NAB: Finance & Business Practice Exam Questions With Correct Answers A+
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Module
NAB
Institution
NAB
NAB: Finance & Business Practice Exam
Questions With Correct Answers A+
The new accountant informs the administrator that to simplify things, he has incorporated all
purchases that will be paid for the next few years into the accounts payable journal. The
administrator should _____. - Answerc. ...
NAB: Finance & Business Practice Exam
Questions With Correct Answers A+
The new accountant informs the administrator that to simplify things, he has incorporated all
purchases that will be paid for the next few years into the accounts payable journal. The
administrator should _____. - Answer✔c. begin a search for a new accountant
The administrator seeks to be licensed without having to meet all the conditions new entrants
would have to meet. He/she seeks to be ______. - Answer✔grandpersoned
Normally, courts of appeal do not have _____. - Answer✔original jurisdiction.
The administrator decides to offer newer forms of physical therapy that reduce use of currently
used physical therapy methods. He/she has ______ the current methods. - Answer✔cannibalized
Annually, or more often, inventory, to determine beginning inventory, should be ______. -
Answer✔c. physically counted
The quick ratio analysis of current assets is ______ the current ratio. - Answer✔more rigorous
than.
is a measure of how well a company can meet its short-term financial liabilities. - Answer✔quick
ratio analysis - Also known as the acid-test ratio, it can be calculated as follows: (Cash +
Marketable Securities + Accounts Receivable) / Current Liabilities.
a liquidity and efficiency ratio that measures a firm's ability to pay off its short-term liabilities
with its current assets. It is an important measure of liquidity because short-term liabilities are
due within the next year. - Answer✔current ratio
The main difference between the current ratio and the quick ratio - Answer✔Quick Ratio offers a
more conservative view of the company's ability to meets its short-term liabilities with its short-
term assets because it does not include inventory and other current assets that are more difficult
to liquidate
An accounting principle requiring the facility to correspond the revenues it earns in a given
period to the expenses it incurred during that same period is the ______. - Answer✔d. matching
principle
is the general concept of recognizing expenses and liabilities as soon as possible when there is
uncertainty about the outcome, but to only recognize revenues and assets when they are assured
of being received. - Answer✔The conservatism principle
refers to the ability for financial statements, footnotes and/or supplemental schedules to provide a
comprehensive and clear description of a company's financial position. - Answer✔Adequate
disclosure principle
states that an accounting standard can be ignored if the net impact of doing so has such a small
impact on the financial statements that a reader of the financial statements would not be misled. -
Answer✔The materiality principle
The chain "buys back" a portion of its outstanding stock by giving one new share in place of
each four previously held shares. The chain has accomplished a/an ______. - Answer✔a. reverse
split
In general, the ownership patterns for U.S. nursing facilities in 1999 _____. - Answer✔c. varied
widely from state to state
The accrual accounting approach matches revenues and expenses ______. - Answer✔for each
time period.
A verdict, given by a jury at the direction of a judge is known as ______. - Answer✔b. directed
verdict
is a pre-trial procedure in a lawsuit in which each party, through the law of civil procedure, can
obtain evidence from the other party or parties by a request for answers to interrogatories,
request for production of documents, request for admissions and depositions. Discovery can be
obtained from non-parties using subpoenas. - Answer✔discovery
a formal charge or accusation of a serious crime. - Answer✔indictment
a judicial order that restrains a person from beginning or continuing an action threatening or
invading the legal right of another, or that compels a person to carry out a certain act, e.g., to
make restitution to an injured party. - Answer✔injunction
Money invested in the facility, also known as the facility's net worth, is normally referred to as
_____. - Answer✔capital
Act that generally establishes employer responsibility without regard to fault or negligence for
employees' illness or injuries that arise out of performance of the job are known as ____. -
Answer✔Worker's Compensation Act.
A revision of an accounting forecast or assumption about the facility's expected or experienced
performance is a/an ______. - Answer✔change in accounting estimate.
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