ALF Financial Management and Budgeting 4

Question 1

A facility administrator discovers an employee has been both approving invoices and signing checks. What internal control principle is being violated?

Accepted Answer

Segregation of duties

Answer

Zero-based budgeting

Answer

Capital rationing

Answer

Accrual matching

Question 2

Which of the following best describes 'break-even occupancy' for an assisted living facility?

Accepted Answer

The census level at which total revenue equals total expenses

Answer

The occupancy required to qualify for Medicaid certification

Answer

The point where variable costs equal fixed costs

Answer

The maximum occupancy allowed by the facility license

Question 3

An administrator handling residents' personal funds in a trust account must do which of the following?

Accepted Answer

Keep resident funds separate from facility operating accounts

Answer

Invest the funds in the facility's expansion project

Answer

Charge a monthly fee equal to any interest earned

Answer

Commingle small balances with petty cash for convenience

Question 4

Which payer source typically covers assisted living services for eligible low-income residents in states with home and community-based services waivers?

Accepted Answer

Medicaid

Answer

Medicare Part A

Answer

TRICARE

Answer

Workers' compensation

Question 5

A facility purchases a new passenger van for $60,000 with an expected useful life of 10 years and no salvage value. Using straight-line depreciation, what is the annual depreciation expense?

Accepted Answer

$6,000

Answer

$10,000

Answer

$600

Answer

$60,000

Question 6

What is the primary purpose of a facility's operating budget?

Accepted Answer

To plan and control day-to-day revenues and expenses for the fiscal year

Answer

To record actual transactions after they occur

Answer

To list all fixed assets and their depreciation schedules

Answer

To satisfy state fire safety inspection requirements

Question 7

An administrator reviewing monthly financials sees labor costs at 65% of revenue when the industry benchmark is 55%. What is the most reasonable next action?

Accepted Answer

Analyze staffing schedules, overtime, and agency usage against census and acuity

Answer

Ignore it since benchmarks do not apply to assisted living

Answer

Reclassify some wages as capital expenditures

Answer

Immediately lay off 10% of staff across all departments