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NAB: Finance (19
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questions)Complete solutions
N
provided to Approved Questions
JP
100% CORRECT!!
Why should the administrator get the department heads involved in the budget-making
process? - ANSWER To obtain more accurate cost estimates and more control over
costs
, A change in this is not likely to be the cause of a budget variance? - ANSWER the
personal needs allowance
financial statement *s*ummarizing assets, liabilities and retained earnings or net worth.
Reflect solvency and financial position - ANSWER balance *s*heet
The financial success or failure of a nursing home is usually measured by its? -
ANSWER return on equity
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If a facility has a current ratio greater than 1, what does that mean? - ANSWER It
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will be able to pay its bills on time (working capital), solvency
A check should only be issued only when one of the following is available and properly
TU
signed? - ANSWER purchase order
The importance of matching revenue with the expenses incurred in generating those
revenues in the reason for recording which of the following? - ANSWER The
purpose for recognizing depreciation is to satisfy the *Matching Principle*
IS
Using the *straight-line method*, what would be the *annual depreciation expense* for a
piece of equipment having a cost of $6,000 a manufacturer's warranty for 2 years and
M
an estimated useful life of 6 years? - ANSWER $1,000
Formula: cost/useful life years in the asset's estimated useful life. $6,000/6 = $1,000
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Which of the following is a *current* asset? - ANSWER Accounts receivable, *cash*,
supplies inventories and pre paid expenses
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Under the accrual basis of accounting, revenues are recorded when________________
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and expenses are recorded when ____________. - ANSWER revenues are
*earned*----expenses are *incurred* Recorded in the *time period* in which they were
JP
realized
A generally accepted accounting principle (GAAP) would be violated if a company did
this? - ANSWER used in its *balance sheet* and optimistic estimate of the current
market value of its building
Last year's food cost for a 100-bed facility were $146,820. The facility had an average
occupancy rate of 85% that year. What was this facility's food cost per PPD? -
ANSWER $4.73
VI
TU
IS
M
O
NAB: Finance (19
A
questions)Complete solutions
N
provided to Approved Questions
JP
100% CORRECT!!
Why should the administrator get the department heads involved in the budget-making
process? - ANSWER To obtain more accurate cost estimates and more control over
costs
, A change in this is not likely to be the cause of a budget variance? - ANSWER the
personal needs allowance
financial statement *s*ummarizing assets, liabilities and retained earnings or net worth.
Reflect solvency and financial position - ANSWER balance *s*heet
The financial success or failure of a nursing home is usually measured by its? -
ANSWER return on equity
A
If a facility has a current ratio greater than 1, what does that mean? - ANSWER It
VI
will be able to pay its bills on time (working capital), solvency
A check should only be issued only when one of the following is available and properly
TU
signed? - ANSWER purchase order
The importance of matching revenue with the expenses incurred in generating those
revenues in the reason for recording which of the following? - ANSWER The
purpose for recognizing depreciation is to satisfy the *Matching Principle*
IS
Using the *straight-line method*, what would be the *annual depreciation expense* for a
piece of equipment having a cost of $6,000 a manufacturer's warranty for 2 years and
M
an estimated useful life of 6 years? - ANSWER $1,000
Formula: cost/useful life years in the asset's estimated useful life. $6,000/6 = $1,000
O
Which of the following is a *current* asset? - ANSWER Accounts receivable, *cash*,
supplies inventories and pre paid expenses
A
Under the accrual basis of accounting, revenues are recorded when________________
N
and expenses are recorded when ____________. - ANSWER revenues are
*earned*----expenses are *incurred* Recorded in the *time period* in which they were
JP
realized
A generally accepted accounting principle (GAAP) would be violated if a company did
this? - ANSWER used in its *balance sheet* and optimistic estimate of the current
market value of its building
Last year's food cost for a 100-bed facility were $146,820. The facility had an average
occupancy rate of 85% that year. What was this facility's food cost per PPD? -
ANSWER $4.73
