NAB Study Guide Questions & Answers
1.Education and training programs.
Answer To obtain more accurate cost estimates and more control over
costs (participatory budget making process - others are more likely to
consider the budget legitimate).
2.A change in which one of the following is not likely to be the cause of
a budget variance?
Answer The personal needs allowance.
3."Assets are always equal to the sum of liabilities plus owners' equity" is
the basic concept in the organization of the
Answer Balance Sheet.
4.The financial success or failure of a nursing facility is usually measured
by its
Answer Return on Equity (net income - i.e., revenues in excess of
expenses) and divides it by owners' equity).
5.If a facility has a current ratio greater than 1, which of the following state-
ments is most likely to be true?
Answer It will be able to pay its bills on time (current ratio greater than
1 means that the organization's current assets exceed its current
,liabilities, and this indicates a good ability to pay short-term liabilities as
they come in).
6.A check should generally be issued only when which one of the
following is available and properly signed?
Answer Purchase Order.
7.The importance of matching revenue with the expenses incurred in gener-
ating those revenues is the reason for recording which one of the
following?-
Answer Depreciation (the purpose of recognizing depreciation is to satisf
the Matching Principle (GAAP) stated in this question).
8.Using the straight-line method, what would be the annual depreciation
expense for a piece of equipment having a cost of $6,000.00, a
manufacturer's warranty for 2 years, and an estimated useful life of 6 years?
Answer $1,000.
9.Which of the following is a current asset?
Answer Accounts Receivables.
10.Under the accrual basis of accounting, revenues are recorded when
and expenses are recorded when .
Answer Revenues are earned - expenses are incurred.
, 11.A generally accepted accounting principle (GAAP) would be violated if a
company
Answer Used in its balance sheet an optimistic estimate of the current
market value of its building (the use of current market value rather than
historical costs would not be consistent with the Objectivity GAAP, and
the use of an optimistic rather than conservative estimate would violate
the Conservatism GAAP).
12.Last year's food costs 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 patient day (PPD)?
Answer $4.73
13.The Medicare benefit period ends when a beneficiary
Answer Has had 60 straight days with neither any hospital days nor
SNF days
14.Medicare Part A coverage of skilled nursing facility (SNF) care entails
out-of-pocket payment by the patient of a daily amount for which days of SNF
care in a benefit period?
Answer 21st through 100th
15.Which of the following statements is NOT true regarding the Medicare
Prospective Payment System for Skilled Nursing Facilities?
1.Education and training programs.
Answer To obtain more accurate cost estimates and more control over
costs (participatory budget making process - others are more likely to
consider the budget legitimate).
2.A change in which one of the following is not likely to be the cause of
a budget variance?
Answer The personal needs allowance.
3."Assets are always equal to the sum of liabilities plus owners' equity" is
the basic concept in the organization of the
Answer Balance Sheet.
4.The financial success or failure of a nursing facility is usually measured
by its
Answer Return on Equity (net income - i.e., revenues in excess of
expenses) and divides it by owners' equity).
5.If a facility has a current ratio greater than 1, which of the following state-
ments is most likely to be true?
Answer It will be able to pay its bills on time (current ratio greater than
1 means that the organization's current assets exceed its current
,liabilities, and this indicates a good ability to pay short-term liabilities as
they come in).
6.A check should generally be issued only when which one of the
following is available and properly signed?
Answer Purchase Order.
7.The importance of matching revenue with the expenses incurred in gener-
ating those revenues is the reason for recording which one of the
following?-
Answer Depreciation (the purpose of recognizing depreciation is to satisf
the Matching Principle (GAAP) stated in this question).
8.Using the straight-line method, what would be the annual depreciation
expense for a piece of equipment having a cost of $6,000.00, a
manufacturer's warranty for 2 years, and an estimated useful life of 6 years?
Answer $1,000.
9.Which of the following is a current asset?
Answer Accounts Receivables.
10.Under the accrual basis of accounting, revenues are recorded when
and expenses are recorded when .
Answer Revenues are earned - expenses are incurred.
, 11.A generally accepted accounting principle (GAAP) would be violated if a
company
Answer Used in its balance sheet an optimistic estimate of the current
market value of its building (the use of current market value rather than
historical costs would not be consistent with the Objectivity GAAP, and
the use of an optimistic rather than conservative estimate would violate
the Conservatism GAAP).
12.Last year's food costs 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 patient day (PPD)?
Answer $4.73
13.The Medicare benefit period ends when a beneficiary
Answer Has had 60 straight days with neither any hospital days nor
SNF days
14.Medicare Part A coverage of skilled nursing facility (SNF) care entails
out-of-pocket payment by the patient of a daily amount for which days of SNF
care in a benefit period?
Answer 21st through 100th
15.Which of the following statements is NOT true regarding the Medicare
Prospective Payment System for Skilled Nursing Facilities?
