NAB: Finance (19 questions) Exam Questions With Correct Answers A+
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Module
NAB
Institution
NAB
NAB: Finance (19 questions) Exam Questions
With Correct Answers A+
Why should the administrator get the department heads involved in the budget-making process? -
AnswerTo obtain more accurate cost estimates and more control over costs
A change in this is not likely to be the cause of a budget v...
NAB: Finance (19 questions) Exam Questions
With Correct Answers A+
Why should the administrator get the department heads involved in the budget-making process? -
Answer✔To obtain more accurate cost estimates and more control over costs
A change in this is not likely to be the cause of a budget variance? - Answer✔the personal needs
allowance
financial statement *s*ummarizing assets, liabilities and retained earnings or net worth. Reflect
solvency and financial position - Answer✔balance *s*heet
The financial success or failure of a nursing home is usually measured by its? - Answer✔return
on equity
If a facility has a current ratio greater than 1, what does that mean? - Answer✔It will be able to
pay its bills on time (working capital), solvency
A check should only be issued only when one of the following is available and properly signed?
- Answer✔purchase order
The importance of matching revenue with the expenses incurred in generating those revenues in
the reason for recording which of the following? - Answer✔The purpose for recognizing
depreciation is to satisfy the *Matching Principle*
Using the *straight-line method*, what would be the *annual depreciation expense* for a piece
of equipment having a cost of $6,000 a manufacturer's warranty for 2 years and an estimated
useful life of 6 years? - Answer✔$1,000
Formula: cost/useful life years in the asset's estimated useful life. $6,000/6 = $1,000
Which of the following is a *current* asset? - Answer✔Accounts receivable, *cash*, supplies
inventories and pre paid expenses
Under the accrual basis of accounting, revenues are recorded when________________ and
expenses are recorded when ____________. - Answer✔revenues are *earned*----expenses are
*incurred* Recorded in the *time period* in which they were realized
A generally accepted accounting principle (GAAP) would be violated if a company did this? -
Answer✔used in its *balance sheet* and optimistic estimate of the current market value of its
building
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Last year's food cost 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 PPD? - Answer✔$4.73
( # of beds x 365 days x %)
100 x 365 x .85 = 31,025/146,820 = $4.73 food cost PPD
When does the Medicare benefit period end for the beneficiary? - Answer✔It starts on admission
to hospital and ends when that person has not had any hospital or SNF days for *60 days in a
row*
Medicare Part A coverage of skilled nursing facility entails out of pocket payment by the patient
of a daily amount for which days of the SNF care in a benefit period? - Answer✔21st day
through the 100th day. Must pay Medicare co-payment. The first 20 days Medicare pays the full
amount
The Medicare PPS for skilled nursing facilities means what? - Answer✔The RUG rate that the
facility receives is expected to cover all types of costs. The assignment of the RUG is made on
the basis of information from the MDS.
A RUG is a? - Answer✔category in a resident classification system
Completion of the Medicare cost report requires what? - Answer✔cost funding, determination of
allowable costs and apportioning the costs for caring for Medicare residents from the costs for
caring for non-Medicare residents
The term for unintentional improper or excessive use of benefits of a health insurance program
is? - Answer✔fraud
The process by which an individual become *eligible* for Medicaid by incurring medical
expenses until personal resources *fall below* a *specified ceiling* is called? - Answer✔spend
down
capital budget - Answer✔The capital budget is prepared for fixed expenses such as real estate,
buildings and equipment
An example of a variable cost is? - Answer✔nursing supplies (this changes because of
fluctuations in the census)
If the facilities occupancy increases from 94% to 98%, what happens to the fixed cost per
resident? - Answer✔decreases slightly
A nursing home is considering the purchase of a new dish washing machine that costs $6000 and
has a useful life of 10 years. It is estimated that it will reduce annual operating costs by $800
over the next ten years. What is the *payback period*? - Answer✔7.50 years
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