defendant

Question 8

The intentional doing of a wrongful act, without just cause or excuse, with intent to inflict injury is ___.

1. Malice
2. Negligence
3. Abuse
4. None of the above

Answer 8

Malice

Question 9

The failure to exercise the degree of care a reasonable person would exercise under the same circumstances is ___.

1. Malice
2. Negligence
3. Abuse
4. Egregious

Answer 9

Negligence

Question 10

A ___ exists when a legal duty is owed by a defendant to a plaintiff or that duty was breached and the plaintiff was harmed as a direct result of the breach of duty.

1. Ipso facto
2. Witness
3. Tort-feasor
4. Tort

Answer 10

Tort

Question 11

____ is defined as - the three primary sources in health care malpractice suits are:
Failure to obtain effective consent before intervening in the life of a resident
Breach or violation of a contract or promise
The rendering of substandard, poor-quality care
1. Liable
2. Civil liability
3. Malpractice
4. None of the above

Answer 11

Civil liability

Question 12

The duty to have and to use the degree of knowledge and skill that is usually possessed and used by competent, prudent, similar health care providers in like or similar circumstances is ___.

1. Standard of Care
2. Liability
3. Neglect
4. None of the above

Answer 12

Standard of Care

Question 13

An accounting method that assigns identifiable costs and allocates common cost to specific activity areas in the facility. (AKA Departmental area costing) is ___.

1. Administrative costing
2. Activity based costing
3. Bookkeeping
4. None of the above

Answer 13

Activity based costing

Question 14

A method of measuring the potential profitability of an investment is known as ___.

1. ARR-Accounting Rate of Return
2. ARR-Annual Return Rate
3. ARR-Acceptable Rate Return
4. None of the above

Answer 14

ARR-Accounting Rate of Return

Question 15

A provision that a facility makes for uncollectible accounts receivable is called ___.

1. Uncollectible debts
2. Bad Credit
3. Allowance for bad debts
4. None of the above

Answer 15

Allowance for bad debts

Question 16

The detailed statement of the facility’s financial position, fiscal or calendar is called ___.

1. Payable/Receivable Report
2. Earnings Report
3. Fiscal Calendar Report
4. Annual Report

Answer 16

Annual Report

Question 17

In accounting, an economic item that is both unusual and infrequent is called ___.

1. Extraordinary Item
2. Unacceptable Item
3. Uncollectible Item
4. None of the above

Answer 17

Extraordinary Item

Question 18

In accounting, the relative importance of an accounting error or omission in a SNF’s financial statement is called ___.

1. Acceptable Receivables
2. Materiality
3. Easy Collection Error
4. None of the above

Answer 18

Materiality

Question 19

An item or right that has no physical substance and provides an economic benefit is called ___.

1. Notable Asset
2. Economic Benefit
3. Intangible Asset
4. Acceptable Asset

Answer 19

Intangible Asset

Question 20

The ability of current assets to meet the financial obligation of current liabilities is called ___.

1. Tangible Assets
2. Receivables
3. Financial Responsibility
4. Liquidity

Answer 20

Liquidity

Question 21

The value of cash to be received in the future expressed in current dollars of an investment in excess of the initial amount invested is known as ___.

1. Net present value
2. Net receivables
3. Net assets
4. Net liquidity

Answer 21

Net Present Value

Question 22

The current value of a future payment or stream of payments is called ___.

1. Present Receivables
2. Present value
3. Present Assets
4. None of the above

Answer 22

Present value

Question 23

A measure of the earning power of a facility’s assets is known as ___.

1. ROI-Rate of Investment
2. ROI-Receivable on Investment
3. ROI-Return on Investment
4. None of the above

Answer 23

ROI-Return on Investment

Question 24

“Caveat Emptor” is a latin term translated as ___.

1. All things fair
2. Let the Buyer beware
3. Take what you want
4. Be wise in business

Answer 24

Let the Buyer beware

Question 25

A document issued by a state or other sovereign government establishing a corporate entity is a___. 1. Charter 2. Contract 3. Clinic 4. 1&3

Answer 25

Charter

Question 26

An agreement between two or more persons that creates legally enforceable rights and remedies is a ___. 1. Clinician 2. Charter 3. Contract 4. None of the above

Answer 26

Contract

Question 27

One who agrees to do work for another and retains control over the means, method, and manner in which the work is done is known as a ___. 1. Contract 2. Clinic 3. Charter 4. Contractor

Answer 27

Contractor

Question 28

The actual percentage, specified by administration, of goods in a lot of incoming materials that a facility will allow to be defective and still accept the lot as "good" is called ___. 1. Acceptable Quantity Level 2. Acceptable Quality Level 3. Acceptable Goods Level 4. None of the above

Answer 28

Acceptable Quality Level

Question 29

A method of determining whether the results of a particular proposed course of action are sufficient to justify the cost of undertaking it is called ___. 1. Acceptable Benefit Analysis 2. Cost Effective Analysis 3. Cost-Benefit Analysis 4. Acceptable Quantity Analysis

Answer 29

Cost-Benefit Analysis

Question 30

In a nursing facility, adding one more bed might trigger a state requirement for an additional RN on a shift, dramatically increasing the ___ cost of adding one more bed to a wing. 1. Marginal 2. Incremental 3. 1&2 4. None of the above

Answer 30

Marginal or Incremental

Question 31

In accounting and finance, the amount of long-term debt that a company has in relation to its equity is called ___. 1. Disclosure 2. Default 3. Bonds 4. Leverage

Answer 31

Leverage

Question 32

The ___ monitors use of accounting principles, trading activities, and auditing practices of publicly held companies. 1. SEC 2. JIT 3. FTC 4. IRS

Answer 32

SEC

Question 33

The amount on the balance sheet that represents ownership in a business, AKA cash equity, net worth is called ___. 1. Capital 2. Debts 3. Receivables 4. None of the above

Answer 33

Capital

Question 34

The process of simultaneously buying a stock, currency. or commodity in one market and selling it another is called ___. 1. Arbitrage 2. Notes 3. Mortgage 4. None of the above

Answer 34

Arbitrage

Question 35

The shares representing ownership of a company is called ___. 1. Asset Stock 2. Debit Stock 3. Capital Stock 4. None of the above

Answer 35

Capital stock

Question 36

A measure of the company's investment potential is call ___ ratio. 1. Penny/Earnings Ratio 2. Price/Earnings Ratio 3. Stock/Earnings Ratio 4. None of the above

Answer 36

Price/Earnings Ratio P/E = MARKET PRICE PER COMMON SHARE/PRIMARY EARNINGS PER COMMON SHARE

Question 37

The return on services rendered shows the percentage of net income generated by each service billed dollar in for-profit facilities is called ___. 1. Net profit margin 2. Asset profit margin 3. Principle profit margin 4. None of the above

Answer 37

Net profit margin

Question 38

The Ratio of income to sales is called ___. 1. Asset Profit 2. Principle Profit 3. Profit Margin 4. None of the above

Answer 38

Profit Margin PROFIT MARGIN = GROSS PROFIT/SALES

Question 39

A person who computes insurance costs, usually for the purpose of determining rates to be charged is called a/an ___. 1. Annuity 2. Actuary 3. Beneficiary 4. None of the above

Answer 39

Actuary

Question 40

A fixed amount of money payable periodically by an insurer under the terms of an insurance contract is called a/an ___. 1. Annuity 2. Actuary 3. Beneficiary 4. None of the above

Answer 40

Annuity

Question 41

A supplement or amendment to a will is called a ___. 1. Amendment 2. Supplement 3. Codicil 4. Attachment

Answer 41

Codicil

Question 42

Broadly refers to all real and personal property a person owns or leaves at death is called a/an ___. 1. Actuary 2. Annuity 3. Estate 4. Benefit

Answer 42

Estate