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132 Cards in this Set
- Front
- Back
How do you calculate acid test ratio?
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Take the most liquid assets you have such as cash, money market funds and accounts receivables and then divide that number by your total liabilities
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How do you calculate the current ratio?
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Current assets divided by current liabilities
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The costs of acquiring an asset spread out over the useful life of the asset is called ___________
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Depreciation.
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The number of years an asset can be used by a facility is called ________.
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The useful life
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The value at the end of an asset’s useful life is called ________
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slavage value.
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A cost that does not fluctuate as patient volume rises and falls is called a _____ cost
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Fixed Cost
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The number of meals served in a facility is dependent on the number of patients and is a _________cost
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Variable cost.
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How do you calculate total costs?
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Add total costs and variable costs
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True or false -The facility electric bill is a direct cost?
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False - It is indirect since it can not be charged to a single department
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True or false -The facility administrator's salary is a direct cost?
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False
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Setting rates for services by revenue center is called ______
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rate setting.
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Which department prepares the daily resident census report?
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The business office
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A budgeting method where an administrator or the corporate office determines the budget with little or no input from department heads and staff is called the ______ approach
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The Top-Down Approach
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The ____ budget includes both a revenue budget and an expense budget
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An operating budget
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The _______ budget lists anticipated expenses for the upcoming year and is prepared by the department heads
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Operating budget
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The ___ budget lists equipment purchases over $500 and a useful life of one year or more
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Capital budget
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The _____ is used to plan and control facility operations and results
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The budget
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FICA taxes are deposited how often into a bank account in the name of the federal government?
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Quarterly
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True or False - Paychecks should be mailed to employees instead of distributing them in person?
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False - unless they are direct deposited they should be distributed by hand and have the employee sign and acknowledge receipt - etremely important
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True or False - The same person who makes out a bank deposit slip should also physically make the deposit.
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False - You should have 2 different people perform those functions
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True or False - Resident funds should be deposited into a facility account whenever possible to save on bank charges?
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False
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True or False - The facility must submit one consolidated bill for each month for all Medicare residents?
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False - must submit a separate claim with detailed records attached to substantiate the claim
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True or False - The MDS is the key document that is used to calculate the RUG rate for a resident?
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False - The key factors are the number of minutes of therapy requried, ADL score and any required specialized nursing services
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True or False - A facility must submit Medicare claims on a form MCB 90?
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False - It is a UB92
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Revenues collected from the beauty salon, phone and television rentals, guest meals and the gift shop are called _______ revenues
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Ancillary revenue
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What is ancillary revenue?
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Any revenues you earn which are not from your main business (therapy and nursing)
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"Charges included in the daily rate or per diem rate that include room, board, meals, housekeeping and routine nursing services are called _____ charges
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Routine charges - these are included in the per diem rate.
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Which inventory method assumes the supplies stored the longest will be used first, thereby raising the value of the remaining inventory
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FIFO
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The optimal amount of supplies or materials needed or ordered on a regular basis is called __________?
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Economic Order Quantity.
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Medicare was passed in what year?
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1965
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True or false - Medicare has income and age limits?
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False
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True or False - Medicare provides benefits to the poor of any age?
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False
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What does indigent mean?
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Poor
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The look back period for Medicaid is ___ years?
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5 years
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True or False - As the ADL score increases, the RUG rate decreases?
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False
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If your costs to care for a Medicare patient exceed your RUG rate, you can or cannot request a higher rate?
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Cannot
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“PPD” stands for ___________
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Person Per Day
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What is the approximate weight loss for a person previously weighing 150 pounds and now weighs 135 pounds?
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10 percent (150-135=15 then 10/150=.10 (check your answer 150x.10 = 15)
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80 doses were prescribed, and 3 were not given and 3 were administered incorrectly. What is the approximate medication error rate?Was this a significant medication error rate?
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7.5 percent (6/80=.075) (Check your answer 80x.075 = 6) AND yes it was significant since it is over 5 percent
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A nursing aide worked 56 hours as of June 7th. The facility pay period starts June 1 and ends June 14. An nursing aide worked 56 hours as of June 7th. How much overtime would they have earned as of June 7th
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None - it is an 80 hours paycheck. Be careful when they talk about an 80 hour week. They need to work 81 or more hours to accrue overtime
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A facility has160 full time employees and 72 lost work days in a 30 day period? What is the approximate absentee rate?
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1.5 percent (160x30=4800)(72/4800=.015)(Check your answer - 4800x.015=72)
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Using straight line depreciation, calculate the annual depreciation for a 5 year period for an electrical generator costing $22,000 with a $2,000 salvage value?
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$4000 ($22,000 - $2,000 = $20,000)($20,000/5 = $4000 dollars a year
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What is the cost per resident per day if the operating cost is $30,000 for the month of June and the total number of resident days is 3000?
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$10 per resident per day ($30,000/3000=10)(Check your answer 3000x10=$30,000)
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What is the approximate occupancy rate for a facility with 120 beds and an average of 105 occupied beds?
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87.5% (105/120=87.5)
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If $40,000 is borrowed at 10% common interest for ten years and only interest is paid for the first year, the first month’s payment would be approximately how much?
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$333 dollars ($40,000/10=4000)(4000/12=$333)
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What is the approximate percentage of gross profit with an income of $600,000 and $275,000 in fixed expenses and $165,000 in variable expenses?
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27% ($275,000+$165,000=$440,000 then $600,000 - $40,000 = $160,000/$600,000=$27%)
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What is the payback period for an investment of $40,000 with an annual savings of $5,000?
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8 years ($5,000 x 8 years = $40,000)
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60 doses of medication were prescribed and 4 doses were not given and 4 doses were administered incorrectly. What is the approimate nedication error rate?
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13% (8/160=13.3%)
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What is the approximate percentage of weight loss for a person previously weighing 130 pounds and who now weighs 125 pounds?
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3.8 - 4%% (130-125= 5 pounds) (5/130=.038 %)(check your answer 130 x .038 = 4.94
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How many nurse aides would you need to schedule for a facility with 200 residents if you need 1 hour of nurse care per resident? Each nurse works 8 hours per shift
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25 nurse (200x1=200/8=25)
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A facility employed 300 employees throughout the year. At the end of the year, 10 employees had been discharged and 15 resigned. What was the approximate annual turnover rate?
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Approximately 8% (25/300=.083%)
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A nursing home had $500,000 in gross income and $210,000 in fixed expenses and $120,000 in variable expenses. What is the approximate percentage of gross profit?
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34% ($500,000 - $330,000 = $170,000) ($170,000/$500,000 = .34) (check your answer $500,000 x.34 = $170,000)
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A 120 bed facility averaged 95 residents per day in the month of June. What was the facility's approximate occupancy rate?
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approximately 80% (120-95=25 (25 represents empty beds) (25/120=20%. The vacancy rate is 20% Subtract 20% from 100% = 80% that is the occupancy rate)
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What is the average daily absentee rate with a total of 100 full-time employees and 90 lost work days during a 60 day period?
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1.5% (60 days x 100 avg census = 6000 resident days. 90/6000 = .015)
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A new dryer costs $5000 with a useful life of 10 years. How much depreciation expense is deducted on a yearly basis using the straight line method?
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$500
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A nursing home with 100 beds pays the administrator $90,000 a year. The current occupancy rate is 80%? What is the administrator’s approximate fixed salary cost per resident day?
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$3 per resident day (80X365 days = 29200 days or approx. 30,000 days - I recommend you round numbers up and down)(90,000/30,000 is approx. $3 a day
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A 150 bed facility spent $12,000 on food in June with an average daily occupancy of 90%. How much did the facility spend per resident per day?
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Approximately $3 per resident per day (150*.90=135) (135x30=4050 resident days)(12000/4000 days (round down)=$3 per day approximately
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The concept that all transactions which are relevant to evaluating a company’s financial well being must be recorded and disclosed to investors is called the ______ principle?
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Full disclosure principle.
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A complaint and summons are legal documents which initiate a _______?
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Civil lawsuit
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What do we mean when we say a business is "liquid"?
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Its assets exceed its liabilities
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If a business cannot pay its bills, and needs protection from its creditors, the business should file for ________
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Bankruptcy
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Where a debtor’s assets are liquidated or sold to pay creditors and its remaining debts are discharged, this called Chapter ___ bankruptcy
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Chapter 7
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Where a debtor ‘s business is placed under protection of a bankruptcy court and continues in business as they pay back their debts, this called Chapter ___ bankruptcy
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Chapter 11
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Where a debtor is allowed to setup a payment schedule for a set amount to be deducted from their income on a regular basis until the debts are paid off this is called Chapter ____ bankruptcy
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Chapter 13
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Right to use intellectual property owned by a business is called _______
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Copyright
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A logo or symbol that identifies a business is called a _______
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Brand Mark
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The amount on the balance sheet that represents ownership in a business is called ____
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Equity
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Where a third party attempts to help parties to a dispute to arrive at a mutually acceptable resolution, this is called ___
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Mediation
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Where a third party hears a dispute and then a renders a decision that is binding on the parties, this is called ____
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Arbitration
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A unique name that identifies a business is called a ______.
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Brand Name
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Which program under Medicare pays for medications when an individual is not being skilled in a nursing home or hospital
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Medicare Part D
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What is the main purpose of financial information?
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To make decisions
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Revenue that is earned from direct resident services (nursing, rehab, drugs) is called _____ revenue
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Operating revenue
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Revenue from the beauty salon, staff meals and the gift shop are called ______ revenue?
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Non-operating revenue
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How do you calculate Net Operating Revenues?
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Operating revenues less taxes and expenses
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What are Gross Operating Revenues?
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Operating revenues before deductions
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A proceeding where a defendant is formally charged in a criminal matter is called a(n) _______
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Arraignment
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Money taken out of a debtor's paycheck and then turned over to creditor by court order is a _____
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Garnishment
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The final decree of a court is called a ______
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A Judgment
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When you say something that damages another person's reputation this is called ____
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Slander
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When you write something that damages an individual's reputation this is called ___
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Libel
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A violation of a state law is called a _____.
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Misdemeanor
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A violation of federal law is called a _____
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Felony
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A document that describes the purpose of a corporation is called _____
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The mission statement
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Which law determines the fire rating of nursing homes?
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Life Safety Code
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Substandard care begins with which letter (A-L)
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G
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The phase of the state survey where the survey team gathers information from OSCAR, the ombudsman and other sources prior to entering a facility is called _______
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Offsite Preparation
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When services in a facility are not consistent from day to day and from shift to shift this is called the ___________ rule
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Inconsistency Rule
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What type of document would the state survey office send to the administrator of a facility with only isolated or minor problems which caused no actual harm, and no plan of correction is required?
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Notice of isolated deficiencies
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The key consideration in determining the minimum level of staffing in a nursing facility is _______
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Patient Acuity Levels
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True or False - The main purpose of the Risk Management Committee is to reduce injuries?
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False - the main purpose is to limit legal liability and money damages
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What is one key way businesses limit their legal liability?
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Purchase insurance policies
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Which insurance policy covers a facility for malpractice?
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Professional liability insurance
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Each level or story of a building that houses patient sleeping and treatment areas must be divided into a minimum of how many smoke compartments?
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2 compartments
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A fire extinguisher is checked how often and serviced how often?
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Quaterly and Annually
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Doors must be ____’ thick, solid bodied ___ core, or with ____ minutes of resistance fire rating.
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1 3/4 inches, wood core and 20 minute fire rating
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ADA guidelines and standards are developed and approved by _____
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ANSI.
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A violation with a severity requiring immediate action due to risk of injury, harm, impairment or death to a resident is a level ________ violation
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Level 4 violation.
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A charge nurse is which level of management?
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Lower management
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The _________ is the foundation that guides an organization
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The philosophy
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The _________ specifies the composition of the governing body, functions, timing of corporate meetings and the purpose of a corporation
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By laws
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The ___________ communicates the purpose of the organization?
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Mission statement
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The ________ has ultimate responsibility for management and quality of care in a facility
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The governing body
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The _____ is the fundamental law of the U.S that establishes the responsibilities and rights of the federal courts
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The U.S. Constitution
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Any action taken by a facility to punish or penalize residents is called ________
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Discipline
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True or False - A facility may not charge a reasonable fee for clerical time to copy resident records
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False - It may do so
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Written instructions relating to the provision of health care when an individual is incapacitated is called a(n) _________
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Advanced directive
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Residents do or do not have the right to form a resident council if they wish to do so?
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They do
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The facility is or is not required to provide the resident council a meeting place in the facility?
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The facility is required to do so
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The admininstrator may or may not attend resident council meetings whenever they want?
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May not - must be invited by the council
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The facility is or is not required to provide a staff member to the resident council to assist in meetings
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The facility is required to do so
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The gastrointestinal tract is also known as the ______________
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Digestive tract.
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Name three types of specialized rehabilitation services?
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Physical therapy, occupational therapy and speech therapy
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Under HIPAA, when a worker moves from one job to another, their new employer’s health plan can exclude coverage for a pre-existing health condition for no more than _____ months.
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12 months
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The first step in formulating a marketing strategy is to do a ________
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Market audit
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A respiratory condition where bacteria damage the functional ability of the lungs is called ______.
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Tuberculosis
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A respiratory condition where the bronchial tubes are irritated and produce large amounts of mucus and a cough is called _________.
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Bronchitis
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COPD stands for __________.
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Chronic Obsructive Pulmonary Disease
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True or False - In a fire drill, residents must be physcially evacuated from their rooms
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False - they do not need to be removed from their beds
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How must spilled blood be cleaned from the floor?
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Immediately wipe up the blood and then sanitize the affected area.
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A resident must be removed from a restraint for what length of time?
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1 hour
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Valiadation therapy works best with residents with what type of cognitive impairment?
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Severely demented
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Reality therapy works best with residents with what type of cognitive impairment?
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With some cognitive deficits or senile dementia
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An overwieght resident would be prescribed what type of diet?
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Low fat diet
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Which therapy focuses on the lower body weight bearing muscles?
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Physcial therapy
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Which therapy focuses on upper body strength and performing activities of daily living?
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Occupational therapy
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What does CIO stand for?
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Congress of Industrial organizations
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What does AFL stand for?
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American Federation of Labor
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Exit signs may not be placed more than ____ feet from the nearest exit
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100 feet
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Fire extinguishers can be placed no more than ____ feet apart
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50 feet
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Under what circumstances can a resident's medical information be provided to a third party without the resident's consent?
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Pursuant to a third party contract (An insurance company) and A court order
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What does SEIU stand for?
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Service Employees International Union
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