Lnha Test

Front 1

The staff person responsible for assuring that the business office runs smoothly is, in the final analysis?

Back 1

The administrator

Front 2

In general, the ownership patterns for U.S. nursing facilities in 2008 was?

Back 2

Varied widely from state to state

Front 3

Generating reports on the financial standing of the nursing facility is generally assigned to what?

Back 3

The accountant

Front 4

Responsibility and blame for overspending in the department of nursing and in food services is typically assigned by the owners to the?

Back 4

Administrator

Front 5

A set of records that lists each monetary transaction of the facility is normally referred to as?

Back 5

The books

Front 6

The primary purpose of the Generally Accepted Accounting Principles is to?

Back 6

Maximize comparability of financial statements of different organizations

Front 7

An owner who takes unrecorded cash from the facility daily cash intake to purchase a laptop for his daughter to use at college has violated the what?

Back 7

Entity

Front 8

Instructing the financial manager to record assets at current market value and to not record patient bills expected to become uncollectible violates the what?

Back 8

Consistency

Front 9

Telling the account not to record overtime paid from the cash box to employees working weekends is violating the what concept?

Back 9

Full disclosure

Front 10

Directing the accountant to move from a January 1 date to a June 30 fiscal year date in order to minimize the negative image possibly created by an anticipated loss violates the what concept?

Back 10

Time period

Front 11

Allowing the bookkeeper to destroy vouchers showing payments made from meals to employees once these are recorded may violate the what concept?

Back 11

Objective evidence

Front 12

Pieces of paper indicating money owed to or by the facility, bank statements, and similar pieces of paper or its electronic equivalent are known as?

Back 12

Source documents

Front 13

An administrator who instructs the accountant to begin reporting facility finances by recording all expenditures and all receipts as they actually occur has decided to use the what system of accounting?

Back 13

Cash

Front 14

It is difficult to recognize items such as depreciation and prepaid insurance in the what system of accounting?

Back 14

Cash

Front 15

An administrator directing the accountant to record revenues when they are earned and expenses when they are incurred, regardless of the time the cash transaction takes place, has decided to use the what approach to accounting?

Back 15

Accrual

Front 16

Allowing the facility to accurately measure revenues earned after expenses have been paid or losses incurred by matching revenues and expenses for each time period is the advantage of the what system of accounting?

Back 16

Accrual

Front 17

A summary of the nursing home's financial well-being within a time period is normally referred to as what?

Back 17

The financial statements

Front 18

If the administrator asked the bookkeeper for a list containing every account in the facility, the bookkeeper would hand the administrator the

Back 18

Chart of accounts

Front 19

Things owned by the facility are normally referred to as what?

Back 19

Assets

Front 20

Things owed by the facility, its obligations, are normally referred to as what?

Back 20

Liabilities

Front 21

Money invested in the facility, also known as the facility's net worth, is normally referred to as what?

Back 21

Capital

Front 22

If the administrator asks the accountant for the journals, the administrator wants to look at what?

Back 22

The original entries

Front 23

The new accountant informs the administrator that to simplify things, he has incorporated all purchases that will be paid for the next few years into the account payable journal. The administrator should what?

Back 23

Begin a search for a new accountant.

Front 24

making a debt and credit entry for each transaction is known as the what system of accounting?

Back 24

Double-entry

Front 25

Under double-entry bookkeeping, when a bill is sent to Ms. Jones for 3,000 dollars for the past month's care, the bookkeeper would normally record 3,000 in the debit column as an increase in assets and what?

Back 25

Record $3,000 on the credit side as an increase in revenue

Front 26

Using accrual accounting, purchase of a 6-month supply of provisions would be entered into the what?

Back 26

General journal

Front 27

Under accrual accounting, when the accountant shows the amount of medical supplies used during a month in the cash disbursements journal and the general journal the bookkeeper has made?

Back 27

An adjusting entry

Front 28

When errors are discovered in other journals, they can be corrected

Back 28

General journal

Front 29

When the administrator asks the accountant for a summary of all debits and credits contained in the journals for the time period, the accountant should hand the what to the administrator?

Back 29

General ledger

Front 30

At the end of a time period, when debits do not match credits exactly, the accountant can first assume an error has been made in what?

Back 30

Recording transactions

Front 31

The GAAPs do not normally require financial statements prepared for general distribution to include what?

Back 31

Charts of accounts

Front 32

The income statement shows whether what were sufficient to cover expenses

Back 32

Revenues

Front 33

The accountant has listed the new building annex, the new central air conditioning system, and the supplies for the next 6 months as capital expenses. The administrator should what?

Back 33

Look for a new accountant

Front 34

At the end of a time period, total expenses are subtracted from total revenues to compute the what?

Back 34

Net income, or profit loss

Front 35

The accountant, upon successfully bringing the expense and revenue accounts to zero, has successfully?

Back 35

Closed the books

Front 36

When the administrator asks the chief financial officer for a statement showing the ending balance of the revenue and expense accounts, the CFO should hand the what to the administrator?

Back 36

Income statement

Front 37

A financial statement in which the assets must equal the liability and capital accounts is known as the what?

Back 37

Balance sheet

Front 38

Any possession of the facility which will be or could be turned into cash within 12 months is a what?

Back 38

Current asset

Front 39

The concept that, since capital assets will not be liquidated any time soon, their current market value is not directly relevant, relates to the ongoing concern concept and is known as?

Back 39

Historic cost

Front 40

Depreciation is an expense associated with the use of what?

Back 40

An asset

Front 41

Bills from suppliers of foodstuffs or office supplies, or janitorial services contractions are normally classified as among the?

Back 41

Current liabilities

Front 42

When an administrator notes that there are $600,000 in notes payable on the financial reports, she knows these must be paid within?

Back 42

1 year

Front 43

Funds that have been put into the facility by owners or others , and retained earnings that have been put back into the facility are usually included when calculating the what?

Back 43

Net worth

Front 44

If the administrator asks the accountant for a statement analyzing the financial position of the facility at the beginning of the fiscal year, the best statement to hand the administrator is the?

Back 44

Balance sheet

Front 45

The certified public accountant's end of the year report for a 15-year-old, 120 bed for-profit facility with no debt shows an excess of income over expenses of $95,000. The owner would likely be what?

Back 45

Very displeased with facility performances

Front 46

When asked whether funds are readily available for a $75,000, purchase and the accountant responds that the net worth is well over $800,000 and to go ahead with the purchase, the administrator should?

Back 46

Ask for a statement of working capital

Front 47

When the amount of current assets remaining after current liabilities have been subtracted is calculated, the administrator has an idea of the what available?

Back 47

Working capital

Front 48

When the chief financial officer identifies trends in measures of the facility's financial performance by comparing the same relationships for several time periods he is doing?

Back 48

Ratio analyses

Front 49

A facility has current assets of $403,898 and current liabilities of $367,000. Its current ratio is what?

Back 49

1.1

Front 50

A 1-year-old, 120-bed for-profit facility with a 2,500,000$ mortgage at 7.4% reports a net operating margin before depreciation of 25,000$. In today's financial market, the owners would likely be what?

Back 50

Very pleased

Front 51

Ratios, to be truly useful, should be?

Back 51

Compared with industry averages over time

Front 52

The new administrator in a private pay for-profit facility is told by the accountant that the accounts receivable are 105,800$ and the net operating revenues are $334,000. Upon calculating the average collection period ratio, which turns out to be how many days, the administrator should be what?

Back 52

115 days he would be upset

Front 53

A 12-year-old facility, largely out of debt, has 334,693$ in operating revenues and 339,078$ in operating expenses, yielding a net operating margin ratio of what? The owners of this facility would likely feel this to be what?

Back 53

.013 feel unacceptable

Front 54

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 what, which is what the industry average?

Back 54

1.33 ratio considerably above

Front 55

Trends and patterns in the operation of a nursing facility can best be obtained by doing what?

Back 55

Ratio and vertical analyses over time

Front 56

To safeguard the finances of a facility, procedures should be arranged to establish a system of what so that employees review each other's financial activities?

Back 56

Checks and balances

Front 57

A useful form that summarizes the facility's occupancy, listing daily admissions, discharges, and transfers is known as the?

Back 57

Dailey census form

Front 58

At the end of each year for facilities participating in Medicare, a Medicare Cost Reconciliation settlement occurs in which?

Back 58

The facility receives or pays back money

Front 59

The frozen food contractor arrives, places the order in the freezer, checks off the receiving slip, hands it to the appropriate kitchen employee who thanks the contractor, and hands the receiving slip and purchase order copy to the director of food services. The administrator, on observing this, should what?

Back 59

Should be upset

Front 60

Perhaps the only way to maintain an accurate count of supplies consumed and those remaining is to use what?

Back 60

A perpetual inventory system

Front 61

The use of LIFO (Last In First Out) to price inventory during a period of inflation will have the effect of making the value of the goods remaining in inventory?

Back 61

Lower

Front 62

The largest directly controllable cost for the average administrator is what?

Back 62

Labor

Front 63

Payroll deductions are subtracted from what to arrive at the employee's what pay?

Back 63

Gross pay to get employee's net pay

Front 64

Assets that can be capitalized or depreciated differ from the other assets of a facility in that they are used in operations for more than what and will not be converted into what within the year?

Back 64

One time period converted into cash within the year

Front 65

Upon discovering that the new accountant had set the actual purchase price paid (e.g., no tax, delivery, or similar costs) for the assets to be depreciated, the facility administrator would normally feel the accountant was what?

Back 65

Not serving the facility well

Front 66

One practical reason for using straight line depreciation is that what?

Back 66

Most third-party payers require it

Front 67

Congress' purpose for passing accelerated depreciation was to what of new facilities?

Back 67

Encourage more building

Front 68

As a practical matter, most owners do not fund depreciation and treat it as?

Back 68

Money available to the facility to spend

Front 69

Using several differing depreciation schedules for a single piece of equipment is what as an accounting behavior?

Back 69

Quite acceptable

Front 70

Land what is a depreciable asset?

Back 70

Never

Front 71

Medical supplies, food supplies, and postage for billing resident's are what costs?

Back 71

Variable

Front 72

The salary of the director of nurses and the administrator are examples of what costs?

Back 72

Fixed cost

Front 73

In a facility having high fixed costs, the pressure to keep beds filled is what in facilities with low fixed costs?

Back 73

Stronger than

Front 74

For in-facility services such as physical therapy, it is important to calculate the what cost in order to better analyze the cost effectiveness of such services?

Back 74

Break even

Front 75

Nursing and physical therapy are normally thought of as what centers?

Back 75

Revenue

Front 76

A financial analysis that yields to the administrator a representative picture of the entire expense of providing a service (e.g., offering adult day care services is known as what?)

Back 76

Cost ending

Front 77

Only when appropriate what has been achieved can an accurate job of what is accomplished?

Back 77

Cost finding then rate setting

Front 78

In order to develop a reasonable estimate of income and expenses for a coming time period, it is important to do both a/an what budget and a what budget?

Back 78

Expense budget and a revenue budget

Front 79

Because income and expenses vary from time period to time period it is desirable to project a what?

Back 79

Cash budget

Front 80

Plans for expenditures for buildings, major equipment, and the like are normally part of the what budget?

Back 80

Capital budget

Front 81

A method of measuring the potential profitability of an investment, calculated by dividing the net income by the investment is the what?

Back 81

ARR (accounting rate of return)

Front 82

A revision of an accounting forecast or assumption about the facility's expected or experienced performance is a/an what?

Back 82

Change in accounting estimate

Front 83

The portion of a brand in the form of a symbol, design, or distinctive coloring or lettering, also called a logo, is an organization's what?

Back 83

Brand mark

Front 84

The administrator decides to offer newer forms of physical therapy that reduce use of currently used physical therapy methods. She has what the current methods?

Back 84

Cannibalized

Front 85

A market that is so competitive that all its participants have virtually no control over price is known as what?

Back 85

Perfect competition

Front 86

The administrator asks the business manager to divide the net income after any taxes by the noncurrent liabilities + owner's equity. He wants the what?

Back 86

Return on invested capital estimate

Front 87

A method of determining the optimum amount of materials that needs to be ordered on a regular basis is known as the what?

Back 87

Economic order quantity

Front 88

When governments use their powers to keep the price either above or below the equilibrium point it is known as what?

Back 88

Price controls

Front 89

Short-term securities (2 to 270 days) issued by corporations, banks, and other borrowing institutions to raise short-term working capital is known as what?

Back 89

Commercial paper

Front 90

The administrator asks the bank for an instrument stating that that bank that has granted the holder the amount of credit equal to the face amount wants a what?

Back 90

Letter of credit

Front 91

The facility has issued a debt obligation to pay a specific amount on a stated date. the facility has issued what?

Back 91

Bonds

Front 92

When the financial manager classifies an expense as an asset because it benefits the facility for more than 1 year he has what that expense?

Back 92

Capitalized

Front 93

The administrator wishes to lease a building and acquire substantial property rights in the process. She seeks what?

Back 93

A capital lease

Front 94

The administrator has borrowed cash for an agreed upon purpose between a lender and borrower. He now has a what?

Back 94

Note

Front 95

The chain issues stocks and bonds that can be converted into capital stock at some future date. They have issued what?

Back 95

Convertible securities

Front 96

The chain "buys back" a portion of its outstanding stock by giving one new share in place of each four previously held shares. The chain has accomplished a/an what?

Back 96

Reverse split

Front 97

The administrator seeks to be licensed without having to meet all the conditions new entrants would have to meet. She seeks to be what?

Back 97

Grandfathered

Front 98

The administrator holds a number of assets, such as bonds or easily sold stock, as investments. He has substantial what?

Back 98

Cash equivalents

Front 99

The instrument that creates a corporation under the laws of a state is known as the what?

Back 99

Articles of incorporation

Front 100

The three owners hold all the shares in the facility. They have a what?

Back 100

Privately held company