Download NAB NHA Exam- Financial Management Question And Answers (100%) 2023 and more Exams Nursing in PDF only on Docsity!
Question And Answers (100%) 2023
Process of Financial Management - correct answers process of ensureing materials and other resources are bought and used efficiently and economically; attain goals. Value of Financial Management - correct answers Administrator has informatio to make decision and manage facility. Control device - measure performance against original plans. Administrator's role in Financial Mangement - correct answers owners hold administrator responsible for proper financial management of facility. Varies according to type of ownership. chain organizations may do budgeting, payroll, group purchasing - administrator may have little input. Smaller organizations usually have CPA to supervise accounting, make financial reports, handle payroll, etc. asset - correct answers a thing of value, things owned, such as cash, equipment, real estate. current asset - correct answers cash or other short-lived asset, i.e. A/R and CDs that are used up usually within 1 year. fixed or non-current assets - correct answers will not be used up within a year||i.e. building, equipment, etc.
Question And Answers (100%) 2023
tangible assets - correct answers have physical characteristics, they can be SEEN and TOUCHED. Intangible assets - correct answers are non-physical, such as COPYRIGHTS, patents and GOODWILL book value - correct answers is cost of a depreciable asset less accumulation depreciation ||depreciable asset - depreciation capital - correct answers is a term meaning funds to be used in business. Real esate, buildings and certain equipment can be included under certain conditions. | investment capital - correct answers cash used to purchase real estate and equipment, and to build - used to produce operational revenues. working capital - correct answers excess of CURRENT ASSETS/CURRENT LIABILITES. |A measure of company's ability to pay bills. capital expenditure - correct answers expenses of increasing book value of facility assets.
Question And Answers (100%) 2023
fixed expense - correct answers fixed expense remains constant without regard to volume of business||i.e. mortgage payments, leases, taxes variable expense - correct answers change with volume of business|| i.e. food, medical supplies, utilities, etc. Often shown graphically. semi-variable expense. - correct answers Dr. Allen uses this term in reference to CNA wages. For example, if a facility census drops by 5 from one day to the nest, the administrator may send an aide home to keep within budgeted HPPD numbers, thus that employee's wage may be described as a semi-variable expense. gross income - correct answers total income from all services. Also, capital gains, interest on bonds, workers' compensation insurance benfits operating expense - correct answers those incurred in normal operations of business - salaries, benefits, utilities, materials, rents, etc. liabilities - correct answers debts or obligations owed.
Question And Answers (100%) 2023
current liabilities - correct answers are debts usually due within one year,such as FICA taxes, FWT, notes payable and dividends Long-term liabilities - correct answers debts not due for a period usually more than one year, such mortgages, bonds, and property liens. lien - correct answers claim or charge on property for payment of obligations liquidity - correct answers denotes how quickly an asset can be converted to cash without appreciable loss marginal return - correct answers point at which revenues equal expenses, the break-even point mortgage - correct answers conditional transfer of title on property by a borrower to a lender to secure payment of a debt or loan net worth - correct answers total assets - total liabilities note - correct answers written promise to pay definite sum of money on a certain date usually with interest
Question And Answers (100%) 2023
budget - correct answers plan expressed in numerical terms that is a forecast of revenues/expenditures for fiscal year. also budget other resrouces - allocating staff, space, equipment, supplies master budget - correct answers includes cash budget, capital budget, liquidity ratios, pro forma finanical statement CAPITAL BUDGET - correct answers INCLUDES REAL ESTATE, BUILDINGS, QUIPMENT, USALLY LIMITING FACTOR AS RE-COVERAGE FROM EXPENES TAKES LONG TIME, ||MEDICARE COUNTS $5000 OR MORE AS CAPITAL IF ITEM HAS USEFUL LIF IN RXCESS OF 1 YEAR (PREVIOUSLY $500 OR MORE) CASH BUDGET - correct answers FORECAST OF ALL CASH RECEIPTS AND DISBURSEMENTS. CONSIDERS SCHEDULE OF CASH INFLOWS AND PAYMENTS OF OBLIGATIONS. SHOWS AVAILABILITY OF CASH. value - correct answers makes possible plans to invest surplus and for periods when expenses exceed income OPERATING BUDGET - correct answers INCLUDES DETAILS OF ATINICPATED REVENUES (INCOME) BY SERVICE, AND ANTICIPATED EXPENDITURES BY CATEGORY. ||HELPS TO CONINUOUSLY STUDY AND CONTROL FINANCES|||(ROAD MAP TO FUTURE)
Question And Answers (100%) 2023
INTEGRATED BUDGET - correct answers a document that projects all capital and operating costs, as well as all revenues, and consolidates this information methods - correct answers most chain organizations have computerized financial management. local facility computers linked with MAINFRAME COMPUTER IN CENTRAL OFFICE advantages of methods: - correct answers easier to access computer data, makes comparisons, etc. ||most budgets now prepared by central office in chain organizations, may ask for administrator input. some have administrator develop budget, send to central office, which negotiates with administrator. family owned facilities still depend on administrator to develop budget. timing of budget - correct answers begin well before beginning of fiscal year- biggest error is waiting too late. basis of budgeting - correct answers on past years' experience, historical trends, and future expectations forecasting budgets - correct answers begin with overall facility utilization forecasts-average daily census, resident days by payer, anticipated changes in needs, trends in economy, employment rates.
Question And Answers (100%) 2023
bookkeeping - correct answers very mechanical, recording of business transactions. double-entry accounting - correct answers each transaction has equal debits, equal credits cash basis - correct answers revenues/expenditures recorded when actually received or paid out, except for depreciation expense. accrual basis - correct answers revenue/expenses recorded when incurred. Medicare REQUIRES Accounting records: account - correct answers summary of changes in assets, liabilities, stockholders equity, revenue, expense. each account given titles that describes nature of item included (equipment; utilities, auto expense...)| Chart of Accounts - correct answers completel list of all categories in the ledger - may include number - receivables and payables - like table of contents. journal - correct answers book of original ENTRY. CONTAINS al financial transactions in chronological order. tells where to post debits and credits.
Question And Answers (100%) 2023
ledger - correct answers complete listing of all accounts and their balances, payable and receivable Financial Statements: trial balance - correct answers list of all accounts and their balances, except account with zero balance. made at an y time, used in preparing other statements balance sheet - correct answers summarizes assets, liabilities, and stock holders' equity. reflects SOLVENCY. made up at ANY TIME earning statement - correct answers compares revenues with expenses incurred to produce income. reflects PROFITABILITY. ALSO CALLED PROFIT AND LOSS STATEMENT. | retained earnings - correct answers explains changes in retained earning tha occur between balance sheet dates statement of changes in financial position - correct answers shows flows of funds into and out of the business. derived from and ties together b, c, and d in single report.
Question And Answers (100%) 2023
straight-line depreciation method - correct answers distributes the same dollar amount of depreciation to expenses each year during the asset's assigned life. (required by medicare)||cost - salvage value| ________________||assigned life accelerated depreciation - correct answers allocates larger amounts of depreciation in the early years of an asset's assigned life. DOUBLE- DECLINING is the type that allows applying the doubled rate each year. SUM-OF-THE-YEAR'S_DIGITS is another accelerated method that has high depreciation charges in the early years of an asset's life. PRODUCTION -UNIT, SERVICE-HOURS and others are not often used. accumulated depreciation - correct answers the total depreciated take to date on a depreciable assets salvage value - correct answers if there is a salvage value, subtract from cost before depreciating. adjusting entries - correct answers done by accountant if administration is concerned with PROFITABILITY. also done for discounts on purchasing, for uncollectable bills,and at the end of the year. | a. adjustment in basic bookkeeping is done in journal| b. error notedin audit is adjusted in ledger
Question And Answers (100%) 2023
break-even analysis - correct answers determining break even point when income equals expenses- marginal return. |analyze variable and fixed expenses. value of break-even analysis - correct answers dcan study volume of service and expenses in integrated manner; expenses more closely controlled; decision on expansion can be carefully considered; easy-to- read report summarizing date contained in various income statements lower break-even: do 3 things - - correct answers 1. reduce fixed costs, (mortgage)|2. increase prices where possible,|3. lower variable cost percent occupancy - correct answers determined by dividing the number of possible patient days into the number of actual patient days, multiplied by 100|||actual days |_________||possible days||| (possible days = # of bed x days in month) payback period for capital investments - correct answers original cost| __________||savings per year auditing - correct answers checking accounting records for accuracy. can have compliance audit
Question And Answers (100%) 2023
Accounts Receivable: reimbursement sources - correct answers medicaid|medicare|private pay|managed care|long-term care||| 83% of residents pay in part or in whole by Medicaid/Medicare numbers to know for AR - correct answers 3/30 qualifying stay within 30 days|20 100% first 20 days|80 co-pay days|100 days max on medicare|2 days notice before discharge|60 days break in care| days therapy/week AR audited - correct answers must show that made an effort to collect money before putting on bad debt Medicaid - - correct answers Title 19 program for medical assistance to the medically indigent - based on medical need. eligibility for Medicaid - correct answers possess no more than a home, car, and other resources up to an amount set by the state and approved by CMS.| CMS and Medicaid - correct answers State has official state Medicaid agency that administers program with CMS approval.
Question And Answers (100%) 2023
Medicaid Services - correct answers include in-patient and outpatient hospital care, lab, x-ray, SNF and NF, home health, private duty nursing, dental, PT and OT, prescribed generic drugs and some other. Varies by state. medicaid - not covered - correct answers materials for personal care - tooth paste, tooth brushes, OTCs, etc. State provides full lsit of what NH must furnish residents on Medicaid. Medicaid billing - correct answers NH bills a fiscal intermediary chosen by the state. Nursing homes bill electronically on Form UB04 (failure to bill timely may result in forfeiture of that payment. Medicare Insurance Program - correct answers PPS Medicare Eligibility - correct answers Anyone over 65 who is eligible for social security is eligible for Part A. Others over 65 may join and pay a premium. Certain disabled also eligible without regard to age. Everyone pays premium for Part B. Medicare Services PPS for SNF - correct answers Part A covers in hospital in-patient, SNF, patient teaching (self-administration of medications, ostomy care, diabetic management, and rehab - PT, OT, ST. It does not cover respiratory therapy.
Question And Answers (100%) 2023
demand billing - correct answers resident has the right to have facility bill Medicare for services even though the facility has determined he/she is not qualified. CANNOT BILL OTHER SOURCES UNTIL DETERMINATION OF CLAIM IS MADE BY THE INTERMEDIARY.|| Denial Letter - correct answers new regulations mandate that a 2-day notice is given to the resident/legal representative prior to discharging from Medicare Part A Electronic billing - correct answers required. can bill at any time - usually monthly as must have invoices from vendors such as the therapies, labs, etc. reimbursement rate - correct answers is set by CMS based on the 53 RUGs (case mix). 2 sets of rates: metropolitan and rural provider's bill - correct answers they bill the SNF for any covered service. ||ADVANTAGE - helps to reduce fraud as SNF will only pay for services actually rendered Other billing - correct answers private pay, managed care (HMO's), and LTC insurance should be billed on a timely basis. Use sequentially numbered invoices that include:| items or services sold| units of items
Question And Answers (100%) 2023
or services| cost per unit| total cost| terms of payment| age of account| late fees - correct answers nursing homes may charge reasonable fee Vendor's statement - correct answers is basically a history of account - balance of last billing, added bills for service, payments made, current balance, and age of account. DO NOT pay by statement - pay only by invoice aging account - correct answers value of aging account is two fold:||
- reminds resident his account is an arrears and needs attention, and|2. it helps you estimate actual amounts you can expect to collect. Accountant collection rate by days delinquent - correct answers 1- days lose 5% 30,000 uncollectable|31-60 lose 10% 20,000 |61-90 lose 25% 15,000|91-100 lose 50% 5, delinquent accounts - correct answers NHA should take active role|| letters, phone calls, personal visits. The longer it takes, the less you will collect. when all else fails, may need to turn account over to collection agency or an attorney. before you do, suggest family take out loan and pay you - pay loan monthly
