NAB Finance Study Guide Material - Complete Verified Answer Set

NAB Finance Study Guide Material - Complete Verified Answer Set The administrator applies a discount (capitalization) rate to future payments(s), sometimes known as the "discounted cash flow method" to estimate the fair market value of a potential investment. He/she is calculating ______ value. Select one: a. future b. long range investment c. present d. relative - answer - c. present The duty to have and to use the degree of knowledge and skill that is usually possessed and used by competent, prudent health care providers in like or similar circumstances is the ______ which nursing facilities are expected to meet. Select one: a. level of care b. degree of care c. standard of care d. level of excellence - answer - c. standard of care Journals are the ______ place that transactions are recorded; they are the books of ______. Select one: a. first original b. main official records c. primary final d. first final entry - answer - a. first original One who makes an agreement with another person to perform a job, but remains in control of the means and methods of performing the job and retains the right to terminate the contract is a(an) ______. Select one: a. sub-contractor b. contractor c. independent contractor d. dependent contractor - answer - a. sub-contractor Records of transactions that do not fit into any of the other journals go into ______. Select one: a. the general ledger b. the general journal c. the main financial statements d. notes to financial statements - answer - b. the general journal Nursing and physical therapy are normally thought of as _____ centers. Select one: a. cost b. loss c. revenue d. break-even - answer - c. revenue An accounting principle requiring the facility to correspond the revenues it earns in a given period to the expenses it incurred during that same period is the ______. Select one: a. materiality principle b. adequate disclosure principle c. conservatism concept d. matching principle - answer - d. matching principle The facility has issued a debt obligation to pay a specific amount on a stated date. The facility has issued ______. Select one: a. letters of credit b. notes c. bonds d. financial instruments - answer - c. bonds A 1-year-old, 120-bed for-profit facility with a $2,500,000 mortgage at 5.4% reports a net operating margin before depreciation of $25,000. In today's financial market, the owners would likely be _____. Select one: a. very pleased b. very displeased c. seeking to sell the facility as a result d. seeking to refinance as a result - answer - a. very pleased Because income and expenses vary from time period to time period it is desirable to project a _____ budget. Select one: a. cash b. balanced c. forecasted d. capital - answer - a. cash A Latin phrase meaning to stand by earlier court decisions is ____. Select one: a. stare decisis b. res judicata c. res ipsa loquitur d. respondeat superior - answer - a. stare decisis a matter that has been adjudicated by a competent court and may not be pursued further by the same parties. - answer - res judicata the principle that the occurrence of an accident implies negligence. - answer - res ipsa loquitur (Latin: "let the master answer"; plural: respondeant superiores) is a US legal doctrine which states that, in many circumstances, an employer is responsible for the actions of employees performed within the course of their employment. - answer - respondeat superior As a practical matter, most owners do not fund depreciation and treat it as _____. Select one: a. money available to the facility to spend b. money to be placed in reserve c. a fiction d. a useless set of required calculations - answer - a. money available to the facility to spend Trends and patterns in the operation of a nursing facility can best be obtained by doing _____. Select one: a. ratio analyses b. vertical analyses c. ratio and vertical analyses over time d. ratio and vertical analyses - answer - c. ratio and vertical analyses over time T