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NAB 185 CORE EXAM QUESTIONS WITH
ANSWERS
Who pays the tax under the Federal Unemployment Tax Act? A. employee only B. employer only (in all but a few states) C. employer and employee equally, in all states D. employer and employee, but at different rates - ✔ ✔ B. employer only (in all but a few states) Why should an administrator get department heads involved in the budgetmaking process? A. To comply with state licensing and federal certification requirements. B. To obtain more accurate cost estimates and more control over costs. C. To satisfy a Generally Accepted Accounting Principle (GAAP). D. To conserve time in developing a budget - ✔ ✔ B. To obtain more accurate cost estimates and more control over costs. Workers Compensation provides which one of the following? A. full medical and hospital payments B. partial medical and hospital payments C. punitive damages D. replacement of all lost wages - ✔ ✔ A. full medical and hospital payments A care recipient in a long-term care healthcare organization disagrees with management's decision regarding an aspect of care. The care recipient feels that is could adversely affect the health, safety, welfare, or rights of care recipients. The individual or group most responsible for acknowledging, investing, and resolving the concern is the:
- ombudsman
- social worker
- care recipient council president
- governing body - ✔ ✔ 2. social worker
A care recipient who uses a walker to get to the dining room is told by an employee to leave the walker outside the room. With regard to the Americans with Disabilities Act of 1990 (ADA), the healthcare organization:
- must provide a space in the dining room for wheelchairs and walkers
- may formulate its own regarding the use of walkers
- must discipline the employee for violating the care recipient's rights
- should have a caregiver escort the care recipient to the dining room - ✔ ✔ 1. must provide a space in the dining room for wheelchairs and walkers A check should generally be issued only when which one of the following is available and properly signed? A. purchase order B. lien C. warranty D. general ledger - ✔ ✔ A. purchase order A cognitive care recipient, whose spouse is living, does not have an advance directive or a Do Not Resuscitate (DNR) order. The care recipient's daughter has financial Power of Attorney, and the son has Healthcare of Power of Attorney. A DNR order can be authorized by the:
- care recipient's son
- care recipient
- care recipient's spouse
- physician - ✔ ✔ 1. care recipient's son A common mistake made in hiring is: A. interviewing a lot of applicants. B. having a supervisor make the choice. C. hiring the first qualified person available. D. saying too much about what the job entails. - - ✔ ✔ C. hiring the first qualified person available . Leadership development training should be provided to A. Administrators and AITs
A corporation's distributions of profit to its shareholders are called... A. contributions B. participations C. dividends D. surpluses - ✔ ✔ C. dividends A department head announces new personnel rules to subordinates at a meeting. This communication would be an example of the ________________ direction of communication. A. vertical B. lateral C. horizontal D. diagonal - ✔ ✔ A. vertical A direct cost is:
- allocated equally to all areas of the budget
- charged to a specific billing period
- documented by proper accounting procedures
- linked to a specific objective, responsibility, or function - ✔ ✔ 4. linked to a specific objective, responsibility, or function A facility might have to turn over to a court a copy of a resident's clinical record in response to an order called: A. subpoena duces tecum B. respondeat superior C. warranty D. habeas corpus - ✔ ✔ A. subpoena duces tecum A foreign-language-speaking care recipient is admitted to a healthcare organization. The foreign language spoken by the care recipient is not commonly spoken in the region where the organization is located. As part of communicating care recipient rights, the organization should:
- have the care recipient write a signed statement verifying that the care recipient understands care recipient rights
- explain the rights to a representative of the care recipient who can then explain the rights to the care recipient
- use pictures to explain the rights to the care recipient
- provide a written translation to the care recipient - ✔ ✔ 1. have the care recipient write a signed statement verifying that the care recipient understands care recipient rights A guest falls and is injured while visiting a healthcare organization's office. Which one of the following types of insurance would cover this injury?
- General liability insurance
- Property insurance
- Professional liability insurance
- Workers' compensation insurance - ✔ ✔ 1. General liability insurance A healthcare organization has just purchased equipment for a total cost of $15,000. The equipment has a useful life of five years and the administrator is planning to charge a depreciation expense of $3, per year. Which depreciation method is being used?
- Sum of the years' digits depreciation
- Declining balance depreciation
- Straight-line depreciation
- Accelerated depreciation - ✔ ✔ 3. Straight-line depreciation A healthcare organization's employee handbook:
- is generally considered the property of the employer
- can be considered an enforceable contact between employer and employee
- should be written clearly enough to leave no latitude for interpretation
- should be written in lay terms and kept in the administrator's office - ✔ ✔ 3. should be written clearly enough to leave no latitude for interpretation A list of the types and amounts of services that have been rendered would be found in which of the following? A. clinical record B. care plan
C. must be given immediately D. should be taken after food or meals - ✔ ✔ B. can be administered as needed A program that is designed to maintain equipment in order to keep it working properly is known as a/an?
- preventive maintenance program
- equipment replacement program
- preventative repair program
- equipment modification program - ✔ ✔ 1. preventive maintenance program A resident incurs a serious injury that may have been caused by a defect in the wheel chair he was using. After the facility learns about this event, among the reports that it must make is which one of the following? A. Immediately to the FDA B. Within 10 working days to the FDA and to the wheel chair manufacturer C. Immediate to the wheel chair manufacturer D. Within 10 working days to the wheel chair manufacturer - ✔ ✔ D. Within 10 working days to the wheel chair manufacturer A Safety Data Sheet (SDS) (formerly called a Material Safety Data Sheet, or MSDS) must contain which of the following sets of information about a hazardous chemical? A. precautions for safe handling, emergency and first aid procedures, phone number of a poison control center B. signs and symptoms of exposure, known acute and chronic health hazards, recommended brands and sources C. odor, signs and symptoms of exposure, first aid procedures D. whether gloves, eye protectors, or other protective clothing is required during use; whether the chemical is listed as a cancer-causing agent); net weights of containers commonly available for purchase
- ✔ ✔ C. odor, signs and symptoms of exposure, first aid procedures A symptom of dehydration is:
- difficulty walking
- diarrhea
- vomiting
- poor skin turgor - ✔ ✔ 4. poor skin turgor According to OSHA rules, all work-related injuries and illnesses must be recorded if they result in any EXCEPT which one of the following? A. one or more days away from work B. first aid C. restricted work activity D. transfer to another job - ✔ ✔ B. first aid ADA accessibility standards are aimed at making buildings used by the public accessible to which one of the following? A. persons with dementia B. persons with disabilities C. the elderly D. fire department and other emergency response teams - ✔ ✔ B. persons with disabilities Advantages of the participatory method of budget making include all except which one of the following? A. Input into the budget by staff members who are knowledgeable about daily operations B. Low consumption of time and effort C. Greater awareness by department heads of the facility's resource and the needs of other departments D. Greater willingness by department heads to comply with the budget - - ✔ ✔ B. Low consumption of time and effort Advertising is usually differentiated from public relations by which one of thefollowing features? A. promotion of a product B. targeting to market segments C. use of paid media D. concern with image - ✔ ✔ C. use of paid media
B. work fewer hours. C. ask for a raise. D. produce less - ✔ ✔ D. produce less An employee with 30 years' experience at a healthcare organization was not chosen to attend a training and ask the supervisor why. The supervisor said, "You've been with the company for a long time, and I assumed you would retire before then." In doing so, the supervisor:
- did not discriminate, by assuming someone of retirement age would retire 2. discriminated against the employee because of the employee's age
- discriminated against the employee, as the employee obviously had seniority
- did not discriminate, as the employee was not a high performer - ✔ ✔ 2. discriminated against the employee because of the employee's age An individual that a person can designate to make complex healthcare decisions on their behalf is known as a:
- personal representative
- proxy decision maker
- surrogate decision maker
- legal representative - ✔ ✔ 4. legal representative An organization has $600,000 in assets and $500,000 in liabilities. Which of the following statements is best supported by this information? A. This organization is in financial trouble. B. This organization has $100,000 in cash on hand. C. This organization has enough revenue to cover expenses. D. Owners equity is $100,000 - ✔ ✔ D. Owners equity is $100, An organization is considering the purchase of a piece of equipment that costs $6,000 and has a useful life of 10 years (with no salvage value). It is estimated that the item will reduce annual operating costs by $800 over each of the next ten years. What would be the payback period? A. 7.50 years B. 1.33 years
C. 0.75 years D. Cannot be determined with the provided information - ✔ ✔ A. 7.50 years Another term for articles of incorporation is:
- charter
- by-laws
- constitution
- governing rules - ✔ ✔ 1. charter Aphasia occurs frequently as a result of: A. a stroke B. diabetes C. death of a spouse D. pressure ulcers - ✔ ✔ A. a stroke Bylaws are defined as:
- corporate duties delegated to the administrator
- state laws establishing the healthcare organization's scope of practice
- adopted rules governing the internal affairs of an organization
- the rules whereby a corporation is created under the laws of a state - ✔ ✔ 3. adopted rules governing the internal affairs of an organization Care recipients who elect to receive hospice benefits should receive:
- pain relief and symptom management
- notice that their stay can continue for a maximum of six months
- additional life-sustaining services that are covered by Medicare
- priority admission to an acute-care hospital - ✔ ✔ 3. additional life-sustaining services that are covered by Medicare Changing a bathing schedule to meet the care recipient's time preference is an example of:
- permanent assignment
B. decisions are made by the lowest person in the organization who iscapable and authorized to make decisions. C. tasks are delegated to subordinates who do not as yet have the necessary competence for the tasks, so that they will learn from the experience. D. only part of a job, rather than the whole job, is delegated to subordinates - ✔ ✔ B. decisions are made by the lowest person in the organization who iscapable and authorized to make decisions. Emergency exits must have which of the following components?
- Exit access (lit corridor), exit door (locked from inside or outside), and exit discharge (access to street or public way)
- Exit sign (must be lit), exit access (corridor), and exit (must be double doors)
- Exit sign, exit access (lit corridor), and exit door (locked from outside)
- Exit access (lit corridor), exit (must be double doors), and exit discharge (three feet of clear sidewalk) - ✔ ✔ 1. Exit access (lit corridor), exit door (locked from inside or outside), and exit discharge (access to street or public way) Establishing and Implementing policies regarding the management and operations of a healthcare organization is the responsibility of the:
- department managers
- chief executive officer
- care recipient
- governing body - ✔ ✔ 2. chief executive officer Ethics are the beliefs or attitudes that make up which kind of organizational values?
- Humanitarian
- Religious
- Moral
- Civic - ✔ ✔ 3. Moral Fill in the blanks: OSHA requires employers to report within _____________ any work-related accident that results in the hospitalization of _____________. A. five working days -- a single employee
B. 24 hours -- a single employee C. 8 hours -- three or more employees D. 24 hours -- three or more employees - ✔ ✔ B. 24 hours -- a single employee Fire drills shall be conducted how often, at a minimum? A. once each quarter B. once each quarter on each shift C. once each year on each shift D. once each month on each shift - ✔ ✔ B. once each quarter on each shif Gowns, gloves, and eye protection are examples of:
- normal work clothes
- personal protective equipment
- optional equipment paid for by the employee
- optional equipment paid for by the employee - ✔ ✔ 2. personal protective equipment hat is a major symptom of clostridium difficile? A. diarrhea B. persistent cough C. involuntary limb movements D. difficulty swallowing - ✔ ✔ A. diarrhea Healthcare organizations are in the business of marketing:
- assistance
- compassion
- wellness
- services - ✔ ✔ 4. services Healthcare organizations are required by the Occupational Safety and Health Administration (OSHA) to maintain a log and summary of occupational injuries and illnesses and to display the log in the healthcare organizations:
D. 3 - ✔ ✔ B. 4
If a facility has a current ratio of 1.00 or higher, which of the following statements is most likely to be true? A. It will have difficulty in paying its bills. B. It should consider raising its rates charged to private-pay residents. C. Its current assets exceed its current liabilities. D. Its revenues exceed its expenses. - ✔ ✔ C. Its current assets exceed its current liabilities If a medical device malfunctions, the Occupational Safety and Health Administration (OSHA) requires the administrator to report the incident to the: - ✔ ✔ manufacturing producer If a resident begins showing mental confusion, impaired judgment, and balance problems, which of the following possible causal factors should be considered first? A. conflict with a roommate B. malnutrition C. adverse drug reaction D. a foot injury - ✔ ✔ C. adverse drug reaction If a stroke survivor takes a long time in putting on his shirt, the care-giver should A. ignore this so as not to embarrass him. B. put the shirt on for him. C. encourage the person in his efforts. D. set a time limit for completing the task - ✔ ✔ C. encourage the person in his efforts. If an employee has a habit of coming to work late, an appropriate supervisory response would be to A. suspend the employee without pay. B. discuss the matter with the employee in a private conference. C. reprimand her in the presence of her workmates. D. report this to the state licensing authority. - ✔ ✔ - B. discuss the matter with the employee in a private conference
If overall revenue declines and census remains stable, an important financial area to review would be:
- balance depreciation
- asset allocation
- ancillary revenue
- interest income revenue - ✔ ✔ 3. ancillary revenue If someone needs to be fed by a tube that is passed through an artificial opening in the abdomen into the stomach, that person would need a ___________________ tube. A. gastrostomy B. jejunostomy C. nasogastric D. endotracheal - ✔ ✔ A. gastrostomy In a corporation, which of the following documents specifies the functions and composition of the governing board of directors? A. bylaws B. articles of incorporation C. prospectus D. policies and procedures manual - ✔ ✔ A. bylaws In addition to placing wet floor signs to ensure that no one walks on a wet floor, which of the following is part of the correct procedure for mopping a hallway? A. Close off the entire hallway, mop the entire hallway, and then open the hallway only when it is dry. B. Mop no more than one yard of the full hallway width at a time. C. Mop the entire hallway, then place a non-skid runner down the entire length until the hallway is dry. D. Mop one half of the length of the hallway at a time, leaving the other half open to traffic. - ✔ ✔ D. Mop one half of the length of the hallway at a time, leaving the other half open to traffic. In collective bargaining, when labor and management select a third party to decide an issue, and agree to accept that third party's decision as final andbinding on both sides, the process is called: A. mediation
Incident reports should be made out for... A. only serious injuries to customers and employees. B. all injuries to customers and serious injuries to employees. C. all incidents to customers, employees, and visitors that either resulted in injury or that may have resulted in injury. D. only for those accidents that were caused by negligence and not by intent. - ✔ ✔ C. all incidents to customers, employees, and visitors that either resulted in injury or that may have resulted in injury Larry is a care recipient at a healthcare organization. He has told several care recipients he has cancer. Another care recipient comes to the office to learn more about Larry's situation. Regarding Larry's personal information, staff:
- must tell Larry not to discuss his condition with anyone but the physician
- may not discuss Larry's situation without his permission
- must explain to Larry about keeping his medical information confidential
- can talk about Larry's situation to other care recipients - ✔ ✔ 2. may not discuss Larry's situation without his permission Management by walking around is an approach that allows the administrator to:
- see first-hand the needs of the care recipient
- control the staff in order to minimize care recipient and family complaints
- ensure the healthcare organization's license is not in jeopardy due to regulatory compliance
- innovate new approaches and physical plant improvements to enhance public relations - ✔ ✔ 1. see first-hand the needs of the care recipient Medicare is a... A. federal welfare program for the poor B. federal welfare program for aged and disabled persons C. social insurance program for the poor D. social insurance program for aged and disabled persons - ✔ ✔ D. social insurance program for aged and disabled persons
Most often a third-party payer, such as a Medicaid or a long-term insurer, will negotiate a lower rate for services rendered. The difference of funds that is uncollectables between the full charges and the amount that is actually paid by a third party payer is called:
- expense allowances
- deductions from revenue
- contractual allowances
- revenue write-off - ✔ ✔ 3. contractual allowances Mr. Luchetti enjoys talking about his adventures as a merchant seaman and hardly ever talks about the present. When he brings up those memories, what should a caregiver do? A. Stay silent and continue with care-giving tasks. B. Tell him not to dwell on the past. C. Change the subject by telling him about the activities scheduled for later in the day D. Tell him how interesting it must have been in those days and ask some questions about his experiences. - ✔ ✔ D. Tell him how interesting it must have been in those days and ask some questions about his experiences. Mrs. J has completed a Do Not Resuscitate (DNR) form. A friend of hers comes to the office, upset that Mrs. J has chosen to have a DNR, and asks for a copy of the DNR to discuss it with Mrs. J. The staff should:
- not release the DNR because it cannot be changed once it has been signed 2. call Mrs. J's physician to release the form to the visitor
- release the form so the friend can help Mrs. J understand the DNR
- not release the form because of confidentiality - ✔ ✔ 4. not release the form because of confidentiality On a balance sheet, net accounts receivable is calculated by subtracting which of the following from gross accounts receivable? A. allowance for bad debt B. depreciation expense C. aging of accounts receivable D. notes receivable - ✔ ✔ A. allowance for bad debt
