Federal Nursing Home Administrator Practice Exam

Which term describes funds that are currently available for use in the nursing home?

1. Assets

2. Liabilities

3. Equity

4. Revenue

The correct answer is: Assets

The term that describes funds currently available for use in the nursing home is "assets." Assets refer to any resources that a business owns and that can provide future economic benefits. In the context of a nursing home, this can include cash, accounts receivable, and any other liquid resources that can be readily utilized for operations or investments. Having available assets is critical for the financial health of the nursing home, as they determine the facility's ability to meet its day-to-day operational needs, pay staff, purchase supplies, and maintain the quality of care provided to residents. Understanding the definitions of the other terms can further clarify why "assets" is the correct choice in this context. Liabilities are obligations that the nursing home must pay in the future, such as loans or unpaid bills, which do not represent available funds. Equity represents the ownership value in the nursing home after all liabilities have been deducted from assets, meaning it is not a current fund available for operational use. Revenue pertains to the income generated by the nursing home from its services, which contributes to overall financial health but is not a direct measure of current available funds.