NAB: Finance & Business Practice Exam | 100% Correct Answers | Verified | Latest 2024 Version

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 _____. - 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 ______. - grandpersoned Normally, courts of appeal do not have _____. - 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. - cannibalized Annually, or more often, inventory, to determine beginning inventory, should be ______. - c. physically counted The quick ratio analysis of current assets is ______ the current ratio. - more rigorous than. is a measure of how well a company can meet its short-term financial liabilities. - 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. - current ratioThe main difference between the current ratio and the quick ratio - Quick Ratio offers a more conservative view of the company's ability to meets its short-term liabilities with its short-term assets because it does not include inventory and other current assets that are more difficult to liquidate 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 ______. - d. matching principle is the general concept of recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received. - The conservatism principle refers to the ability for financial statements, footnotes and/or supplemental schedules to provide a comprehensive and clear description of a company's financial position. - Adequate disclosure principle states that an accounting standard can be ignored if the net impact of doing so has such a small impact on the financial statements that a r