NAB CORE EXAM SCRIPT 2025/2026 QUESTIONS WITH
ANSWERS GRADED A+
✔✔Which of the following methods of conflict resolution uses a third party who reviews
the situation and makes a binding decision?
1. Litigation
2. Arbitration
3. Adjudication
4. Mediation - ✔✔2. Arbitration
✔✔Healthcare organizations are required by law to have a governing body that
__________________.
1. Has authority assigned by the administrator
2. Reports directly to the administrator, with limited authority
3. Has ultimate authority and accountability for the organization's affairs
4. Is appointed by the administrator and serves in an advisory capacity - ✔✔3. Has
ultimate authority and accountability for the organization's affairs
✔✔Because healthcare organizations can be held liable for the criminal acts of their
employees, the Office of Inspector General (OIG) encourages the implementation of
programs in __________________.
1. Employee education
2. Labor standards
3. Employee safety
4. Corporate compliance - ✔✔4. Corporate compliance
✔✔A statement outlining the desired future of the organization is the
__________________.
1. Vision
2. Mission
3. By-laws
4. Articles of incorporation - ✔✔2. Mission
✔✔Care recipient satisfaction is defined as __________________.
1. A tangible measurement
2. A service that meets or exceeds expectations
3. Family and staff surveys
4. Public perception of the community - ✔✔2. A service that meets or exceeds
expectations
✔✔Respondeat superior is a legal term that means the healthcare organization
__________________.
1. Must perform employee evaluations annually
2. Must respond to employee labor inquiries
3. Is responsible for providing employee liability protection
,4. Is responsible for employee work errors while the employee is on duty - ✔✔4. Is
responsible for employee work errors while the employee is on duty
✔✔When determining an employer's liability for the acts of employees, it is important to
ascertain __________________.
1. Personal liability
2. Civil liability
3. Qualified opinions
4. Scope of employment - ✔✔4. Scope of employment
✔✔Consensus building works best when participants are __________________.
1. Limited in time
2. Electing a spokesperson
3. Following specific guidelines
4. Asked for input - ✔✔4. Asked for input
✔✔Deception that results in damage to another is referred to as __________________.
1. Negligence
2. Fraud
3. Slander
4. Malfeasance - ✔✔2. Fraud
✔✔Which of the following documents would be used to comply with the Patient Self
Determination Act of 1990?
1. Organ donor card
2. Power of attorney
3. Notice of privacy practices
4. Durable power of attorney - ✔✔2. Power of attorney
✔✔A group that is legally designated to establish and implement policies regarding the
management of a healthcare organization is called the __________________.
1. Executive committee
2. Corporation
3. Governing body
4. Commission - ✔✔3. Governing body
✔✔When negotiating contracts with outside vendors or consultants for professional
services, contracts are not required to __________________.
1. Spell out the terms of the contract
2. Be in writing and be signed by all parties
3. Include compensation for services rendered
4. Contain a mutual indemnity clause - ✔✔4. Contain a mutual indemnity clause
✔✔The current ratio is also known as the __________________.
, 1. Contemporary ratio
2. Acid test ratio
3. Quick ratio
4. Working capital ratio - ✔✔4. Working capital ratio
✔✔Which of the following items should an administrator reference in order to determine
if there are enough funds to purchase new equipment?
1. Current assets
2. Current liabilities
3. Working capital
4. Working revenue - ✔✔3. Working capital
✔✔Professional and general liability insurance that only covers claims reported during
the policy period is operating under a/an __________________.
1. Liability-period policy
2. Claims-made policy
3. Occurrence policy
4. Risk-acceptance policy - ✔✔2. Claims-made policy
✔✔What is the book value of a vehicle purchased for $40,000 that has an accumulated
depreciation of $30,000?
1. $10,000
2. $30,000
3. $40,000
4. $70,000 - ✔✔1. $10,000
✔✔The provision a healthcare organization makes for uncollectible accounts receivable
is known as __________________.
1. Allowance for bad debts
2. Off-statement debts
3. Materiality
4. Activity-based costing - ✔✔1. Allowance for bad debts
✔✔Which of the following is a joint venture or business that meets Office of Inspector
General (OIG) standards, is legal under the Anti-Kickback Statute, and is immune from
criminal prosecution or civil sanctions?
1. Limited partnership
2. Limited-liability corporation
3. S corporation
4. Safe harbor - ✔✔1. Limited partnership
✔✔Any item of major cost that will become an asset of the healthcare organization is
__________________.
1. Called a capital expenditure
2. Voted on by the governing board
ANSWERS GRADED A+
✔✔Which of the following methods of conflict resolution uses a third party who reviews
the situation and makes a binding decision?
1. Litigation
2. Arbitration
3. Adjudication
4. Mediation - ✔✔2. Arbitration
✔✔Healthcare organizations are required by law to have a governing body that
__________________.
1. Has authority assigned by the administrator
2. Reports directly to the administrator, with limited authority
3. Has ultimate authority and accountability for the organization's affairs
4. Is appointed by the administrator and serves in an advisory capacity - ✔✔3. Has
ultimate authority and accountability for the organization's affairs
✔✔Because healthcare organizations can be held liable for the criminal acts of their
employees, the Office of Inspector General (OIG) encourages the implementation of
programs in __________________.
1. Employee education
2. Labor standards
3. Employee safety
4. Corporate compliance - ✔✔4. Corporate compliance
✔✔A statement outlining the desired future of the organization is the
__________________.
1. Vision
2. Mission
3. By-laws
4. Articles of incorporation - ✔✔2. Mission
✔✔Care recipient satisfaction is defined as __________________.
1. A tangible measurement
2. A service that meets or exceeds expectations
3. Family and staff surveys
4. Public perception of the community - ✔✔2. A service that meets or exceeds
expectations
✔✔Respondeat superior is a legal term that means the healthcare organization
__________________.
1. Must perform employee evaluations annually
2. Must respond to employee labor inquiries
3. Is responsible for providing employee liability protection
,4. Is responsible for employee work errors while the employee is on duty - ✔✔4. Is
responsible for employee work errors while the employee is on duty
✔✔When determining an employer's liability for the acts of employees, it is important to
ascertain __________________.
1. Personal liability
2. Civil liability
3. Qualified opinions
4. Scope of employment - ✔✔4. Scope of employment
✔✔Consensus building works best when participants are __________________.
1. Limited in time
2. Electing a spokesperson
3. Following specific guidelines
4. Asked for input - ✔✔4. Asked for input
✔✔Deception that results in damage to another is referred to as __________________.
1. Negligence
2. Fraud
3. Slander
4. Malfeasance - ✔✔2. Fraud
✔✔Which of the following documents would be used to comply with the Patient Self
Determination Act of 1990?
1. Organ donor card
2. Power of attorney
3. Notice of privacy practices
4. Durable power of attorney - ✔✔2. Power of attorney
✔✔A group that is legally designated to establish and implement policies regarding the
management of a healthcare organization is called the __________________.
1. Executive committee
2. Corporation
3. Governing body
4. Commission - ✔✔3. Governing body
✔✔When negotiating contracts with outside vendors or consultants for professional
services, contracts are not required to __________________.
1. Spell out the terms of the contract
2. Be in writing and be signed by all parties
3. Include compensation for services rendered
4. Contain a mutual indemnity clause - ✔✔4. Contain a mutual indemnity clause
✔✔The current ratio is also known as the __________________.
, 1. Contemporary ratio
2. Acid test ratio
3. Quick ratio
4. Working capital ratio - ✔✔4. Working capital ratio
✔✔Which of the following items should an administrator reference in order to determine
if there are enough funds to purchase new equipment?
1. Current assets
2. Current liabilities
3. Working capital
4. Working revenue - ✔✔3. Working capital
✔✔Professional and general liability insurance that only covers claims reported during
the policy period is operating under a/an __________________.
1. Liability-period policy
2. Claims-made policy
3. Occurrence policy
4. Risk-acceptance policy - ✔✔2. Claims-made policy
✔✔What is the book value of a vehicle purchased for $40,000 that has an accumulated
depreciation of $30,000?
1. $10,000
2. $30,000
3. $40,000
4. $70,000 - ✔✔1. $10,000
✔✔The provision a healthcare organization makes for uncollectible accounts receivable
is known as __________________.
1. Allowance for bad debts
2. Off-statement debts
3. Materiality
4. Activity-based costing - ✔✔1. Allowance for bad debts
✔✔Which of the following is a joint venture or business that meets Office of Inspector
General (OIG) standards, is legal under the Anti-Kickback Statute, and is immune from
criminal prosecution or civil sanctions?
1. Limited partnership
2. Limited-liability corporation
3. S corporation
4. Safe harbor - ✔✔1. Limited partnership
✔✔Any item of major cost that will become an asset of the healthcare organization is
__________________.
1. Called a capital expenditure
2. Voted on by the governing board
