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NAB FINANCE EXAM QUESTIONS WITH CORRECT ANSWERS
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NAB FINANCE EXAM QUESTIONS WITH CORRECT ANSWERS
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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
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