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NAB FINANCIAL MANAGEMENT SECTION
PRACTICE EXAM QUESTIONS WITH 100% SOLVED
ANSWERS/NEWEST UPDATE Questions and Correct
Answers/ Latest Update / Already Graded
How long must employee records be retained
Ans: 3 years
How much is overtime pay?
Ans: 1.5 times the normal base rate
What is meant by the 8-80 system?
Ans: The employee is paid overtime for any hours worked after more than 8
hours in a day and more than 80 hours in a 14 day period.
What is meant by an exempt employee?
Ans: These employees are not eligible for overtime. These are usually
management employees.
What is meant by an Non exempt employees?
Ans: These are employees that qualify for overtime pay.
What does the acronym HCBS stand for?
Ans: Home and community based services.
What is an operating budget?
© 2025/ 2026 | ® All rights reserved
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Ans: It is the budget that the administrator will find census goals by payer
source, revenue projections as well as anticipated expenditures. Revenue will be
broken down into service areas such as Medicare, Medicaid, private pay.....etc.
Why is cost center used in a budget.
Ans: It is used to separate various expenditures, including wages, medical
supplies, raw food, etc.
Why would a company use a capital budget?
Ans: It is used for large expenditures such s real estate, buildings and
equipment.
How much, according to CMS, is the minimum cost for a capital expenditure?
Ans: $5000.00
What is a cash budget used for?
Ans: It is a forecast of cash receipts and disbursements for each month during
the budget year.
Only one person should handle cash within an organization?
Ans: False. (There should be checks and balances)
How do you calculate current ratio?
Ans: Total Current Assets/Total Current Liabilities
What is the current ratio if a company's balance sheets shows it has $1,000,000 in
assets and $800,000 in liabilites?
© 2025/ 2026 | ® All rights reserved
NAB FINANCIAL MANAGEMENT SECTION
PRACTICE EXAM QUESTIONS WITH 100% SOLVED
ANSWERS/NEWEST UPDATE Questions and Correct
Answers/ Latest Update / Already Graded
How long must employee records be retained
Ans: 3 years
How much is overtime pay?
Ans: 1.5 times the normal base rate
What is meant by the 8-80 system?
Ans: The employee is paid overtime for any hours worked after more than 8
hours in a day and more than 80 hours in a 14 day period.
What is meant by an exempt employee?
Ans: These employees are not eligible for overtime. These are usually
management employees.
What is meant by an Non exempt employees?
Ans: These are employees that qualify for overtime pay.
What does the acronym HCBS stand for?
Ans: Home and community based services.
What is an operating budget?
© 2025/ 2026 | ® All rights reserved
, 2 | Page
Ans: It is the budget that the administrator will find census goals by payer
source, revenue projections as well as anticipated expenditures. Revenue will be
broken down into service areas such as Medicare, Medicaid, private pay.....etc.
Why is cost center used in a budget.
Ans: It is used to separate various expenditures, including wages, medical
supplies, raw food, etc.
Why would a company use a capital budget?
Ans: It is used for large expenditures such s real estate, buildings and
equipment.
How much, according to CMS, is the minimum cost for a capital expenditure?
Ans: $5000.00
What is a cash budget used for?
Ans: It is a forecast of cash receipts and disbursements for each month during
the budget year.
Only one person should handle cash within an organization?
Ans: False. (There should be checks and balances)
How do you calculate current ratio?
Ans: Total Current Assets/Total Current Liabilities
What is the current ratio if a company's balance sheets shows it has $1,000,000 in
assets and $800,000 in liabilites?
© 2025/ 2026 | ® All rights reserved
