NAB Study Guide Questions Exam Questions
With Accurate Answers 2025\2026 A+ Grade
Education and training programs.
- accurate answers-To obtain more accurate cost estimates and more control
over costs (participatory budget making process - others are more likely to
consider the budget legitimate).
A change in which one of the following is not likely to be the cause of a budget
variance?
- accurate answers-The personal needs allowance.
"Assets are always equal to the sum of liabilities plus owners' equity" is the
basic concept in the organization of the:
- accurate answers-Balance Sheet.
The financial success or failure of a nursing facility is usually measured by its:
- accurate answers-Return on Equity (net income - i.e., revenues in excess of
expenses) and divides it by owners' equity).
If a facility has a current ratio greater than 1, which of the following
statements is most likely to be true?
- accurate answers-It will be able to pay its bills on time (current ratio greater
than 1 means that the organization's current assets exceed its current
liabilities, and this indicates a good ability to pay short-term liabilities as they
come in).
A check should generally be issued only when which one of the following is
available and properly signed?
- accurate answers-Purchase Order.
The importance of matching revenue with the expenses incurred in
generating those revenues is the reason for recording which one of the
following?
- accurate answers-Depreciation (the purpose of recognizing depreciation is
to satisfy the Matching Principle (GAAP) stated in this question).
Using the straight-line method, what would be the annual depreciation
expense for a piece of equipment having a cost of $6,000.00, a manufacturer's
,warranty for 2 years, and an estimated useful life of 6 years?
- accurate answers-$1,000.
Which of the following is a current asset?
- accurate answers-Accounts Receivables.
Under the accrual basis of accounting, revenues are recorded when _______ and
expenses are recorded when ______________.
- accurate answers-Revenues are earned - expenses are incurred.
A generally accepted accounting principle (GAAP) would be violated if a
company:
- accurate answers-Used in its balance sheet an optimistic estimate of the
current market value of its building (the use of current market value rather
than historical costs would not be consistent with the Objectivity GAAP, and
the use of an optimistic rather than conservative estimate would violate the
Conservatism GAAP).
Last year's food costs for a 100-bed facility were $146,820. The facility had an
average occupancy rate of 85% that year. What was this facility's food cost per
patient day (PPD)?
- accurate answers-$4.73
The Medicare benefit period ends when a beneficiary
- accurate answers-Has had 60 straight days with neither any hospital days
nor SNF days
Medicare Part A coverage of skilled nursing facility (SNF) care entails out-of-
pocket payment by the patient of a daily amount for which days of SNF care in
a benefit period?
- accurate answers-21st through 100th
Which of the following statements is NOT true regarding the Medicare
Prospective Payment System for Skilled Nursing Facilities?
- accurate answers-There are separate prospective rates for capital-related
costs (Medicare does not make separate reimbursement to SNFs for capital-
related costs. The RUG rate that the facility receives is expected to cover all
types of costs).
, A RUG is a:
- accurate answers-Category in a resident classification system.
Completion of the Medicare cost report requires carrying out all except which
one of the following tasks?
- accurate answers-Aging of accounts receivable.
The term for unintentional improper or excessive use of benefits of a health
insurance program is:
- accurate answers-Abuse.
The process by which an individual becomes eligible for Medicaid by incurring
medical expenses until personal resources fall below a specified ceiling is
called:
- accurate answers-Spend Down
Which of the following statements regarding budgeting procedure is correct?
- accurate answers-A cash budget may provide advance warning of months
when cash outlays fall short of cash receipts.
An example of a variable cost is:
- accurate answers-Nursing supplies.
If the facility's occupancy increases from 94% to 98%, the fixed cost per
resident
- accurate answers-Decreases slightly (Fixed cost per resident is calculated by
dividing total fixed costs by number of residents (currently-occupied beds). If
the occupancy rate increases slightly, fixed costs do not change (by definition),
and number of residents increase, resulting in a decreased fixed cost per
resident. Another way of saying this is that the fixed costs are spread over a
larger number of residents.
A nursing home is considering the purchase of a new dish-washing machine
that costs $6,000 and has a useful life of 10 years (with no salvage value). It is
estimated that the machine will reduce annual operating costs by $800 over
each of the next ten years. What is the payback period?
- accurate answers-7.50 years.
With Accurate Answers 2025\2026 A+ Grade
Education and training programs.
- accurate answers-To obtain more accurate cost estimates and more control
over costs (participatory budget making process - others are more likely to
consider the budget legitimate).
A change in which one of the following is not likely to be the cause of a budget
variance?
- accurate answers-The personal needs allowance.
"Assets are always equal to the sum of liabilities plus owners' equity" is the
basic concept in the organization of the:
- accurate answers-Balance Sheet.
The financial success or failure of a nursing facility is usually measured by its:
- accurate answers-Return on Equity (net income - i.e., revenues in excess of
expenses) and divides it by owners' equity).
If a facility has a current ratio greater than 1, which of the following
statements is most likely to be true?
- accurate answers-It will be able to pay its bills on time (current ratio greater
than 1 means that the organization's current assets exceed its current
liabilities, and this indicates a good ability to pay short-term liabilities as they
come in).
A check should generally be issued only when which one of the following is
available and properly signed?
- accurate answers-Purchase Order.
The importance of matching revenue with the expenses incurred in
generating those revenues is the reason for recording which one of the
following?
- accurate answers-Depreciation (the purpose of recognizing depreciation is
to satisfy the Matching Principle (GAAP) stated in this question).
Using the straight-line method, what would be the annual depreciation
expense for a piece of equipment having a cost of $6,000.00, a manufacturer's
,warranty for 2 years, and an estimated useful life of 6 years?
- accurate answers-$1,000.
Which of the following is a current asset?
- accurate answers-Accounts Receivables.
Under the accrual basis of accounting, revenues are recorded when _______ and
expenses are recorded when ______________.
- accurate answers-Revenues are earned - expenses are incurred.
A generally accepted accounting principle (GAAP) would be violated if a
company:
- accurate answers-Used in its balance sheet an optimistic estimate of the
current market value of its building (the use of current market value rather
than historical costs would not be consistent with the Objectivity GAAP, and
the use of an optimistic rather than conservative estimate would violate the
Conservatism GAAP).
Last year's food costs for a 100-bed facility were $146,820. The facility had an
average occupancy rate of 85% that year. What was this facility's food cost per
patient day (PPD)?
- accurate answers-$4.73
The Medicare benefit period ends when a beneficiary
- accurate answers-Has had 60 straight days with neither any hospital days
nor SNF days
Medicare Part A coverage of skilled nursing facility (SNF) care entails out-of-
pocket payment by the patient of a daily amount for which days of SNF care in
a benefit period?
- accurate answers-21st through 100th
Which of the following statements is NOT true regarding the Medicare
Prospective Payment System for Skilled Nursing Facilities?
- accurate answers-There are separate prospective rates for capital-related
costs (Medicare does not make separate reimbursement to SNFs for capital-
related costs. The RUG rate that the facility receives is expected to cover all
types of costs).
, A RUG is a:
- accurate answers-Category in a resident classification system.
Completion of the Medicare cost report requires carrying out all except which
one of the following tasks?
- accurate answers-Aging of accounts receivable.
The term for unintentional improper or excessive use of benefits of a health
insurance program is:
- accurate answers-Abuse.
The process by which an individual becomes eligible for Medicaid by incurring
medical expenses until personal resources fall below a specified ceiling is
called:
- accurate answers-Spend Down
Which of the following statements regarding budgeting procedure is correct?
- accurate answers-A cash budget may provide advance warning of months
when cash outlays fall short of cash receipts.
An example of a variable cost is:
- accurate answers-Nursing supplies.
If the facility's occupancy increases from 94% to 98%, the fixed cost per
resident
- accurate answers-Decreases slightly (Fixed cost per resident is calculated by
dividing total fixed costs by number of residents (currently-occupied beds). If
the occupancy rate increases slightly, fixed costs do not change (by definition),
and number of residents increase, resulting in a decreased fixed cost per
resident. Another way of saying this is that the fixed costs are spread over a
larger number of residents.
A nursing home is considering the purchase of a new dish-washing machine
that costs $6,000 and has a useful life of 10 years (with no salvage value). It is
estimated that the machine will reduce annual operating costs by $800 over
each of the next ten years. What is the payback period?
- accurate answers-7.50 years.
