Wisconsin Nursing Home Administrators (NHA) Practice Exam

The department shall establish a uniform classification of accounts and accounting procedures based on generally accepted accounting principles to reflect the allocation of what?

1. Assets and debts

2. Income and expenditure

3. Operations and maintenance costs

4. Revenues and expenses

The correct answer is: Revenues and expenses

The correct answer is D, "Revenues and expenses." In long-term care facilities such as nursing homes, it is crucial to accurately track and report revenues and expenses to ensure financial stability and compliance. Monitoring revenues (money coming in) and expenses (money going out) is vital for budgeting, financial planning, and decision-making. By following generally accepted accounting principles and maintaining a proper classification of accounts, nursing home administrators can precisely allocate resources, identify financial trends, and make informed decisions regarding the operations of the facility. This classification provides a clear understanding of the financial health of the nursing home and supports transparency in financial reporting.