NAB Finance Exam 2026 Questions and
Answers
Balance Sheet - Correct Answer -Records what an organization owns, what it
owes, and what it is worth at a particular point in time
Benchmarking - Correct Answer -The continuous process of measuring products,
services, and activities against the best levels of performance. Best levels may be
found inside or outside the organization.
Book Value - Correct Answer -The book value also known as net book value of a
fixed asset is a balance sheet figure that represents the remaining undepreciated
portion of the fixed asset cost
Break-Even Point - Correct Answer -The point when the contribution margin (net
revenue less variable costs) equals the fixed cost.
Budget - Correct Answer -The organization-wide instrument through which
activities are quantified in financial terms.
Business Plan - Correct Answer -A document that is typically prepared in order to
obtain funding and/or financing.
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,Budget - Correct Answer -Represents the financial resources of the organization.
Generally considered to be a combination of debt and equity.
Capital Expenditure Budget: - Correct Answer -A budget usually intended to plan,
monitor, and control long-term financial issues.
Capital Structure - Correct Answer -Means the proportion of debt versus equity
within the organization. The phrase "capital structure" actually refers to the debt-
equity relationship.
Case Mix Adjusted - Correct Answer -A performance measure that has been
adjusted for the acuity level of the patient and , presumably, the resource level
required to provide care.
Cash Basis Accounting - Correct Answer -A transaction does not enter the books
until cash is either received or paid out. The opposite of cash basis is accrual basis
accounting.
Cash Flow Analysis - Correct Answer -This type of analysis illustrates how the
project's cash is expected to move over a period of time.
Certified EHR Technology - Correct Answer -An electronic health record (EHR)
that has been specially certified for use in the EHR Incentive Programs.
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, Chart of Accounts - Correct Answer -Maps out account titles in a uniform manner
through a method of numeric coding
Common Sizing - Correct Answer -a process of converting dollar amounts to
percentages to put information on the same relative basis. Also know an vertical
analysis
Contribution Income Statement - Correct Answer -Specifically identifies the
contribution margin within the income statement format.
Contribution Margin - Correct Answer -Called this because it contributes to fixed
costs and to profits. Computed as net revenues less variable costs.
Controllable Expenses - Correct Answer -Subject to a manager's own decision
making and thus "controllable"
Controlling - Correct Answer -Making sure that each area of the organization is
following the plans that have been established
Core Objectives - Correct Answer -EHR Incentive Program criteria that is
necessary to achieve meaningful use. core objectives are mandatory; thus the
provider must meet all applicable core objectives.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 3
Answers
Balance Sheet - Correct Answer -Records what an organization owns, what it
owes, and what it is worth at a particular point in time
Benchmarking - Correct Answer -The continuous process of measuring products,
services, and activities against the best levels of performance. Best levels may be
found inside or outside the organization.
Book Value - Correct Answer -The book value also known as net book value of a
fixed asset is a balance sheet figure that represents the remaining undepreciated
portion of the fixed asset cost
Break-Even Point - Correct Answer -The point when the contribution margin (net
revenue less variable costs) equals the fixed cost.
Budget - Correct Answer -The organization-wide instrument through which
activities are quantified in financial terms.
Business Plan - Correct Answer -A document that is typically prepared in order to
obtain funding and/or financing.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 1
,Budget - Correct Answer -Represents the financial resources of the organization.
Generally considered to be a combination of debt and equity.
Capital Expenditure Budget: - Correct Answer -A budget usually intended to plan,
monitor, and control long-term financial issues.
Capital Structure - Correct Answer -Means the proportion of debt versus equity
within the organization. The phrase "capital structure" actually refers to the debt-
equity relationship.
Case Mix Adjusted - Correct Answer -A performance measure that has been
adjusted for the acuity level of the patient and , presumably, the resource level
required to provide care.
Cash Basis Accounting - Correct Answer -A transaction does not enter the books
until cash is either received or paid out. The opposite of cash basis is accrual basis
accounting.
Cash Flow Analysis - Correct Answer -This type of analysis illustrates how the
project's cash is expected to move over a period of time.
Certified EHR Technology - Correct Answer -An electronic health record (EHR)
that has been specially certified for use in the EHR Incentive Programs.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
, Chart of Accounts - Correct Answer -Maps out account titles in a uniform manner
through a method of numeric coding
Common Sizing - Correct Answer -a process of converting dollar amounts to
percentages to put information on the same relative basis. Also know an vertical
analysis
Contribution Income Statement - Correct Answer -Specifically identifies the
contribution margin within the income statement format.
Contribution Margin - Correct Answer -Called this because it contributes to fixed
costs and to profits. Computed as net revenues less variable costs.
Controllable Expenses - Correct Answer -Subject to a manager's own decision
making and thus "controllable"
Controlling - Correct Answer -Making sure that each area of the organization is
following the plans that have been established
Core Objectives - Correct Answer -EHR Incentive Program criteria that is
necessary to achieve meaningful use. core objectives are mandatory; thus the
provider must meet all applicable core objectives.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 3
