CALA Financial Management & Budgeting Flashcards
6 cards from real CALA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CALA Financial Management & Budgeting flashcards as text
What does the term 'accounts payable' represent in assisted living facility accounting?
Answer: Money the facility owes to vendors and suppliers
Accounts payable represents money the facility owes to vendors, suppliers, and service providers for goods and services already received.
Which financial control practice best reduces the risk of billing errors and fraud in an assisted living facility?
Answer: Implementing segregation of duties in financial processes
Segregation of duties divides financial responsibilities among multiple staff members, reducing the risk of errors, fraud, and misappropriation of funds.
An assisted living facility charges a community fee upon admission. How is this fee typically classified?
Answer: One-time non-refundable or partially refundable admission revenue
Community fees are typically one-time charges collected at admission, which may be fully or partially non-refundable depending on the facility's policy and state regulations.
What is the purpose of a resident trust fund in an assisted living facility?
Answer: To hold and manage personal funds on behalf of residents who request this service
Resident trust funds are accounts managed by the facility that hold personal funds belonging to residents who choose to have the facility manage their money.
Which ratio is used to assess an assisted living facility's ability to meet short-term financial obligations?
Answer: Current ratio
The current ratio (current assets divided by current liabilities) measures a facility's ability to pay its short-term obligations with its short-term assets.
Under US law, what is the administrator's responsibility when a resident's personal funds held by the facility are used incorrectly?
Answer: Report to the appropriate state agency and ensure funds are restored
Misuse of resident personal funds is a serious violation; the administrator must report the incident to the appropriate state regulatory agency and ensure the funds are promptly restored to the resident.