SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
ACCA Financial Management
Start Test
Study First
Subjects
:
certifications
,
business-skills
,
acca
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. (non-operating revenues/total operating revenues)- A ratio that reflects how dependent the organization is on non-patient care related net income.
Non-operating ratio
Creditor
Fixed supplies budget
Opening inventory
2. Recording expenses associated with making revenue at the same time as revenues are recognized
Matching principle
Periodic payments
Co-payments
Billing - collections - and disbursement policies and procedures
3. The system of accounting that recognizes revenues when earned and expenses when resources are used. This method is used by most non-governmental health care organizations. See also Cash basis of accounting.
Accrued expenses
Common costs
Accrual basis of accounting
Coupon rate
4. Ratios that answer the question: How well is the organization positioned to meet its short-term obligations?
Liquidity ratios
Traditional profit centers
Income from investments
Donation
5. Financial obligations that will be paid off over a time period longer than one year
Fixed supplies budget
Spillover cash flows
Non-current liabilities
Balance sheet
6. The increase in the value of an investment from the time it is purchased until the time it is sold.
Capital appreciation
Other support
FV
Long-term debt to net assets ratio
7. [current assets/current liabilities].- This liquidity ratio measures the proportion of all current assets to all current liabilities to determine how easily current debt can be paid off. It is one of the most commonly used ratios.
Net present value
Cost of capital
Notes payable
Current ratio
8. The absence of risk in an investment.
Long-term debt to net assets ratio
Certainty
Accrued expenses
Accumulated depreciation
9. The sources of funds to finance the non-current assets of the organization. Also the debt and equity of the organization.
Capital
Return on total assets
Other support
Mortgage bonds
10. Decisions regarding the acquisition of capital assets. The capital investment decision should be separate from the decision on how to finance capital assets.
Capital investment decisions
Program budget
Fully allocated costs
Collections policies and procedures
11. Expenses that have been incurred - but not yet paid.
Accrued expenses
Loan amortization schedule
FV
Operating cash flows
12. Current year budget projected for the coming fiscal year assumes no program changes and adjust for price - workload - annualizations
Creditor
ABC
Base Budget
Expense volume variance
13. Amounts given to the organization for operating purposes - such as governmental appropriations and unrestricted donations.
Other support
Direct costs
Net working capital
Activity Based Costing
14. (excess of revenues over expenses/total assets)- A measure of how much profit is earned for each dollar invested in assets. In for-profit organizations it is called return on assets and is calculated as: net income/assets.
Return on total assets
Short-term financing
Statement of operations
Expansion decisions
15. Assets = Liabilities + Net Assets (aka Equity).
Revenue enhancement
Controlling activities
Basic accounting equation
Liquidity
16. A certificate attached to a bond representing the amount of interest to be paid to the holder.
Coupon rate
Cash flows from investing activities
Coupon
Disbursement float
17. One of the four major financial statements. It summarizes the organization's revenues and expenses during an accounting period as well as other items that affect its unrestricted net assets. It is analogous to - but different from - an income stateme
Restricted donation
Tangible assets
Statement of operations
Issuer
18. A contract in which the lessee (user) agrees to pay the leassor (owner) a specific amount over a period of time for the use of an asset.
Retained earnings
Cost Accounting
Lease
Notes payable
19. A catchall category for miscellaneous expenses and losses not included in other categories (telephone - travel - meals - etc.).
Income from investments
Cost of goods sold
Not-for-profit
Other expenses
20. The process of distributing service center costs to mission centers - to determine the full cost of each mission center
Footnotes
Bonds
Increase in unrestricted net assets
Allocation
21. Time delays in the billing and collection process. There are four categories of float: billing - collection - transit - and disbursement. An organization's goal is to optimize float for incoming revenues and outgoing bills.
Revenues
Net accounts receivable
Expenses
Float
22. Organizational units responsible for providing services and controlling their costs. There are two major types: clinical cost centers and administrative cost centers.
Capital appreciation
Cost centers
Allocation
Activity Based Costing
23. The percentage of each asset relative to total assets.
Expense volume variance
Bond rating agency
Asset mix
Inflation
24. Decisions regarding the relative amount of debt and equity used to finance the organization's non-current assets.
Net Assets
Times interest earned
FV
Capital structure decision
25. That point at which total revenues equal total costs. It is described by the equation: (price x volume) = fixed costs + (variable cost per unit x volume).
Capital
Long-term investments
Not-for-profit
Breakeven point
26. The process of adjusting for the time value of money backward in time to present value. See also Compounding.
Long-term investments
Capital appreciation
Short-term financing
Discounting
27. Activity-based costing. A method to determine the costs of a service - product - or customer by tracing the resources consumed. ABC focuses on: I) controlling as well as calculating costs - 2) tracing as opposed to allocating costs - and 3) the impor
Donation
Horizontal analysis
ABC
Common costs
28. Revenues generated from an organization's operating activities.
Operating activities
Performance measure
Operating revenues
Working capital
29. A transaction that reduces the risk of an investment.
Capital
For-profit
Hedge
Net Assets to Total Assets
30. Portion of the profits the organization keeps in-house to use in support of its mission.
Effectiveness
Parent organization
Retained earnings
Cost centers
31. A measure of the income earned from operating activities. It is calculated as: unrestricted revenues - gains - and other support -expenses and losses.
Operating income
Strategic decisions
Administrative cost centers
Clinical cost centers
32. Organizational units responsible for their own costs that provide administrative support to other organizational units or the organization
Capital structure decision
Current liabilities
Administrative cost centers
Hedge
33. The cumulative amount of depreciation recognized on an asset since its purchase. An asset's book value is equal to its purchase price less the amount of accumulated depreciation.
Step-down method
Hedge
Accumulated depreciation
Collections policies and procedures
34. Demonstrates the ability to pay off long term debt
Capital appreciation
Traditional profit centers
Long Term Solvency ratios
ABC
35. The section of the expense budget that forecasts salary and benefits.
Other revenues
Fixed labor budget
Contribution margin
SWOT analysis
36. Costs that stay the same in total over the relevant range as volume increases - but that change inversely on a per unit basis.
Acid test ratio
Fixed costs
Cash flows from operating activities
Cost avoidance
37. The revenue that the organization has a right to collect. It is computed as: gross patient service revenues – contractual allowance and charity care.
Statement of cash flows
Operating margin
Operating revenues
Net patient service revenue
38. A method to evaluate the feasibility of an investment by determining how long it would take until the initial investment is recovered. This method does not account for the time value of money.
Activity Based Costing
Other revenues
Payback
Administrative profit centers
39. One of the four major financial statements. It answers the question: Where did our cash come from and where did it go during the accounting period?
Statement of cash flows
Mission Center
Long-term financing
Liquidity
40. A benefit paid for in advance (rent - insurance - etc.). Also called prepaid expense.
Prepaid assets
Deferred revenues
Operating revenues
Days cash on hand
41. 1) The degree to which power and authority is concentrated in an organization. 2) The degree to which a variety of services are offered at a single location.
Centralization
Debt to equity
Capital structure decision
Performance measure
42. That process of budgeting where the environmental assessment and planning of future activities are largely decided upon by a few individuals - and the budget is essentially dictated to the rest of the organization. Often called authoritarian approach
Other support
Top-down budgeting
Income from investments
Fixed supplies budget
43. The method by which to distribute service center costs to mission centers; in general the one that most accurately measures use by the cost centers that receives its services (food service - # of meals - hospital laundry - # of pounds processed)
Net accounts receivable
Basis of Allocation
Opening inventory
Present value of an annuity
44. The amount the holder of the coupon receives periodically - usually semiannually. Over the year - it equals the coupon rate times the face value of the bond.
Coupon payment
Lien
Mission Center
Operating expenses
45. The amount of supplies used to provide a service or good.
Net increase (decrease) in cash and cash equivalents
Horizontal analysis
Statement of changes in net assets
Cost of goods sold
46. Demonstrates the extent to which the organization is earning money from its assets. Not usually as imp for NPs - varies w/ NP.
Depreciation
Revenue budget
Asset Management ratios
Compounding
47. Literally non-movable assets. Generally used to refer to buildings and equipment.
Average Days Inventory
FV
Budget
Fixed assets
48. The degree of dispersion of responsibility within an organization. See also Centralization.
Incremental cash flows
Tangible assets
Decentralization
Ratio analysis
49. Organizational unit given the responsibility to carry out one or more tasks and/or achieve one or more outcomes.
Responsibility center
Opportunity cost
Program budget
Assets
50. The central document of the planning/control cycle. It identifies revenues and resources that will be needed by an organization to achieve its goals and objectives.
FTE
Fixed labor budget
Annuity
Budget