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

Segregation of duties requires that no single person control multiple stages of a financial transaction, reducing fraud risk.

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

Break-even occupancy is the census at which revenues exactly cover all fixed and variable costs.

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

Resident trust funds must be kept separate from facility funds and properly accounted for to each resident.

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

Medicaid HCBS waivers can cover assisted living care costs for eligible residents, while Medicare generally does not pay for assisted living.

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

Straight-line depreciation divides cost minus salvage value by useful life: $60,000 / 10 = $6,000 per year.

(ALF) Assisted Living Facility Administrator Certification Practice Test

(ALF) Assisted Living Facility Administrator Certification Practice Test

ALF Financial Management and Budgeting 4