NAB Exam Study Guide Latest Update 2026 | Pass Exam
Prep
1. Describe the purpose of a cash budget in the context of healthcare
management.
A cash budget is a tool for evaluating employee performance.
A cash budget outlines the long-term investments in healthcare
facilities.
A cash budget is used to determine the pricing of healthcare services.
A cash budget is used to project and manage the cash inflows and
outflows to ensure that the healthcare facility can meet its financial
obligations.
2. Describe the circumstances under which COBRA requires employers to offer
continuation of health insurance coverage.
COBRA mandates that all employees must be offered health insurance
regardless of employment status.
COBRA only applies to employees who voluntarily resign from their
positions.
COBRA allows employers to terminate health insurance coverage
without notice.
COBRA requires employers to offer continuation of health insurance
coverage when an employee experiences a qualifying event, such
as job loss or reduction in hours.
3. A patient is prescribed eye drops marked with 'OU'. How should the nurse
proceed with the administration?
Administer the drops in the left eye only.
, Administer the drops orally.
Administer the drops in the right eye only.
Administer the drops in both eyes.
4. If a medication is to be administered "IM," where in the body will the
medication be given?
in the muscle
in the vein
in the subcutaneous tissue
by mouth
5. Describe the importance of preparing a trial balance after posting
transactions to the ledger.
Preparing a trial balance is necessary for tax reporting purposes.
Preparing a trial balance helps ensure that the total debits equal
total credits, verifying the accuracy of the ledger.
Preparing a trial balance allows for the closing of accounts.
Preparing a trial balance is only needed at the end of the fiscal year.
6. Name the two entities responsible for setting regulations on emergency
electrical power requirements in healthcare facilities.
Centers for Medicare & Medicaid Services (CMS) and the Food and
Drug Administration (FDA)
The Joint Commission and the National Fire Protection Association
(NFPA)
World Health Organization (WHO) and the Centers for Disease
Control and Prevention (CDC)
, Occupational Safety and Health Administration (OSHA) and the
American Nurses Association (ANA)
7. What is the minimum duration for which medical records must be kept
according to healthcare regulations?
Five years
Three years
Ten years
Indefinitely
8. A person who experiences positive feelings about his or her job is
experiencing:
job involvement.
organisational commitment.
job stability.
job satisfaction.
9. The maximum number of hours allowed between serving the evening meal
and breakfast the following day is:
14 hrs
15 hours
12 hrs
13 hrs
10. The type of authority, where the administrator exercises direct supervision
over the employees, is most often used. It is called
, Assertive Authority
Functional Authority
Line Authority
Centralized Authority
11. Even though there is no clear-cut time at which gerontologists all agree one
joins the oldest old, with increases in longevity, the term is most commonly
referring to people age ___ and over
90
80
85
75
12. The minimum amount of square footage in a private room is ____________.
100 square feet
150 square feet per person
120 square feet per person
80 square feet per person
13. What is the term used to describe authority that involves direct oversight of
subordinates?
Functional authority
Staff authority
Advisory authority
Line authority
Prep
1. Describe the purpose of a cash budget in the context of healthcare
management.
A cash budget is a tool for evaluating employee performance.
A cash budget outlines the long-term investments in healthcare
facilities.
A cash budget is used to determine the pricing of healthcare services.
A cash budget is used to project and manage the cash inflows and
outflows to ensure that the healthcare facility can meet its financial
obligations.
2. Describe the circumstances under which COBRA requires employers to offer
continuation of health insurance coverage.
COBRA mandates that all employees must be offered health insurance
regardless of employment status.
COBRA only applies to employees who voluntarily resign from their
positions.
COBRA allows employers to terminate health insurance coverage
without notice.
COBRA requires employers to offer continuation of health insurance
coverage when an employee experiences a qualifying event, such
as job loss or reduction in hours.
3. A patient is prescribed eye drops marked with 'OU'. How should the nurse
proceed with the administration?
Administer the drops in the left eye only.
, Administer the drops orally.
Administer the drops in the right eye only.
Administer the drops in both eyes.
4. If a medication is to be administered "IM," where in the body will the
medication be given?
in the muscle
in the vein
in the subcutaneous tissue
by mouth
5. Describe the importance of preparing a trial balance after posting
transactions to the ledger.
Preparing a trial balance is necessary for tax reporting purposes.
Preparing a trial balance helps ensure that the total debits equal
total credits, verifying the accuracy of the ledger.
Preparing a trial balance allows for the closing of accounts.
Preparing a trial balance is only needed at the end of the fiscal year.
6. Name the two entities responsible for setting regulations on emergency
electrical power requirements in healthcare facilities.
Centers for Medicare & Medicaid Services (CMS) and the Food and
Drug Administration (FDA)
The Joint Commission and the National Fire Protection Association
(NFPA)
World Health Organization (WHO) and the Centers for Disease
Control and Prevention (CDC)
, Occupational Safety and Health Administration (OSHA) and the
American Nurses Association (ANA)
7. What is the minimum duration for which medical records must be kept
according to healthcare regulations?
Five years
Three years
Ten years
Indefinitely
8. A person who experiences positive feelings about his or her job is
experiencing:
job involvement.
organisational commitment.
job stability.
job satisfaction.
9. The maximum number of hours allowed between serving the evening meal
and breakfast the following day is:
14 hrs
15 hours
12 hrs
13 hrs
10. The type of authority, where the administrator exercises direct supervision
over the employees, is most often used. It is called
, Assertive Authority
Functional Authority
Line Authority
Centralized Authority
11. Even though there is no clear-cut time at which gerontologists all agree one
joins the oldest old, with increases in longevity, the term is most commonly
referring to people age ___ and over
90
80
85
75
12. The minimum amount of square footage in a private room is ____________.
100 square feet
150 square feet per person
120 square feet per person
80 square feet per person
13. What is the term used to describe authority that involves direct oversight of
subordinates?
Functional authority
Staff authority
Advisory authority
Line authority
