NAB: Finance & Business Practice Exam
100% Correct!!
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
_____. - ANSWERSc. 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 ______. - ANSWERSgrandpersoned
Normally, courts of appeal do not have _____. - ANSWERSoriginal 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. - ANSWERScannibalized
Annually, or more often, inventory, to determine beginning inventory, should be ______. - ANSWERSc.
physically counted
The quick ratio analysis of current assets is ______ the current ratio. - ANSWERSmore rigorous than.
is a measure of how well a company can meet its short-term financial liabilities. - ANSWERSquick 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. - ANSWERScurrent ratio
, The main difference between the current ratio and the quick ratio - ANSWERSQuick 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 ______. - ANSWERSd. 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. - ANSWERSThe 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. - ANSWERSAdequate 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 reader of the financial statements would not be misled. -
ANSWERSThe materiality principle
a formal charge or accusation of a serious crime. - ANSWERSindictment
a judicial order that restrains a person from beginning or continuing an action threatening or invading
the legal right of another, or that compels a person to carry out a certain act, e.g., to make restitution to
an injured party. - ANSWERSinjunction
Money invested in the facility, also known as the facility's net worth, is normally referred to as _____. -
ANSWERScapital
Act that generally establishes employer responsibility without regard to fault or negligence for
employees' illness or injuries that arise out of performance of the job are known as ____. -
ANSWERSWorker's Compensation Act.
A revision of an accounting forecast or assumption about the facility's expected or experienced
performance is a/an ______. - ANSWERSchange in accounting estimate.
100% Correct!!
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
_____. - ANSWERSc. 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 ______. - ANSWERSgrandpersoned
Normally, courts of appeal do not have _____. - ANSWERSoriginal 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. - ANSWERScannibalized
Annually, or more often, inventory, to determine beginning inventory, should be ______. - ANSWERSc.
physically counted
The quick ratio analysis of current assets is ______ the current ratio. - ANSWERSmore rigorous than.
is a measure of how well a company can meet its short-term financial liabilities. - ANSWERSquick 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. - ANSWERScurrent ratio
, The main difference between the current ratio and the quick ratio - ANSWERSQuick 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 ______. - ANSWERSd. 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. - ANSWERSThe 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. - ANSWERSAdequate 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 reader of the financial statements would not be misled. -
ANSWERSThe materiality principle
a formal charge or accusation of a serious crime. - ANSWERSindictment
a judicial order that restrains a person from beginning or continuing an action threatening or invading
the legal right of another, or that compels a person to carry out a certain act, e.g., to make restitution to
an injured party. - ANSWERSinjunction
Money invested in the facility, also known as the facility's net worth, is normally referred to as _____. -
ANSWERScapital
Act that generally establishes employer responsibility without regard to fault or negligence for
employees' illness or injuries that arise out of performance of the job are known as ____. -
ANSWERSWorker's Compensation Act.
A revision of an accounting forecast or assumption about the facility's expected or experienced
performance is a/an ______. - ANSWERSchange in accounting estimate.
