ALF Financial Management and Budgeting 5

Question 1

A prospective resident asks about additional charges beyond base rent. Under most state ALF regulations and consumer protection standards, the administrator must do what?

Accepted Answer

Disclose all fees and charge policies in writing before admission

Answer

Refer all pricing questions to the corporate office

Answer

Quote only the base rate since care fees vary

Answer

Provide fee information only after move-in

Question 2

Which metric best measures how quickly a facility converts its billed charges into cash?

Accepted Answer

Days in accounts receivable

Answer

Inventory turnover

Answer

Debt service coverage ratio

Answer

Fixed asset ratio

Question 3

A tiered pricing model in assisted living means residents are charged based on what?

Accepted Answer

Their assessed level of care needs

Answer

Their age at admission

Answer

The floor of the building where their unit is located

Answer

The order in which they were admitted

Question 4

During the fiscal year, a facility's revenue drops due to unexpected vacancies. Which budget type automatically adjusts expense targets to the actual activity level?

Accepted Answer

Flexible budget

Answer

Capital budget

Answer

Static budget

Answer

Cash budget

Question 5

Which practice best protects a facility against theft in petty cash handling?

Accepted Answer

Requiring receipts and periodic reconciliation by someone other than the custodian

Answer

Allowing any manager to borrow from petty cash informally

Answer

Replenishing the fund without documenting expenditures

Answer

Keeping the petty cash box unlocked for quick access

Question 6

A facility's debt service coverage ratio falls below the minimum required by its lender's loan covenant. What is the most likely consequence?

Accepted Answer

The lender may declare the loan in technical default and impose remedies

Answer

Medicare payments are suspended

Answer

Residents must be given 30 days' notice to move out

Answer

The facility's license is automatically revoked

Question 7

When forecasting next year's revenue, which combination of factors should an ALF administrator weigh most heavily?

Accepted Answer

Projected occupancy, care-level mix, and planned rate increases

Answer

The prior administrator's personal spending habits

Answer

The number of parking spaces on the property

Answer

National stock market performance only