CALA CALA Financial Management & Budgeting 2

Question 1

What financial metric measures the percentage of revenue remaining after all operating expenses are paid?

Accepted Answer

Operating profit margin

Answer

Operating profit margin measures how much profit remains from revenues after subtracting all operating expenses, expressed as a percentage.

Question 2

Which Medicaid program most commonly funds assisted living services for low-income residents in the US?

Accepted Answer

Home and Community-Based Services (HCBS) waivers

Answer

Medicaid HCBS waivers are the primary mechanism states use to fund assisted living and similar residential care services for eligible low-income individuals.

Question 3

An assisted living administrator is conducting a variance analysis. What does a negative variance in labor costs indicate?

Accepted Answer

Labor costs were higher than budgeted

Answer

In expense categories, a negative variance means actual costs exceeded the budgeted amount, indicating overspending on labor.

Question 4

What is the purpose of a capital expenditure budget in an assisted living facility?

Accepted Answer

Plan for major asset purchases and facility improvements

Answer

A capital expenditure budget plans for the purchase or improvement of long-term assets such as equipment, renovations, or major facility upgrades.

Question 5

Which document provides an assisted living administrator with a month-by-month projection of cash inflows and outflows?

Accepted Answer

Cash flow projection

Answer

A cash flow projection forecasts when money will come in and go out each month, helping the administrator ensure the facility can meet its financial obligations.

(CALA) Certified Assisted Living Administrator Practice Test

(CALA) Certified Assisted Living Administrator Practice Test

CALA CALA Financial Management & Budgeting 2