NAB Study Guide Questions
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1. Education and training programs. To obtain more accurate cost estimates
and more control over costs (participa-
tory budget making process - others
are more likely to consider the budget
legitimate).
2. A change in which one of the following is not The personal needs allowance.
likely to be the cause of a budget variance?
3. "Assets are always equal to the sum of liabili- Balance Sheet.
ties plus owners' equity" is the basic concept
in the organization of the:
4. The financial success or failure of a nursing Return on Equity (net income - i.e., rev-
facility is usually measured by its: enues in excess of expenses) and di-
vides it by owners' equity).
5. If a facility has a current ratio greater than It will be able to pay its bills on time
1, which of the following statements is most (current ratio greater than 1 means that
likely to be true? the organization's current assets exceed
its current liabilities, and this indicates a
good ability to pay short-term liabilities
as they come in).
6. A check should generally be issued only when Purchase Order.
which one of the following is available and
properly signed?
7. The importance of matching revenue with Depreciation (the purpose of recogniz-
the expenses incurred in generating those ing depreciation is to satisfy the Match-
revenues is the reason for recording which ing Principle (GAAP) stated in this ques-
one of the following? tion).
, NAB Study Guide Questions
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8. Using the straight-line method, what would $1,000.
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?
9. Which of the following is a current asset? Accounts Receivables.
10. Under the accrual basis of accounting, rev- Revenues are earned - expenses are in-
enues are recorded when _______ and expens- curred.
es are recorded when ______________.
11. A generally accepted accounting principle Used in its balance sheet an optimistic
(GAAP) would be violated if a company: 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 Objectivi-
ty GAAP, and the use of an optimistic
rather than conservative estimate would
violate the Conservatism GAAP).
12. Last year's food costs for a 100-bed facility $4.73
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)?
13. The Medicare benefit period ends when a Has had 60 straight days with neither
beneficiary any hospital days nor SNF days
14. Medicare Part A coverage of skilled nursing 21st through 100th
facility (SNF) care entails out-of-pocket pay-
ment by the patient of a daily amount for
which days of SNF care in a benefit period?
, NAB Study Guide Questions
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15. Which of the following statements is NOT There are separate prospective rates
true regarding the Medicare Prospective Pay- for capital-related costs (Medicare does
ment System for Skilled Nursing Facilities? 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).
16. A RUG is a: Category in a resident classification sys-
tem.
17. Completion of the Medicare cost report re- Aging of accounts receivable.
quires carrying out all except which one of
the following tasks?
18. The term for unintentional improper or ex- Abuse.
cessive use of benefits of a health insurance
program is:
19. The process by which an individual becomes Spend Down
eligible for Medicaid by incurring medical ex-
penses until personal resources fall below a
specified ceiling is called:
20. Which of the following statements regarding A cash budget may provide advance
budgeting procedure is correct? warning of months when cash outlays
fall short of cash receipts.
21. An example of a variable cost is: Nursing supplies.
22. If the facility's occupancy increases from 94% Decreases slightly (Fixed cost per resi-
to 98%, the fixed cost per resident dent is calculated by dividing total fixed
costs by number of residents (current-
ly-occupied beds). If the occupancy rate
Study online at https://quizlet.com/_evkmd
1. Education and training programs. To obtain more accurate cost estimates
and more control over costs (participa-
tory budget making process - others
are more likely to consider the budget
legitimate).
2. A change in which one of the following is not The personal needs allowance.
likely to be the cause of a budget variance?
3. "Assets are always equal to the sum of liabili- Balance Sheet.
ties plus owners' equity" is the basic concept
in the organization of the:
4. The financial success or failure of a nursing Return on Equity (net income - i.e., rev-
facility is usually measured by its: enues in excess of expenses) and di-
vides it by owners' equity).
5. If a facility has a current ratio greater than It will be able to pay its bills on time
1, which of the following statements is most (current ratio greater than 1 means that
likely to be true? the organization's current assets exceed
its current liabilities, and this indicates a
good ability to pay short-term liabilities
as they come in).
6. A check should generally be issued only when Purchase Order.
which one of the following is available and
properly signed?
7. The importance of matching revenue with Depreciation (the purpose of recogniz-
the expenses incurred in generating those ing depreciation is to satisfy the Match-
revenues is the reason for recording which ing Principle (GAAP) stated in this ques-
one of the following? tion).
, NAB Study Guide Questions
Study online at https://quizlet.com/_evkmd
8. Using the straight-line method, what would $1,000.
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?
9. Which of the following is a current asset? Accounts Receivables.
10. Under the accrual basis of accounting, rev- Revenues are earned - expenses are in-
enues are recorded when _______ and expens- curred.
es are recorded when ______________.
11. A generally accepted accounting principle Used in its balance sheet an optimistic
(GAAP) would be violated if a company: 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 Objectivi-
ty GAAP, and the use of an optimistic
rather than conservative estimate would
violate the Conservatism GAAP).
12. Last year's food costs for a 100-bed facility $4.73
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)?
13. The Medicare benefit period ends when a Has had 60 straight days with neither
beneficiary any hospital days nor SNF days
14. Medicare Part A coverage of skilled nursing 21st through 100th
facility (SNF) care entails out-of-pocket pay-
ment by the patient of a daily amount for
which days of SNF care in a benefit period?
, NAB Study Guide Questions
Study online at https://quizlet.com/_evkmd
15. Which of the following statements is NOT There are separate prospective rates
true regarding the Medicare Prospective Pay- for capital-related costs (Medicare does
ment System for Skilled Nursing Facilities? 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).
16. A RUG is a: Category in a resident classification sys-
tem.
17. Completion of the Medicare cost report re- Aging of accounts receivable.
quires carrying out all except which one of
the following tasks?
18. The term for unintentional improper or ex- Abuse.
cessive use of benefits of a health insurance
program is:
19. The process by which an individual becomes Spend Down
eligible for Medicaid by incurring medical ex-
penses until personal resources fall below a
specified ceiling is called:
20. Which of the following statements regarding A cash budget may provide advance
budgeting procedure is correct? warning of months when cash outlays
fall short of cash receipts.
21. An example of a variable cost is: Nursing supplies.
22. If the facility's occupancy increases from 94% Decreases slightly (Fixed cost per resi-
to 98%, the fixed cost per resident dent is calculated by dividing total fixed
costs by number of residents (current-
ly-occupied beds). If the occupancy rate
