Exam (elaborations)
NAB FINANCE EXAM QUESTIONS WITH CORRECT ANSWERS
- Course
- Institution
NAB FINANCE EXAM QUESTIONS WITH CORRECT ANSWERS
[Show more]
Content preview
NAB FINANCE EXAM QUESTIONS WITHCORRECT ANSWERS
Process of financial management - answer-process of ensuring materials and other
resources are bought and used efficiently and economically; attain goals.
Value of financial management - answer-administrator has information to make decision
and manage facility. Control device - measure performance against original plans.
Administrator's role in financial management - answer-owners hold administrator
responsible for proper financial management of facility. Varies according to type of
ownership. Chain organizations may do budgeting, payroll, group purchasing -
administrator may have little input. Smaller organizations usually have cpa to supervise
accounting, make financial reports, handle payroll, etc.
Asset - answer-a thing of value, things owned, such as cash, equipment, real estate.
Current asset - answer-cash or other short-lived asset, i.e. A/r and cds that are used up
usually within 1 year.
Fixed or non-current assets - answer-will not be used up within a year||i.e. Building,
equipment, etc.
Tangible assets - answer-have physical characteristics, they can be seen and touched
Intangible assets - answer-are non-physical, such as copyrights, patents and goodwill
Book value - answer-is cost of a depreciable asset less accumulation depreciation ||
depreciable asset - depreciation
Capital - answer-is a term meaning funds to be used in business. Real estate, buildings
and certain equipment can be included under certain conditions. |
Investment capital - answer-cash used to purchase real estate and equipment, and to
build - used to produce operational revenues.
Working capital - answer-excess of current assets/current liabilites. |a measure of
company's ability to pay bills.
Capital expenditure - answer-expenses of increasing book value of facility assets.
Contract for personal services - answer-involves the offer of money, consideration,
acceptance. Spell out duties, authority, time, remuneration, escape clause, other terms
, Earnings - answer-refers to generated revenues, or income. Gross earnings are total
revenues or income
Gross profit - answer-net sales - cost of goods
Operating profit - answer-gross profit - operating expenses
Net earnings (net profit) - answer-revenues - expenses
Dividends - answer-earnings distributed to owners
Retained earnings - answer-earnings not distributed to stockholders, limited, or irs will
tax.
Equities - answer-interest in or claims upon assets by the owners ||capital stock +
retained earnings
Fixed expense - answer-fixed expense remains constant without regard to volume of
business||i.e. Mortgage payments, leases, taxes
Variable expense - answer-change with volume of business||i.e. Food, medical supplies,
utilities, etc. Often shown graphically.
Semi-variable expense. - answer-dr. Allen uses this term in reference to cna wages. For
example, if a facility census drops by 5 from one day to the nest, the administrator may
send an aide home to keep within budgeted hppd numbers, thus that employee's wage
may be described as a semi-variable expense.
Gross income - answer-total income from all services. Also, capital gains, interest on
bonds, workers' compensation insurance benefits
Operating expense - answer-those incurred in normal operations of business - salaries,
benefits, utilities, materials, rents, etc.
Liabilities - answer-debts or obligations owed.
Current liabilities - answer-are debts usually due within one year, such as fica taxes, fwt,
notes payable and dividends
Long-term liabilities - answer-debts not due for a period usually more than one year,
such mortgages, bonds, and property liens.
Lien - answer-claim or charge on property for payment of obligations
Liquidity - answer-denotes how quickly an asset can be converted to cash without
appreciable loss
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller biggdreamer. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now