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ACCA Financial Management
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Study First
Subjects
:
certifications
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business-skills
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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. Series of payments over time - such as interest paid to bondholders.
Coupon
Multiyear budget
Periodic payments
Lender
2. [(actual volume -budgeted volume) x budgeted cost per unit).- The portion of total variance that is due to actual volume being either higher or lower than budgeted volume. It is the difference between the expenses forecast in the original budget and
Expense volume variance
Allocation
Transaction
Time value of money
3. Gross proceeds less the underwriter's fee and other issuance fees.
Prepaid assets
Net proceeds from a bond issuance
Expense volume variance
Program budget
4. (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.
Expansion decisions
Leverage
Other revenues
Return on total assets
5. Operating income not reported elsewhere under revenues - gains - and other support.
Prepaid assets
Other revenues
Direct costs
Cost avoidance
6. IA category of non-current assets not intended to be used for operations - but only for capital appreciation and dividends - and that will be held for a period longer than one year.
Administrative cost centers
Long-term investments
Days cash on hand
Spillover cash flows
7. I) Measuring inputs against outputs. 2) The cost of service per unit rendered.
Efficiency
Restricted donation
Certainty
Expense volume variance
8. Demonstrates the extent to which the organization is earning money from its assets. Not usually as imp for NPs - varies w/ NP.
Cash budget
Excess of revenues over expenses
Fixed costs
Asset Management ratios
9. Costs that are traced to a cost object. See also Indirect costs and Cost object.
Precautionary purposes
Other support
Direct costs
Fully allocated costs
10. Responsibility centers responsible for making a certain return on investments.
Retained earnings
Investment centers
Revenues
Total revenue
11. 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.
Controlling activities
Compounding
Billing - collections - and disbursement policies and procedures
Coupon
12. [Surplus/Operating Revenues]
Not-for-profit
Capital investment decisions
Bond rating agency
Profit margin
13. Decisions regarding the relative amount of debt and equity used to finance the organization's non-current assets.
Parent organization
Capital structure decision
Fixed (interest) rate debt
Opportunity cost
14. [Net Assets/Total Assets]. This ratio reflects the proportion of total assets financed by equity.
Net Assets to Total Assets
Disbursement float
Expense volume variance
Liabilities
15. A method of allocating costs that are not directly paid for (utilities - rent - administration) into those products or services to which payment is attached (day of care - a brief visit). See also Activity-based costing.
Decentralization
Step-down method
Assets
Effectiveness
16. process of measuring the resources (costs) used to produce results.
Cash flows from financing activities
Cost Accounting
Mail float
Investment centers
17. 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.
Capital appreciation
Accumulated depreciation
Mutually exclusive projects
Allocation
18. Expenses of the organization incurred in non-health-care related activities.
Leverage
Operating revenues
Non-operating expenses
Mutually exclusive projects
19. 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.
Lease
Equity financing
Excess of revenues over expenses
Fixed asset turnover
20. An organization's financial obligations that are to be paid within one year.
Collateral
Current liabilities
Cash flows from operating activities
Allocation base
21. Non-operating income.
Efficiency
Top-down/bottom-up approach
Accumulated depreciation
Other income
22. 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.
Mutually exclusive projects
Float
Donor
Cost Accounting
23. Requiring the patient to pay part of his/her health care bill. These payments are used to prevent over-utilization of services.
Tangible assets
Quick ratio
Depreciation
Co-payments
24. Recording expenses associated with making revenue at the same time as revenues are recognized
Cash flows from investing activities
Accounting period
Matching principle
Collection float
25. 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
Strategic financial planning
Common costs
HMO
Other support
26. The delay between providing the service and getting the bill to the patient or third party. There are two aspects of billing float: assembling the bill and delivering the bill to the patient or third-party payor.
Billing float
Common costs
Average Days Receivable
Long Term Solvency ratios
27. An organization whose profits can be distributed outside the organization and must pay taxes. Also called investor-owned organizations.
Billing - collections - and disbursement policies and procedures
Bond rating agency
For-profit
IRR
28. The budget that forecasts the operating and - in some cases - the non- operating revenues that will be earned during the budget period.
Indirect costs
Revenue budget
Capital structure ratios
Other revenues
29. Each service center
Single/Simple Step
Administrative cost centers
Mission Center
Permanently restricted net assets
30. A catchall category for miscellaneous expenses and losses not included in other categories (telephone - travel - meals - etc.).
Other expenses
Co-payments
Capital appreciation
Activity Based Costing
31. Return on investment. The percentage gain or loss experienced from an investment.
Interest
Times interest earned
Net working capital
ROI
32. The costs of a service after taking into account its direct and fair share of allocated costs.
ABC
Fully allocated costs
Average Days Receivable
Creditor
33. Amounts the organization is obligated to pay others - including suppliers and creditors.
Statement of cash flows
Program budget
Debt to equity
Accounts payable
34. Activities that provide guidance and feedback to keep the organization within its budget - such as staff meetings - regular reports - and bonuses.
Liquidity
Line of credit
Controlling activities
Volume diversity
35. One of the four major financial statements of a health care organization. It presents a summary of the organization's assets - liabilities - and net assets as of a certain date.
Accounts payable
Capital investment decisions
Balance sheet
Billing float
36. The category of assets summarizing the amount of the major capital investments of the facility in plant - property - and equipment (PP&E). Plant means buildings - property is land - and equipment includes a wide variety of durable items from beds to
Discount rate
Mail float
Current ratio
Properties and equipment
37. Previously restricted assets no longer restricted because the terms of the restriction have been met.
Non-operating ratio
Net assets released from restriction
Accumulated depreciation
Net assets to total assets
38. Policies and procedures that address when and how to collect revenues - such as paying at time of service - sending accounts to collection agencies - and writing off accounts as bad debt.
Collections policies and procedures
Direct costs
G & A expenses
Asset Management ratios
39. The process of adjusting for the time value of money backward in time to present value. See also Compounding.
Discounting
Activity ratios
Average Days Receivable
Operating cash flows
40. Proceeds lost by foregoing other opportunities.
Profitability ratios
Cost
Long-term financing
Opportunity cost
41. An entity that temporarily grants the use of money or an asset to another in return for compensation - usually in the form of interest.
Revenue enhancement
Donor
Lender
Investor
42. 1) The resources used to produce a good or service. 2) The amount of cash given up in a transaction. 3) Price. The first definition is based on accrual accounting and the second on cash accounting.
Comparative approach
Cost
ABC
Restricted donation
43. General and administrative expenses. Operating expenses that are not contained in the labor or supplies budgets.
G & A expenses
Current ratio
Expenses
Financing mix
44. [(cash + marketable securities)/current liabilities). A liquidity ratio that measures how much cash and marketable securities are available to payoff all current liabilities.
Non-regular cash flows
Cost Accounting
Donation
Acid test ratio
45. 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.
Capital budget
Budget
Leverage
Fixed labor budget
46. A category of income that includes unrestricted interest - dividends - and gains from the sale of unrestricted investments.
Income from investments
Liquidity ratios
Cost of goods sold
Capital appreciation
47. The section of the expense budget that forecasts the cost of those supplies that will not vary as a direct result of changes in the amount of services provided (such as administrative office supplies).
Cost of goods sold
Fixed supplies budget
Disbursement float
Opening inventory
48. The gradual process of paying off debt through a long series of equal periodic payments. Each payment covers a portion of the principal plus current interest. The periodic payments are equal over the lifetime of the loan - but the proportion going to
Return on total assets
Debt to equity
Fixed assets
Amortization of a loan
49. 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).
Average Days Inventory
Breakeven point
Beginning inventory
Activity ratios
50. 1) The returns that must be generated on a project to compensate the organization for its risk. 2) The returns the organization is foregoing by investing its money in one project as opposed to an alternative of similar risk. See also Cost of capital.
Discount rate
Budget
Collateral
Net assets released from restriction