NAB Finance Study Test Questions with Correct Answers

NAB Finance Study Test Questions with Correct Answers When most of the depreciation expense is taken in the first years, it is called: - Answer-accelerated depreciation A cost with both a fixed and variable cost component is called: - Answer-semi-variable cost The ____ includes both a revenue and expense budget: - Answer-the operating budget Operating revenues are monies received for services directly related to: - Answer-resident/patient care The ______ summarizes all debits and credits. - Answer-general ledger Accountants prepare the financial statements when the ________. - Answer-the "books" balance If the trial balance shows that debits and credits in the journals do not balance out, that indicates there was an error in __________. - Answer-recording the transactions The summary of financial well being is called the __________. - Answer-balance sheet if the administrator wants to see the facility's net worth, he/she would look at the _________. - Answer-balance sheet balance sheets are not __________. - Answer-prepared by the bookkeeper if the administrator wants to know if the facility made money, he/she would look at the _______. - Answer-profit and loss statement & income statement assets are listed on the _____ side of the balance sheet - Answer-left side a thing that is owned by the facility that will or can be converted to cash within 12 months is called a _______. - Answer-current asset prepaid insurance is categorized as _______. - Answer-an asset if the administrator wants to know the amount of working capital on hand, he/she would look at the ______. - Answer-balance sheet an expense associate with the use of an asset is called ______. - Answer-depreciation an obligation of a facility to pay others is called a _____. - Answer-liability obligations that must be paid within 12 months are called ______. - Answer-current liabilities obligations that are not paid within 12 months are called _____. - Answer-non-current liabilities the amount on the balance sheet representing ownership would not include _____. - Answer-revenue capital would not include ______. - Answer-gross income to determine if revenues are sufficient to cover expenses, you would review the _____. - Answer-profit and loss statement operating revenue prior to deductions are called _____. - Answer-gross operating revenues A budget that projects purchase of assets of $500 or more and will be held for at least 1 year is called the __________________. 1. Revenue budget 2. Expense budget 3. Capital budget 4. Profit and loss statement - Answer-3. capital budget double entry booking system - Answer-the system of entering both a debit and a credit gross pay - Answer-multiplying hours worked by the hourly rate # hours worked x hourly rate($) net pay - Answer-subtracting deductions from gross pay the practice of performing an initial inventory and then monitoring supply levels monthly is called: - Answer-perpetual inventory system an annual physical inventory is called: - Answer-periodic inventory keeping inventory in vendor warehouses and getting needed supplies delivered just in time is called: - Answer-just in time inventory __________ assumes the supplies stored the longest will be used first, thereby raising the value of the remaining inventory. - Answer-first in - first out