NAB FINANCIAL MANAGEMENT
SECTION EXAM 2025 QUESTIONS AND
ANSWERS
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? - 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.
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, 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? - ANS 1.25
How do you calculate equity Ratio? - ANS Total stockholder's equity/Total Assets
What is the equity ratio if a nursing home owner whose assets equal $500,000 of which
$2,700,000 was acquired through stockholder's investments. - ANS 54%
How many days does Medicare cover under part A benefits. - ANS 100 days
Under part A benefits, how many times a week must therapy be administered? - ANS 5 days
2|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
SECTION EXAM 2025 QUESTIONS AND
ANSWERS
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? - 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.
1|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
, 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? - ANS 1.25
How do you calculate equity Ratio? - ANS Total stockholder's equity/Total Assets
What is the equity ratio if a nursing home owner whose assets equal $500,000 of which
$2,700,000 was acquired through stockholder's investments. - ANS 54%
How many days does Medicare cover under part A benefits. - ANS 100 days
Under part A benefits, how many times a week must therapy be administered? - ANS 5 days
2|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
