NAB: Finance & Business Practice Exam questions and verified answers

The new accountant informs the administrator that to simplify things, he has incorporated all purchases that will be paid for the next few years into the accounts payable journal. The administrator should _____. - correct answer c. begin a search for a new accountant The administrator seeks to be licensed without having to meet all the conditions new entrants would have to meet. He/she seeks to be ______. - correct answer grandpersoned Normally, courts of appeal do not have _____. - correct answer original jurisdiction. The administrator decides to offer newer forms of physical therapy that reduce use of currently used physical therapy methods. He/she has ______ the current methods. - correct answer cannibalized Annually, or more often, inventory, to determine beginning inventory, should be ______. - correct answer c. physically counted The quick ratio analysis of current assets is ______ the current ratio. - correct answer more rigorous than. is a measure of how well a company can meet its short-term financial liabilities. - correct answer quick ratio analysis - Also known as the acid-test ratio, it can be calculated as follows: (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities. a liquidity and efficiency ratio that measures a firm's ability to pay off its short-term liabilities with its current assets. It is an important measure of liquidity because short-term liabilities are due within the next year. - correct answer current ratio