NAB STUDY GUIDE EXAM 2026
WITH 125 QUESTIONS AND 100%
ACCURATE ANSWERS | ALREADY
GRADED A+ | GUARANTEED
SUCCESS | GRADED A+
GUARANTEED PASS | NAB STUDY
FINAL EXAM 2026
The term for unintentional improper or excessive use of benefits of a health
insurance program is: - ANSWER-Abuse.
The process by which an individual becomes eligible for Medicaid by incurring
medical expenses until personal resources fall below a specified ceiling is
called: - ANSWER-Spend Down
Which of the following statements regarding budgeting procedure is correct? -
ANSWER-A cash budget may provide advance warning of months when cash
outlays fall short of cash receipts.
An example of a variable cost is: - ANSWER-Nursing supplies.
If the facility's occupancy increases from 94% to 98%, the fixed cost per
resident - ANSWER-Decreases slightly (Fixed cost per resident is calculated by
dividing total fixed costs by number of residents (currently-occupied beds). If
the occupancy rate increases slightly, fixed costs do not change (by definition),
and number of residents increase, resulting in a decreased fixed cost per
,resident. Another way of saying this is that the fixed costs are spread over a
larger number of residents.
A nursing home is considering the purchase of a new dish-washing machine that
costs $6,000 and has a useful life of 10 years (with no salvage value). It is
estimated that the machine will reduce annual operating costs by $800 over each
of the next ten years. What is the payback period? - ANSWER-7.50 years.
What happened in this scenario that should not have happened if financial
recording and internal control principles were followed? A facility receives a
check by mail for services rendered to a resident. A staff member in the
business office immediately stamps the check as "For deposit only" in the name
of the facility. She then makes entries in the cash receipts journal and in the
resident's account for later posting to the cash account and the accounts
receivable account. Later in the day, this staff person goes to the bank, deposits
the check in the facility account, and picks up a deposit receipt. Upon her return
to the facility, then files the deposit receipt in the file for this purpose. -
ANSWER-The person who recorded the check should not have been the same
person who made the bank deposit (segregation of duties was violated).
The type of insurance that would cover the facility if it were sued by a resident
who was injured as the result of a medication error by a nurse employee is: -
ANSWER-Professional Liability (Malpractice).
Business interruption insurance covers: - ANSWER-Loss of revenue from
having to keep beds empty while a unit undergoes repairs due to wind damage
to a building
A W-4 form shows each employee's: - ANSWER-Number of claimed
exemptions for withholding purposes.
To obtain maximum reimbursement under the Medicare Prospective Payment
Systems a skilled nursing facility should do all except which one of the
following? - ANSWER-Have physical therapists who serve Part A-covered
, residents bill Medicare directly (the consolidated billing rules prohibit separate
billing for physical therapy (and occupational therapy and speech-language
pathology therapy) provided to a Medicare beneficiary on a Part A-covered
stay).
Which of the following practices is illegal for a Medicaid-certified facility? -
ANSWER-Requiring the payment of a facility's private-pay rate for a certain
number of months as a condition for admission.
Which of the following is most likely to be part of the responsibilities of a
compliance officer? - ANSWER-Investigating and acting on certain kinds of
problems that employees report regarding claims submissions to third-party
payers.
Which of the following is not true? Individuals involved in strategic planning
should include: - ANSWER-Residents and Families (while input from these
should be considered on selective initiatives, they are not part of the facility
strategic planning process).
When addressing an identified problem with facility policy it is most important
for the administrator to first: - ANSWER-Discuss with the appropriate
department manager (discuss problem with dept. manager and jointly determine
fact gathering steps).
Which of the following responsibilities of the governing body of a facility is not
true? - ANSWER-Selecting and hiring the director of nursing (administrator
hires DON)
When examining employee retention the administrator should first examine: -
ANSWER-Employee turnover (current status of staff turnover to measure the
effectiveness of policy and procedural changes aimed at retention)
WITH 125 QUESTIONS AND 100%
ACCURATE ANSWERS | ALREADY
GRADED A+ | GUARANTEED
SUCCESS | GRADED A+
GUARANTEED PASS | NAB STUDY
FINAL EXAM 2026
The term for unintentional improper or excessive use of benefits of a health
insurance program is: - ANSWER-Abuse.
The process by which an individual becomes eligible for Medicaid by incurring
medical expenses until personal resources fall below a specified ceiling is
called: - ANSWER-Spend Down
Which of the following statements regarding budgeting procedure is correct? -
ANSWER-A cash budget may provide advance warning of months when cash
outlays fall short of cash receipts.
An example of a variable cost is: - ANSWER-Nursing supplies.
If the facility's occupancy increases from 94% to 98%, the fixed cost per
resident - ANSWER-Decreases slightly (Fixed cost per resident is calculated by
dividing total fixed costs by number of residents (currently-occupied beds). If
the occupancy rate increases slightly, fixed costs do not change (by definition),
and number of residents increase, resulting in a decreased fixed cost per
,resident. Another way of saying this is that the fixed costs are spread over a
larger number of residents.
A nursing home is considering the purchase of a new dish-washing machine that
costs $6,000 and has a useful life of 10 years (with no salvage value). It is
estimated that the machine will reduce annual operating costs by $800 over each
of the next ten years. What is the payback period? - ANSWER-7.50 years.
What happened in this scenario that should not have happened if financial
recording and internal control principles were followed? A facility receives a
check by mail for services rendered to a resident. A staff member in the
business office immediately stamps the check as "For deposit only" in the name
of the facility. She then makes entries in the cash receipts journal and in the
resident's account for later posting to the cash account and the accounts
receivable account. Later in the day, this staff person goes to the bank, deposits
the check in the facility account, and picks up a deposit receipt. Upon her return
to the facility, then files the deposit receipt in the file for this purpose. -
ANSWER-The person who recorded the check should not have been the same
person who made the bank deposit (segregation of duties was violated).
The type of insurance that would cover the facility if it were sued by a resident
who was injured as the result of a medication error by a nurse employee is: -
ANSWER-Professional Liability (Malpractice).
Business interruption insurance covers: - ANSWER-Loss of revenue from
having to keep beds empty while a unit undergoes repairs due to wind damage
to a building
A W-4 form shows each employee's: - ANSWER-Number of claimed
exemptions for withholding purposes.
To obtain maximum reimbursement under the Medicare Prospective Payment
Systems a skilled nursing facility should do all except which one of the
following? - ANSWER-Have physical therapists who serve Part A-covered
, residents bill Medicare directly (the consolidated billing rules prohibit separate
billing for physical therapy (and occupational therapy and speech-language
pathology therapy) provided to a Medicare beneficiary on a Part A-covered
stay).
Which of the following practices is illegal for a Medicaid-certified facility? -
ANSWER-Requiring the payment of a facility's private-pay rate for a certain
number of months as a condition for admission.
Which of the following is most likely to be part of the responsibilities of a
compliance officer? - ANSWER-Investigating and acting on certain kinds of
problems that employees report regarding claims submissions to third-party
payers.
Which of the following is not true? Individuals involved in strategic planning
should include: - ANSWER-Residents and Families (while input from these
should be considered on selective initiatives, they are not part of the facility
strategic planning process).
When addressing an identified problem with facility policy it is most important
for the administrator to first: - ANSWER-Discuss with the appropriate
department manager (discuss problem with dept. manager and jointly determine
fact gathering steps).
Which of the following responsibilities of the governing body of a facility is not
true? - ANSWER-Selecting and hiring the director of nursing (administrator
hires DON)
When examining employee retention the administrator should first examine: -
ANSWER-Employee turnover (current status of staff turnover to measure the
effectiveness of policy and procedural changes aimed at retention)
