NAB Financial Test Exam Questions And Answers Verified 100% Correct| Updated 2026/2027|

NAB Financial Test Exam Questions And Answers Verified 100% Correct| Updated 2026/2027| Items such as depreciation and prepaid insurance in the ____________ would be difficult to recognize - ANSWER -cash accounting method If you directed your accountant to record revenue when they are earned and expenses when they are incurred regardless of the time the cash transaction take place; you have decided to use which system of accounting ? - ANSWER -accrual method A summary of the facilities financial well being within a time period is normally referred to as ? - ANSWER -the financial statements If you asked your bookkeeper for a list containing every account in facility, the bookkeeper would hand the administrator a ? - ANSWER -chart of account Things owned by the business are normally referred to as ? - ANSWER -assets Things owed by the business are normally referred to as - ANSWER -liabilities Money invested in facility, also known as the facility's net worth is normally referred to as ? - ANSWER -capital If you asked your accountant for the journal, you want to look at the? - ANSWER -original entries Making a debit and credit entry for each transaction is known as? - ANSWER double entry Under double entry bookkeeping, when a bill is sent to Ms. Jones for $3000 past month's care, the bookkeeper would normally record $3000 in the debit column as an increase in assets and - ANSWER -record $3000 on the credit side as an increase in revenue When you ask the accountant for a summary of all debts and credits contained in the journal the time period, the accountant should hand you the - ANSWER general ledger The income statement compares expenses to? - ANSWER -revenue At the end of time period, total expenses are subtracted from total revenue to compute ? - ANSWER -net income, profit, or loss The accountant, upon successfully bringing the expenses and revenue accounts to zero, has successfully. - ANSWER -closed the books If you asked your accountant for a statement showing the ending balances of the revenue and expense accounts, the accountant should hand you the ? - ANSWER income statement A financial statement in which the assets must equal liability and capital accounts is known as the ? - ANSWER -balance sheet Any possession of the facility which will or can be turned into cash within 12 months is called a - ANSWER -current asset Depreciation is an expense associated with the use of - ANSWER -an asset Funds that have been invested by the owners or others, and retained earning earnings that have been put back into the facility are usually included when calculating the - ANSWER -net worth If the you ask the accountant for an statement analyzing the financial position of the facility at the beginning of the fiscal year, the best statement to hand you would - ANSWER -the balance sheet When the amount of current assets remaining after current liabilities have been subtracted is calculated, the administrator has idea of the ? - ANSWER -working capital A facility has current assets of $403,898 and current liabilities of $367,000. Its current ratio is ? - ANSWER -403,898/367,00= 1.1 A facility with long term debt of $4,000,000 and total equity of $3,000,000 has a debt to equity ratio of ? - ANSWER -4,000,000/3,000,00=1.33 A useful form that summarizes the facility's occupancy listing daily admissions, discharges, and transfers is known as ? - ANSWER -daily census Perhaps the only way to maintain an accurate count of supplies consumed is to use ? - ANSWER -a perpetual inventory systems To safeguard the finances of a facility, procedures should be arranged to establish a system so that each employee can review each other's financial activities ? - ANSWER -checks and balances Congress purpose for passing accelerated depreciation was to - ANSWER encourage new building and equipment The salary of the director and nursing director are examples of - ANSWER -fixed cost Medical supplies, food supplies, postage for billing residents are example of ? - ANSWER -variable cost Because income and expenses vary from time period to time period, it is desirable to project a - ANSWER -balanced budget