NAB STUDY GUIDE EXAM QUESTIONS
AND ANSWERS
Educational and training programs. - ANSWER To acquire more accurate cost
predictions and expense control (participatory budgeting - others are more likely
to regard the budget as credible).
Which of the following changes is unlikely to generate a budget variance? -
ANSWER: Personal needs allowance.
"Assets are always equal to the sum of liabilities plus owners' equity" is the
fundamental principle underlying the organization of the: ANSWER Balance
Sheet.
A nursing facility's financial success or failure is typically measured by its
Return on Equity (net income (i.e., revenues above expenses) divided by
owners' equity).
Which of the following statements is most likely true if a facility's current ratio
exceeds one? - ANSWER It will be able to pay its payments on time (a current
ratio larger than one implies that the organization's current assets surpass its
current obligations, indicating a strong ability to pay short-term responsibilities
as they arise).
A check should normally be provided only when which of the following is
present and properly signed? - ANSWER Purchase order.
The significance of matching revenue with expenses incurred in earning such
revenues is the rationale for recording which of the following? - ANSWER
Depreciation (the goal of recognizing depreciation is to meet the Matching
Principle (GAAP) indicated in this question).
,Using the straight-line method, what is the annual depreciation expense for a
$6,000.00 piece of equipment with a two-year manufacturer's guarantee and a
six-year estimated useful life? - ANSWER: $1,000.
Which of the following is a current asset? - ANSWER Accounts Receivable.
According to the accrual foundation of accounting, revenues are recognized
when _______ and expenses when ______________. - ANSWER: Revenues
are generated; costs are incurred.
A company would violate a generally accepted accounting principle (GAAP) if
it used an optimistic estimate of the current market value of its building in its
balance sheet.
Last year, the food expenditures for a 100-bed facility were $146,820. The
institution had an average occupancy rate of 85% that year. How much did this
facility's food cost per patient day (PPD)? - ANSWER: $4.73
The Medicare benefit period ends when a beneficiary has had 60 consecutive
days without any hospital or SNF days.
Which days of skilled nursing facility (SNF) care in a benefit period require the
patient to pay a daily out-of-pocket cost under Medicare Part A? - ANSWER
21st–100th
Which of the following claims is NOT correct about the Medicare Prospective
Payment System for Skilled Nursing Facilities? - ANSWER There are separate
prospective rates for capital-related expenditures (Medicare does not reimburse
, SNFs separately for capital-related costs; the facility's RUG rate is supposed to
cover all types of costs).
A RUG is an answer category in a resident categorization system.
To complete the Medicare cost report, you must complete all but one of the
following requirements. - ANSWER: Accounts receivable are aging.
The word ANSWER Abuse refers to the accidental incorrect or excessive use of
a health insurance program's benefits.
The process by which an individual gets eligible for Medicaid by accruing
medical bills until personal resources fall below a certain level is called "spend
down."
Which of the following claims about budgetary procedures is correct? -
ANSWER A cash budget can alert you to months when cash outlays fall short
of cash receipts.
An example of a variable cost is: - nursing supplies.
If the facility's occupancy rises from 94% to 98%, the fixed cost per resident
will fall marginally. If the occupancy rate rises somewhat, fixed expenses
remain constant (by definition), while the number of inhabitants grows,
resulting in a lower fixed cost per person. Another way to describe it is that the
fixed costs are distributed across a larger number of inhabitants.
AND ANSWERS
Educational and training programs. - ANSWER To acquire more accurate cost
predictions and expense control (participatory budgeting - others are more likely
to regard the budget as credible).
Which of the following changes is unlikely to generate a budget variance? -
ANSWER: Personal needs allowance.
"Assets are always equal to the sum of liabilities plus owners' equity" is the
fundamental principle underlying the organization of the: ANSWER Balance
Sheet.
A nursing facility's financial success or failure is typically measured by its
Return on Equity (net income (i.e., revenues above expenses) divided by
owners' equity).
Which of the following statements is most likely true if a facility's current ratio
exceeds one? - ANSWER It will be able to pay its payments on time (a current
ratio larger than one implies that the organization's current assets surpass its
current obligations, indicating a strong ability to pay short-term responsibilities
as they arise).
A check should normally be provided only when which of the following is
present and properly signed? - ANSWER Purchase order.
The significance of matching revenue with expenses incurred in earning such
revenues is the rationale for recording which of the following? - ANSWER
Depreciation (the goal of recognizing depreciation is to meet the Matching
Principle (GAAP) indicated in this question).
,Using the straight-line method, what is the annual depreciation expense for a
$6,000.00 piece of equipment with a two-year manufacturer's guarantee and a
six-year estimated useful life? - ANSWER: $1,000.
Which of the following is a current asset? - ANSWER Accounts Receivable.
According to the accrual foundation of accounting, revenues are recognized
when _______ and expenses when ______________. - ANSWER: Revenues
are generated; costs are incurred.
A company would violate a generally accepted accounting principle (GAAP) if
it used an optimistic estimate of the current market value of its building in its
balance sheet.
Last year, the food expenditures for a 100-bed facility were $146,820. The
institution had an average occupancy rate of 85% that year. How much did this
facility's food cost per patient day (PPD)? - ANSWER: $4.73
The Medicare benefit period ends when a beneficiary has had 60 consecutive
days without any hospital or SNF days.
Which days of skilled nursing facility (SNF) care in a benefit period require the
patient to pay a daily out-of-pocket cost under Medicare Part A? - ANSWER
21st–100th
Which of the following claims is NOT correct about the Medicare Prospective
Payment System for Skilled Nursing Facilities? - ANSWER There are separate
prospective rates for capital-related expenditures (Medicare does not reimburse
, SNFs separately for capital-related costs; the facility's RUG rate is supposed to
cover all types of costs).
A RUG is an answer category in a resident categorization system.
To complete the Medicare cost report, you must complete all but one of the
following requirements. - ANSWER: Accounts receivable are aging.
The word ANSWER Abuse refers to the accidental incorrect or excessive use of
a health insurance program's benefits.
The process by which an individual gets eligible for Medicaid by accruing
medical bills until personal resources fall below a certain level is called "spend
down."
Which of the following claims about budgetary procedures is correct? -
ANSWER A cash budget can alert you to months when cash outlays fall short
of cash receipts.
An example of a variable cost is: - nursing supplies.
If the facility's occupancy rises from 94% to 98%, the fixed cost per resident
will fall marginally. If the occupancy rate rises somewhat, fixed expenses
remain constant (by definition), while the number of inhabitants grows,
resulting in a lower fixed cost per person. Another way to describe it is that the
fixed costs are distributed across a larger number of inhabitants.
