Download NAB PRACTICE SOLUTION 2026 SOLVED ITEMS CONFIRMED A+ and more Exams Corporate Finance in PDF only on Docsity!
NAB PRACTICE SOLUTION 2026 SOLVED
ITEMS CONFIRMED A+
◉ An Income Statement shows? Answer: Revenues and Expenses ◉ Liabilities that may or may not be incurred by a facility depending on the outcome of a future event? Answer: Contingent Liabilities (ex. Court Case) ◉ A fixed daily payment? Answer: Per Diem ◉ Residents funds in excess of what amount must be kept in an interest bearing account? Answer: Medicaid- $50; Medicare-$ ◉ (Cash + Current Receivables) / Current Liabilities = Answer: Acid Test Ratio ◉ Current Assets / Current Liabilities Answer: Current Ratio ◉ Under double entry rules increases in assets and expenses are recorded as? Answer: Debits
◉ Under double entry rules decreases in assets and expenses are recorded as? Answer: Credits ◉ Under double entry rules increases in Liability, Revenue and Capital accounts are recorded as? Answer: Credits ◉ Under double entry rules decreases in Liability, Revenue and Capital accounts are recorded as? Answer: Debits ◉ Services which are not generally provided to most residents and which may be separately billable? Answer: Ancillary Services (ex. Labs, Radiology, Pharmacy Services, and Rehab Therapies) ◉ Thresholds may not rise over? Answer: 1/4 Inch ◉ What is the acceptable air temperature range in a facility? Answer: 71 - 81 Degrees Fahrenheit ◉ Soiled Linen carts should be decontaminated how often? Answer: Weekly (minimum) or ASAP when visibly contaminated. ◉ A Hazard posed by medications is a? Answer: Health Hazard (Chemical)
◉ What are the 5 levels of needs in Maslow's Hierarchy? Answer: 1) Food (physiological); 2) Safety; 3) Love; 4) Power (esteem); 5) Self- Actuating Needs (ex. Fulfilling ones potential) ◉ Theory X advocates? Answer: The use of Fear of Punishment to motivate (assumes employees are inherently lazy and dislike work) ◉ Theory Y advocates? Answer: Rewards employees for accomplishing goals (assumes employees like work as much as play) ◉ Theory Z advocates? Answer: Participation in Nature. Employees have input into how their work is done and how decisions are made. ◉ What does Herzberg's Two Factor Theory teach regarding employees negative feelings about work? Answer: Generally associated with the environment in which they are working. ◉ What does Herzberg's Two Factor Theory teach regarding employees positive feelings about work? Answer: When employees feel good about work they associate it with the work itself. ◉ Herzberg's dissatisfaction factor equates to? Answer: Hygiene Factors (ex. Status, Job security, salary, fringe benefits, work conditions)
◉ Herzberg's satisfaction factor equates to? Answer: Motivators (ex. Challenging work, recognition, responsibility) ◉ Type of authority characterized by direct supervision over a subordinate? Answer: Line Authority ◉ Type of authority characterized by advisory capacity? Answer: Staff Authority ◉ The Safety Medical Devices Act requires that a serious injury or death be reported to whom and when? Answer: Incidents resulting from medical devices causing death or serious injury must be reported to SMD within 24 hours and to the FDA within 10 days. ◉ The Fair Labor Standards Act requires overtime be computed how and what rate? Answer: OT computed at 1 1/2 times the regular pay rate. Based on 14 day period with any time over 8 hrs daily and over 80 hrs in the 14 day period being overtime. ◉ To avoid retraining and a competency evaluation program a C.N.A. must work continuously for how long? Answer: 24 Consecutive Months ◉ What does QAC stand for? Answer: Quality Assurance Committee
◉ What information is included in Form 941? Answer: Amount witheld for federal income taxes and the employer's & employee's share of FICA and Medicare taxes. ◉ Residents paying in this manner may be billed in advance? Answer: Self pay residents (third party programs may not be billed in advance) ◉ Residents must be notified when their account rises to within what amount of the resource limit the state has established? Answer: Within $200 of the limit ◉ (Cash + Marketable Securities) / ((Total Operating Expenses - Depreciation) / 365) = Answer: Days of Cash ◉ Days of Cash Answer: (Cash + Marketable Securities) / ((Total Operating Expenses - Depreciation) / 365) = ◉ Net Resident Accounts Receivable from all Sources / (Net Patient Revenue / 356) = Answer: Days in Resident Accounts Receivable ◉ Outstanding Accounts Receivable / (3 month net revenue / total days in 3 month period) = Answer: DSO (Daily Sales Outstanding)
◉ DSO (Daily Sales Outstanding) Answer: Outstanding Accounts Receivable / (3 month net revenue / total days in 3 month period) = ◉ The operating budget is composed of what two categories? Answer: Revenue and Expense Categories ◉ The type of budget that projects cash inflows and outflows? Answer: Cash Budget ◉ The type of budget that reflects long-term capital decisions? Answer: Capital Budget ◉ The organizations expected financial condition if the budgeted amounts are realized? Answer: Pro Forma Statement ◉ Liquid assets include? Answer: Short term notes, cash, and accounts receivable ◉ Where must Sharps containers be provided? Answer: in the Laundry Room and Every Med Cart ◉ What space must be provided below automatic sprinkler heads? Answer: 18 inches (items may not be stored above 18 inches below the sprinkler heads)
◉ Drugs with low potential for abuse and limited addictive properties and a current accepted medical use? Answer: Schedule 4 (ex. Valium, Xanax, Phenobarbital, Rohypnol) ◉ Drugs with lowest potential for abuse, current accepted medical use, often don't require a prescription? Answer: Schedule 5 (ex. Cough suppressants with Codeine) ◉ Under the ADA (Americans with Disabilities Act) what item is not a disability? Answer: Illiteracy - Not having learned to read ◉ The Pregnancy Discrimination Act is an amendment to what other act? Answer: The Civil Rights Act ◉ Fringe benefits are typically outline in? Answer: Personnel Policies ◉ The ERISA (Employee Retirement Income Security Act) is enforced by which agency? Answer: EEOC (Equal Employment Opportunity Commission) ◉ What must be done after entering a transaction in the journal and posting it to the ledger? Answer: Periodically balance each account
◉ What terms are used to refer to inventory? Answer: LIFO, FIFO, Physical, & Perpetual (Posting is Not) ◉ FUTA refers to? Answer: Federal Unemployment Tax Act (unemployment tax) ◉ An invoice is usually a? Answer: List ◉ A current trial balance includes? Answer: Debits, Credits, Names of Accounts (not zero balance) ◉ How much space must be between beds in multibed rooms? Answer: 3 Feet ◉ What agency prepared "standard precautions" procedures? Answer: CDC (Centers for Disease Control and Prevention) ◉ What entity establishes the resident to bathroom/toilet ratio? Answer: The State ◉ A fire that is out of control is referred to as a? Answer: Flashover
◉ How long must medical records be maintained? Answer: 5 years after discharge or 3 years after a discharged resident reaches the age of 18. ◉ Examples of Schedule 2 drugs? Answer: Morphine, Codeine, Ritalin, and Nembutal, etc. ◉ The Comprehensive Drug Abuse Prevention and Control Act established the? Answer: The 5 Schedules of drugs. ◉ A modality is a? Answer: Specific Treatment ◉ When must a continuation of employee insurance be offered under COBRA? Answer: Employee retirement, marriage dissolved, employee fired (not if the employee's work hours are reduced) ◉ (required staff / provided staff) * 100 = Answer: Employee Productivity ◉ A declining proration of asset cost is defined as? Answer: Amortization ◉ The income of a proprietary corporation remaining after all costs, taxes, and dividends is defined as? Answer: Retained Earnings
◉ What is the primary source of payment in a nursing facility? Answer: Medicaid ◉ To what does a chart of accounts compare? Answer: Table of Contents ◉ Employees pay what percentage of the FICA cost? Answer: 50%, the employer pays the other 50% ◉ The percentage of accounts outstanding for more than 60 days should never exceed? Answer: 5% ◉ All corridor doors must have a solid banded-wood core or an equivalent with what fire protection rating? Answer: 1 1/2 hours ◉ What is the national standard for budgeting the time required for cleaning a facility? Answer: One hour per day per housekeeping employee per 1,000 sq.ft. ◉ The handrails in stairwells must extend beyond the first and last steps by? Answer: 12 inches
◉ Quality improvement is defined as? Answer: The development and maintenance of quality care programs. ◉ Quality control relates to policies and procedures designed to? Answer: Maintain quality care. ◉ When must the admission medical evaluation (physical examination) be performed? Answer: Within 48 hours of admission unless such examination was performed within 5 days prior to the admission. ◉ What are the maximum forward and side reaches for switches and controls? Answer: Forward Reach - 48 inches and Side Reach - 54 inches ◉ EEOC enforces which three acts? Answer: Equal Pay Act, Title 7 of the Civil Rights Act, and the Age Discrimination in Employment Act (not the Fair Labor Standards Act). ◉ OSHA is under the? Answer: U.S. Department of Labor ◉ Under COBRA an employee has how many days to elect to continue coverage? Answer: 60 Days
◉ Air temperature should be measured how many feet above the floor in resident rooms and dining areas? Answer: 3 Feet ◉ Walks must be how wide? Answer: 36 Inches ◉ According to Medical Device Reporting user facilities must keep records for? Answer: 2 years ◉ After interruption of normal power the emergency generator must start and transfer power within? Answer: 10 seconds ◉ A toilet seat for the disabled must be how high? Answer: 17 to 19 inches from the floor ◉ Bathroom and toilet doors must be how wide? Answer: 32 inches ◉ According to the Life Safety Code no room shall be more than what distance from an exit? Answer: 100 Feet ◉ Title 18 of the Social Security Act is basically an? Answer: Insurance Program ◉ Title 15 of the Social Security Act is a? Answer: Assistance Program (based on need)
◉ An admission assessment is to be complete with how many hours of admission? Answer: 8 Hours (RN's responsibility) ◉ What is a drug holiday? Answer: A break from the drug to see how the patient responds ◉ To what does the physicians desk reference relate? Answer: Drugs ◉ Can a pharmacist order that a certain lab be taken? Answer: Yes, the physician is involved but doesn't necessarily have to agree with the pharmacist. ◉ When must I-9 forms be completed for new employees? Answer: Within 3 business days of start of employment ◉ What may an administrator ask if employees attempt to organize a labor union? Answer: If the employee has signed a union card ◉ When must all investigations of abuse be reported to the proper state authorities? Answer: Within 5 working days ◉ Under COBRA when does coverage begin? Answer: Coverage begins on the date coverage would otherwise have ended
◉ Under COBRA how long may coverage be extended? Answer: 18 months ◉ Whom is most affected by Title 1 of the ADA? Answer: The health care facility administrator ◉ What is the typical cost of fringe benefits for a an employee? Answer: 15-30% of wages ◉ What does the Wagner Act guarantee? Answer: Bargaining rights for employees ◉ A phrase meaning let the employer answer for the acts of his/her employees? Answer: Respondeat Superior ◉ Under OSHA what is the maximum penalty for each "serious violation"? Answer: $7, ◉ Under OSHA what is the maximum penalty for falsifying records? Answer: $70, ◉ Generally, cost reports are due within how many days of the end of the fiscal year? Answer: 90 Days
