NAB EXAM Questions and Answers |
2026 Ultimate Exam Script | A+
Verified
• A change in which one of the following is not likely to be the cause of a budget
variance? -✓✓The personal needs allowance.
• "Assets are always equal to the sum of liabilities plus owners' equity" is the basic
concept in the organization of the: -✓✓Balance Sheet.
• The financial success or failure of a nursing facility is usually measured by its: -
✓✓Return on Equity (net income - i.e., revenues in excess of expenses) and
divides it by owners' equity).
• If a facility has a current ratio greater than 1, which of the following statements is
most likely to be true? -✓✓It will be able to pay its bills on time (current ratio
greater than 1 means that the organization's current assets exceed its current
liabilities, and this indicates a good ability to pay short-term liabilities as they
come in).
• A check should generally be issued only when which one of the following is
available and properly signed? -✓✓Purchase Order.
• The importance of matching revenue with the expenses incurred in generating
those revenues is the reason for recording which one of the following? -
✓✓Depreciation (the purpose of recognizing depreciation is to satisfy the
Matching Principle (GAAP) stated in this question).
,• Using the straight-line method, what would be the annual depreciation expense
for a piece of equipment having a cost of $6,000.00, a manufacturer's warranty for
2 years, and an estimated useful life of 6 years? -✓✓$1,000.
• Which of the following is a current asset? -✓✓Accounts Receivables.
• Under the accrual basis of accounting, revenues are recorded when _______ and
expenses are recorded when ______________. -✓✓Revenues are earned -
expenses are incurred.
• A generally accepted accounting principle (GAAP) would be violated if a
company: -✓✓Used in its balance sheet an optimistic estimate of the current
market value of its building (the use of current market value rather than historical
costs would not be consistent with the Objectivity GAAP, and the use of an
optimistic rather than conservative estimate would violate the Conservatism
GAAP).
• Last year's food costs for a 100-bed facility were $146,820. The facility had an
average occupancy rate of 85% that year. What was this facility's food cost per
patient day (PPD)? -✓✓$4.73
• The Medicare benefit period ends when a beneficiary -✓✓Has had 60 straight
days with neither any hospital days nor SNF days
• Medicare Part A coverage of skilled nursing facility (SNF) care entails out-of-
pocket payment by the patient of a daily amount for which days of SNF care in a
benefit period? -✓✓21st through 100th
, • Which of the following statements is NOT true regarding the Medicare
Prospective Payment System for Skilled Nursing Facilities? -✓✓There are
separate prospective rates for capital-related costs (Medicare does not make
separate reimbursement to SNFs for capital-related costs. The RUG rate that the
facility receives is expected to cover all types of costs).
• A RUG is a: -✓✓Category in a resident classification system.
• Completion of the Medicare cost report requires carrying out all except which
one of the following tasks? -✓✓Aging of accounts receivable.
• The term for unintentional improper or excessive use of benefits of a health
insurance program is: -✓✓Abuse.
• The process by which an individual becomes eligible for Medicaid by incurring
medical expenses until personal resources fall below a specified ceiling is called: -
✓✓Spend Down
• Which of the following statements regarding budgeting procedure is correct? -
✓✓A cash budget may provide advance warning of months when cash outlays fall
short of cash receipts.
• An example of a variable cost is: -✓✓Nursing supplies.
• If the facility's occupancy increases from 94% to 98%, the fixed cost per resident
-✓✓Decreases slightly (Fixed cost per resident is calculated by dividing total fixed
costs by number of residents (currently-occupied beds). If the occupancy rate
increases slightly, fixed costs do not change (by definition), and number of
2026 Ultimate Exam Script | A+
Verified
• A change in which one of the following is not likely to be the cause of a budget
variance? -✓✓The personal needs allowance.
• "Assets are always equal to the sum of liabilities plus owners' equity" is the basic
concept in the organization of the: -✓✓Balance Sheet.
• The financial success or failure of a nursing facility is usually measured by its: -
✓✓Return on Equity (net income - i.e., revenues in excess of expenses) and
divides it by owners' equity).
• If a facility has a current ratio greater than 1, which of the following statements is
most likely to be true? -✓✓It will be able to pay its bills on time (current ratio
greater than 1 means that the organization's current assets exceed its current
liabilities, and this indicates a good ability to pay short-term liabilities as they
come in).
• A check should generally be issued only when which one of the following is
available and properly signed? -✓✓Purchase Order.
• The importance of matching revenue with the expenses incurred in generating
those revenues is the reason for recording which one of the following? -
✓✓Depreciation (the purpose of recognizing depreciation is to satisfy the
Matching Principle (GAAP) stated in this question).
,• Using the straight-line method, what would be the annual depreciation expense
for a piece of equipment having a cost of $6,000.00, a manufacturer's warranty for
2 years, and an estimated useful life of 6 years? -✓✓$1,000.
• Which of the following is a current asset? -✓✓Accounts Receivables.
• Under the accrual basis of accounting, revenues are recorded when _______ and
expenses are recorded when ______________. -✓✓Revenues are earned -
expenses are incurred.
• A generally accepted accounting principle (GAAP) would be violated if a
company: -✓✓Used in its balance sheet an optimistic estimate of the current
market value of its building (the use of current market value rather than historical
costs would not be consistent with the Objectivity GAAP, and the use of an
optimistic rather than conservative estimate would violate the Conservatism
GAAP).
• Last year's food costs for a 100-bed facility were $146,820. The facility had an
average occupancy rate of 85% that year. What was this facility's food cost per
patient day (PPD)? -✓✓$4.73
• The Medicare benefit period ends when a beneficiary -✓✓Has had 60 straight
days with neither any hospital days nor SNF days
• Medicare Part A coverage of skilled nursing facility (SNF) care entails out-of-
pocket payment by the patient of a daily amount for which days of SNF care in a
benefit period? -✓✓21st through 100th
, • Which of the following statements is NOT true regarding the Medicare
Prospective Payment System for Skilled Nursing Facilities? -✓✓There are
separate prospective rates for capital-related costs (Medicare does not make
separate reimbursement to SNFs for capital-related costs. The RUG rate that the
facility receives is expected to cover all types of costs).
• A RUG is a: -✓✓Category in a resident classification system.
• Completion of the Medicare cost report requires carrying out all except which
one of the following tasks? -✓✓Aging of accounts receivable.
• The term for unintentional improper or excessive use of benefits of a health
insurance program is: -✓✓Abuse.
• The process by which an individual becomes eligible for Medicaid by incurring
medical expenses until personal resources fall below a specified ceiling is called: -
✓✓Spend Down
• Which of the following statements regarding budgeting procedure is correct? -
✓✓A cash budget may provide advance warning of months when cash outlays fall
short of cash receipts.
• An example of a variable cost is: -✓✓Nursing supplies.
• If the facility's occupancy increases from 94% to 98%, the fixed cost per resident
-✓✓Decreases slightly (Fixed cost per resident is calculated by dividing total fixed
costs by number of residents (currently-occupied beds). If the occupancy rate
increases slightly, fixed costs do not change (by definition), and number of
