Test your basic knowledge |

ACCA Financial Management

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. A contract between a lender and a potential borrower preauthorizing the potential borrower's right to borrow up to a specific amount on request as long as they fulfill the terms and conditions of the contract. Also called a letter of credit.






2. The difference between what was planned (budgeted) and what was achieved (actual).






3. The cost of a capital asset (i.e. building or equipment) minus accumulated depreciation.






4. Assets that have restrictions on their use which will be removed either with the passage of time or the occurrence of some event.






5. The method of capital budgeting that compares the cash flows resulting from continuing with the existing alternative to those that would result if the equipment were replaced.






6. The changes in cash resulting from the normal operating activities of the organization.






7. The amount of inventory on hand at the end of an accounting period. See also Beginning inventory.






8. The process of distributing service center costs to mission centers - to determine the full cost of each mission center






9. The rate of return required to undertake a project. Also called the hurdle rate or discount rate.






10. An assignment or grading of the likelihood that an organization will not default on a bond.






11. Return on investment. The percentage gain or loss experienced from an investment.






12. An entity that owns other companies.






13. I) Calculating interest using the compound interest method. 2) Adjusting for the time value of money forward in time to a future value. See also Compound interest method and Discounting.






14. Organizational units responsible for providing administrative support at a profit to other organizational units or to the organization as a whole and/or raising funds externally.






15. Bonds that have received a rating ranging from AM to BBB (at S&P) - or Aaa to Bbb (Moody's) - of which the highest are called quality ratings.






16. Expenses of the organization incurred in non-health-care related activities.






17. Costs that stay the same in total over the relevant range as volume increases - but that change inversely on a per unit basis.






18. Decisions regarding the relative amount of debt and equity used to finance the organization's non-current assets.






19. Revenues generated from an organization's operating activities.






20. The increase in the value of an investment from the time it is purchased until the time it is sold.






21. Health maintenance organization. Entities that receive premium payments from enrollees with the understanding that the HMO will be financially responsible for all predefined health care required by its enrollees for a specified period of time. The he






22. Operating income not reported elsewhere under revenues - gains - and other support.






23. 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.






24. Cash flows that occur solely as a result of undertaking a project. Basically the marginal difference between alternatives.






25. A note payable that has as collateral real assets and that requires periodic payments.






26. The amount of time between when an organization receives a service and pays for it.






27. The amount of supplies used to provide a service or good.






28. Expenses that have been incurred - but not yet paid.






29. The budget format that lists revenues and expenses by category - such as labor - travel - and supplies. Categories are sometimes broken down into sub-categories. See also Performance budget and Program budget.






30. (tax exempt revenue bonds)- Bonds in which the interest payments to the investor are exempt from the IRS. These bonds must be issued by an organization that has received tax exemption from the IRS and be used to fund projects that qualify as "exempt






31. An entity that sells bonds in order to raise money.






32. The total amount of multiyear debt due in future years.






33. A section of the statement of cash flows used to report such activities as borrowing and paying back loans.






34. 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.






35. 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.






36. Revenues of the organization earned in non-healthcare related activities.






37. [long-term debt/net assets]- A measure of the proportion of an organization's assets that are financed by debt as opposed to equity. In for-profit organizations - it is called the long-term debt to equity ratio and is calculated using the formula [lo






38. Organizational units responsible for providing health care related services to clients - patients - or enrollees - and the related costs thereof.






39. How an organization chooses to finance its working capital needs.






40. When products are manufactured in batches in different sizes - and overhead activities are affected by the size of the batch being produced






41. The process of adjusting for the time value of money backward in time to present value. See also Compounding.






42. The rise in an economy's general level of prices.






43. The activities of an organization directly related to its main line of business.






44. One of the four major financial statements. It explains the changes in net assets from one period to the next on the balance sheet. Also called statement of changes in owners' equity in a for-profit business.






45. Tools used to increase the amount of cash available to the organization. The objective of billing - credit - and collection policies is to accelerate cash receipts; the objective of cash disbursement policies is to slow down cash outflows.






46. An entity that is owed money for lending funds or supplying goods or services on credit.






47. Financing used expressly for the purchase of non-current assets.






48. A series of equal cash flows made or received at regular time intervals. Ordinary annuities occur at the end of each period whereas annuities due occur at the beginning of each period.






49. Bonds that hold the health care provider's real property and equipment as security or collateral in case of default.






50. Assets that have a physical presence.







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests