NAB 2024 Exam Questions With 100%
Correct Answers
Accounting Equation - Correct Answer Assets = Liabilities + Owner's Equity (A = L + OE) + (Revenues - Expenses)
Working capital formula - Correct Answer current assets - current liabilities
Statement of Changes - Correct Answer Shows how the facility acquired and uses its funds
Current Asset - Correct Answer Possession of the facility that will be/ can be turned into cash within 12 months. Ex - prepaid insurance.
Noncurrent asset - Correct Answer Will not be liquidated within a year. Includes plant, property and equipment.
Aka Fixed assets. Recorded by cost at time of purchase rather than market value
Historic Cost Concept - Correct Answer The concept requires that assets are recorded in the book at their original cost to the business since current market value not relevant.
Depreciation - Correct Answer Expense associated with asset use. It is included as both an expense in the Income Statement and a contra-asset on the Balance Sheet.
Liabilities - Correct Answer Obligations of the facility
Current Liabilities - Correct Answer obligations that must be met within a year - bills from suppliers and short-term bank loans.
Notes Payable - Correct Answer Loans that are repaid within 12 months
Capital Accounts - Correct Answer Includes funds owners have put into facility. Net worth also includes retained earnings or net income that has been put back into the facility.
Correct Answers
Accounting Equation - Correct Answer Assets = Liabilities + Owner's Equity (A = L + OE) + (Revenues - Expenses)
Working capital formula - Correct Answer current assets - current liabilities
Statement of Changes - Correct Answer Shows how the facility acquired and uses its funds
Current Asset - Correct Answer Possession of the facility that will be/ can be turned into cash within 12 months. Ex - prepaid insurance.
Noncurrent asset - Correct Answer Will not be liquidated within a year. Includes plant, property and equipment.
Aka Fixed assets. Recorded by cost at time of purchase rather than market value
Historic Cost Concept - Correct Answer The concept requires that assets are recorded in the book at their original cost to the business since current market value not relevant.
Depreciation - Correct Answer Expense associated with asset use. It is included as both an expense in the Income Statement and a contra-asset on the Balance Sheet.
Liabilities - Correct Answer Obligations of the facility
Current Liabilities - Correct Answer obligations that must be met within a year - bills from suppliers and short-term bank loans.
Notes Payable - Correct Answer Loans that are repaid within 12 months
Capital Accounts - Correct Answer Includes funds owners have put into facility. Net worth also includes retained earnings or net income that has been put back into the facility.
