NAB NHA Domain 2 - Operations Verified Exam
Questions and Answers 2026/2027
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Terms in this set (213)
Accelerated Method of Depreciation A depreciation method that allows for larger amounts
of depreciation in early years and smaller amounts in
later years. The double declining-balance method is
an example. (This enables the owner to receive tax
and/or reimbursement benefits more quickly than
using the straight line method.
Accounting The process of identifying, recording, and
communicating information about the financial
position and results of operations of a business entity,
using principles designed to facilitate informed
decision-making by the entity's managers as well as by
external groups.
,Accounting Equation Assets = Liabilities + Owners' Equity (capital). This
equation states that the assets of a firm are equal to
the claims of the creditors plus the claims of the
owners. The balance sheet is a detailed statement of
this equation.
Accounts Payable Amounts owed to suppliers for goods and services.
Accounts Receivable Amounts owed to the facility for services or for the
sale of goods.
Accrual Basis of Accounting A system of accounting in which revenues are
recorded in the period earned, and expenses are
recorded in the period incurred even if cash is
received or paid in a later or earlier time period.
(Contrast with CASH BASIS of accounting)
Accumulated Depreciation The total depreciation from the start of the life of a
plant asset to any point in time. On the balance sheet,
there is a deduction for accumulated depreciation
taken from the gross evaluation of depreciable plant
and equipment to yield a net evaluation.
, Acid-Test Ratio (or Quick Ratio) Cash and other current assets that can be converted
to cash right away (such as marketable securities and
current receivables) divided by current liabilities. A
measure of the ability of a firm to pay its current
liabilities in the very short term (see also CURRENT
RATIO).
Adjusting Entries Entries made at the end of an accounting period to
record certain transactions or other accounting events
that have not been recorded or have been improperly
recorded during the accounting period. Examples
include entries for depreciation expense and unused
portions of prepaid expenses.
Administrative Information System Information technology that is designed to assist in
carrying out financial and administrative support
activities such as payroll, patient accounting, billing,
accounts receivable, materials management,
budgeting, cost control and office automation.
Adverse Impact Under the Civil Rights Act of 1964 and its amendments,
adverse impact occurs whenever the selection rate
for any protected group is less than 80% of the rate
for the group with the highest rate. The focus is on the
hiring standard used by the employer as a method of
screening applicants. "The burden of proof is on the
employer to show that a hiring standard is job
related."
Affirmative Action Review of a facility's hiring practices (recruiting,
advertising, and data on the applicants) by the federal
government to ensure conformity to the 1964 Civil
Rights Act and its amendments. Legal violations can
be processed if it is determined that the facility has
discriminated based on age, sex, marital status, race,
religion, handicap or national origin.
Questions and Answers 2026/2027
Play your way to mastery with fun games
Match Blocks Charms NEW
Terms in this set (213)
Accelerated Method of Depreciation A depreciation method that allows for larger amounts
of depreciation in early years and smaller amounts in
later years. The double declining-balance method is
an example. (This enables the owner to receive tax
and/or reimbursement benefits more quickly than
using the straight line method.
Accounting The process of identifying, recording, and
communicating information about the financial
position and results of operations of a business entity,
using principles designed to facilitate informed
decision-making by the entity's managers as well as by
external groups.
,Accounting Equation Assets = Liabilities + Owners' Equity (capital). This
equation states that the assets of a firm are equal to
the claims of the creditors plus the claims of the
owners. The balance sheet is a detailed statement of
this equation.
Accounts Payable Amounts owed to suppliers for goods and services.
Accounts Receivable Amounts owed to the facility for services or for the
sale of goods.
Accrual Basis of Accounting A system of accounting in which revenues are
recorded in the period earned, and expenses are
recorded in the period incurred even if cash is
received or paid in a later or earlier time period.
(Contrast with CASH BASIS of accounting)
Accumulated Depreciation The total depreciation from the start of the life of a
plant asset to any point in time. On the balance sheet,
there is a deduction for accumulated depreciation
taken from the gross evaluation of depreciable plant
and equipment to yield a net evaluation.
, Acid-Test Ratio (or Quick Ratio) Cash and other current assets that can be converted
to cash right away (such as marketable securities and
current receivables) divided by current liabilities. A
measure of the ability of a firm to pay its current
liabilities in the very short term (see also CURRENT
RATIO).
Adjusting Entries Entries made at the end of an accounting period to
record certain transactions or other accounting events
that have not been recorded or have been improperly
recorded during the accounting period. Examples
include entries for depreciation expense and unused
portions of prepaid expenses.
Administrative Information System Information technology that is designed to assist in
carrying out financial and administrative support
activities such as payroll, patient accounting, billing,
accounts receivable, materials management,
budgeting, cost control and office automation.
Adverse Impact Under the Civil Rights Act of 1964 and its amendments,
adverse impact occurs whenever the selection rate
for any protected group is less than 80% of the rate
for the group with the highest rate. The focus is on the
hiring standard used by the employer as a method of
screening applicants. "The burden of proof is on the
employer to show that a hiring standard is job
related."
Affirmative Action Review of a facility's hiring practices (recruiting,
advertising, and data on the applicants) by the federal
government to ensure conformity to the 1964 Civil
Rights Act and its amendments. Legal violations can
be processed if it is determined that the facility has
discriminated based on age, sex, marital status, race,
religion, handicap or national origin.
