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
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
