NAB Study Guide Questions and Answers (2023) (Verified Answers by Expert)

NAB Study Guide Questions and Answers (2023) (Verified Answers by Expert) 1. Education and training programs >>>> 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 >>>> 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>>>> Balance Sheet. 4. The financial success or failure of a nursing facility is usually measured by its>>>> 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 statements is most likely to be true>>>> 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 >>>> 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? - : Depreciation (the purpose of recognizing depreciation is to satisfy the Matching Principle (GAAP) stated in this question). 8. Using the straight -line method, what would be the annual depreciation ex- pense 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 >>>> $1,000. 9. Which of the following is a current asset >>>> Accounts Receivables. 10. Under the accrual basis of accounting, revenues are recorded when and expenses are recorded when >>>> Revenues are earned - expenses are incurred. 11. A generally accepted accounting principle (GAAP) would be violated if a company >>>> 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).