NAB FINANCIAL EXAM SCRIPT 2026
COMPREHENSIVE QUESTIONS AND
SOLUTIONS GRADED A+
◉ The Generally Accepted Accounting Principles (GAAP) do not
normally require financial statements prepared for general
distribution to include _____. Answer: Chart of Accounts
◉ The income statement shows whether _____ were sufficient to
cover expenses. Answer: Revenues
◉ The accountant has listed the new building annex, the new central
air conditioning system and the supplies for the next 6 months as
capital expenses. The administrator should ____. Answer: look for a
new accountant
◉ At the end of a time period, total expenses are subtracted from
total revenues to compute the ____. Answer: Net income, or profit or
loss
◉ The accountant, upon successfully bringing the expense and
revenue accounts to zero, has successfully _____. Answer: closed the
books
,◉ When the administrator asks the chief financial officer (CEO) for a
statement showing the ending balance of the revenue and expense
accounts, the CFO should hand the _____ to the administrator.
Answer: income statement
◉ A Financial statement in which the assets must equal the liability
and capital accounts is known as the ____. Answer: balance sheet
◉ Any possession of the facility that will be or could be turned into
cash within 12 months is a ____. Answer: current asset
◉ because capital assets will not be liquidated any time soon, their
current market value is not directly relevant relates to the ongoing
concern concept and is known as ____. Answer: historic cost
◉ depreciation is an expense associated with the use of ____ Answer:
an asset
◉ Bills from suppliers of foodstuffs or office supplies or janitorial
services contractors are normally classified as among the _____.
Answer: current liabilities
◉ When an administrator notes that there are $600,000 in notes
payable on the financial reports, the administrator knows these
must be paid within _____. Answer: 1 year
, ◉ Funds that have been put into the facility by owners or others, and
retained earnings that have been put back into the facility are
usually included when calculating the _____. Answer: Net worth
◉ except for for-profit facilities paying taxes and the not for profit
facility not paying income taxes, there are _____ in accounting and
financial processes. Answer: no real differences
◉ not having to pay taxes gives not for profit facilities a slight _____.
Answer: a competitive edge
◉ The certified public accountant's end of year report for a 15 year
old 120 bed for profit facility with no debt shows an excess of
income over expenses of $95,000. The owners would likely be
Answer: very displeased with the facility performance
◉ When asked whether funds are readily available for a $75,000
purchase and the accountant responds that the net worth is well
over $800,000 and to go ahead with the purchase, the administrator
should _____. Answer: ask for a statement of working capital
◉ When the amount of current assets remaining after current
liabilities have been subtracted is calculated, the administrator has
an idea of the _____ available to be spent. Answer: working capital
COMPREHENSIVE QUESTIONS AND
SOLUTIONS GRADED A+
◉ The Generally Accepted Accounting Principles (GAAP) do not
normally require financial statements prepared for general
distribution to include _____. Answer: Chart of Accounts
◉ The income statement shows whether _____ were sufficient to
cover expenses. Answer: Revenues
◉ The accountant has listed the new building annex, the new central
air conditioning system and the supplies for the next 6 months as
capital expenses. The administrator should ____. Answer: look for a
new accountant
◉ At the end of a time period, total expenses are subtracted from
total revenues to compute the ____. Answer: Net income, or profit or
loss
◉ The accountant, upon successfully bringing the expense and
revenue accounts to zero, has successfully _____. Answer: closed the
books
,◉ When the administrator asks the chief financial officer (CEO) for a
statement showing the ending balance of the revenue and expense
accounts, the CFO should hand the _____ to the administrator.
Answer: income statement
◉ A Financial statement in which the assets must equal the liability
and capital accounts is known as the ____. Answer: balance sheet
◉ Any possession of the facility that will be or could be turned into
cash within 12 months is a ____. Answer: current asset
◉ because capital assets will not be liquidated any time soon, their
current market value is not directly relevant relates to the ongoing
concern concept and is known as ____. Answer: historic cost
◉ depreciation is an expense associated with the use of ____ Answer:
an asset
◉ Bills from suppliers of foodstuffs or office supplies or janitorial
services contractors are normally classified as among the _____.
Answer: current liabilities
◉ When an administrator notes that there are $600,000 in notes
payable on the financial reports, the administrator knows these
must be paid within _____. Answer: 1 year
, ◉ Funds that have been put into the facility by owners or others, and
retained earnings that have been put back into the facility are
usually included when calculating the _____. Answer: Net worth
◉ except for for-profit facilities paying taxes and the not for profit
facility not paying income taxes, there are _____ in accounting and
financial processes. Answer: no real differences
◉ not having to pay taxes gives not for profit facilities a slight _____.
Answer: a competitive edge
◉ The certified public accountant's end of year report for a 15 year
old 120 bed for profit facility with no debt shows an excess of
income over expenses of $95,000. The owners would likely be
Answer: very displeased with the facility performance
◉ When asked whether funds are readily available for a $75,000
purchase and the accountant responds that the net worth is well
over $800,000 and to go ahead with the purchase, the administrator
should _____. Answer: ask for a statement of working capital
◉ When the amount of current assets remaining after current
liabilities have been subtracted is calculated, the administrator has
an idea of the _____ available to be spent. Answer: working capital
