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NAB Finance 2023 Study Guide (Verified by Expert)
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NAB Finance 2023 Study Guide (Verified by Expert)
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NAB Finance1. Process of Financial Management: >>> process of ensureing materials
and other resources are bought and used efficiently and economically;
attain goals.
2. Value of Financial Management: >>>Administrator has informatio to
make deci- sion and manage facility. Control device - measure
performance against original plans.
3. Administrator's role in Financial Mangement: >>>owners hold
administrator re- sponsible 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.
4. asset: a thing of value, things owned, such as cash, equipment, real
estate.
5. current asset: cash or other short-lived asset, i.e. A/R and CDs that
are used up usually within 1 year.
6. fixed or non-current assets: will not be used up within a year||i.e.
,building, equipment, etc.
7. tangible assets: have physical characteristics, they can be
SEEN and TOUCHED
8. Intangible assets: are non-physical, such as COPYRIGHTS,
patents and GOODWILL
9. book value: is cost of a depreciable asset less accumulation
depreciation
||depreciable asset - depreciation
10.capital: is a term meaning funds to be used in business. Real esate,
buildings and certain equipment can be included under certain
conditions. |
11.investment capital: cash used to purchase real estate and
equipment, and to build - used to produce operational revenues.
12.working capital: excess of CURRENT ASSETS/CURRENT LIABILITES.
|A measure of company's ability to pay bills.
13.capital expenditure: expenses of increasing book value of facility
assets.
14.contract for personal services: involves the offer of money,
consideration, acceptance. Spell out duties, authority, time,
remuneration, ESCAPE CLAUSE, other terms
15.earnings: refers to generated revenues, or income. Gross erarnings
are total revenues or income
16.gross profit: net sales - cost of goods
, 17.operating profit: gross profit - operating expenses
18.net earnings (net profit): revenues - expenses
19.dividends: earnings distributed to owners
20.retained earnings: earnings not distributed to stockholders, limited,
or IRS will tax.
21.equities: interest in or claims upon assets by the owners ||
capital stock + retained earnings
22.fixed expense: fixed expense remains constant without regard to
volume of business||i.e. mortgage payments, leases, taxes
23.variable expense: change with volume of business||i.e. food, medical
supplies, utilities, etc. Often shown graphically.
24.semi-variable expense.: 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 adminis- trator may send an aide home to keep within
budgeted HPPD numbers, thus that employee's wage may be
described as a semi-variable expense.
25.gross income: total income from all services. Also, capital gains,
interest on bonds, workers' compensation insurance benfits
26.operating expense: those incurred in normal operations of
business - salaries, benefits, utilities, materials, rents, etc.
27.liabilities: debts or obligations owed.
28.current liabilities: are debts usually due within one year,such as
FICA taxes, FWT, notes payable and dividends
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