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

Full written disclosure of rates, fees, and increase policies before admission is a standard regulatory and ethical requirement.

Question 2

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

Accepted Answer

Days in accounts receivable

Answer

Days in accounts receivable measures the average time between billing and payment collection.

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

Tiered pricing assigns residents to care levels based on assessed needs, with higher tiers charged more.

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

A flexible budget recalculates expected costs at the actual census level, making variance analysis more meaningful.

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

Documented receipts plus independent reconciliation create accountability over petty cash.

(ALF) Assisted Living Facility Administrator Certification Practice Test

(ALF) Assisted Living Facility Administrator Certification Practice Test

ALF Financial Management and Budgeting 5