Federal Nursing Home Administrator Practice Exam

Which term refers to the things that a facility owns?

1. Liabilities

2. Assets

3. Capital

4. Revenues

The correct answer is: Assets

The term that refers to the things that a facility owns is "Assets." In financial terms, assets encompass a wide range of items that a healthcare facility, such as a nursing home, holds, including physical items like equipment, real estate, and furniture, as well as intangible items like patents or trademarks. The importance of assets lies in their value, as they represent resources that can be used to generate revenue or support operations. Liabilities, on the other hand, refer to what the facility owes to others, such as loans or outstanding payments. Capital is often related to the funding or financial resources available to the facility, while revenues represent the income generated from operations or services provided. Thus, assets play a crucial role in understanding the financial health of the facility.