NAB Study Guide |126 Questions| with correct answers

Education and training programs. CORRECT ANSWER 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? CORRECT ANSWER 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: CORRECT ANSWER Balance Sheet. The financial success or failure of a nursing facility is usually measured by its: CORRECT ANSWER 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? CORRECT ANSWER 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? CORRECT ANSWER 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? CORRECT ANSWER 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? CORRECT ANSWER $1,000.