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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. Portion of the profits the organization keeps in-house to use in support of its mission.






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






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






4. (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






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






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






7. 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.






8. [Net Accounts Receivable/(Revenue/356)]






9. Amounts due to the organization from patients - third parties - and others.






10. An organization's financial obligations that are to be paid within one year.






11. Private entity or individual who makes a donation






12. Any product - service - customer - contract - project - process or other work unit for which a separate cost measurement is desired.






13. Demonstrates the ability to pay off long term debt






14. Setting aside cash to meet unexpected demands - such as unexpected maintenance of a facility or piece of equipment.






15. Supplementing traditional sources of revenue with new sources.






16. An estimate/measure of how much a tangible asset (such as plant or equipment) has been "used up" during an accounting period. It is an expense that does not require any cash outflow under the accrual basis of accounting. See also Accumulated deprecia






17. [(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






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






19. A donation that has conditions which must be satisfied. See also Temporarily restricted net assets.






20. 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






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






22. Series of payments over time - such as interest paid to bondholders.






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






24. Cash inflows and outflows for the organization resulting from investing activities such as purchasing and selling investments or investing in itself by purchasing or selling non-current assets. It also includes transfers to and from the parent corpor






25. Financial obligations that will be paid off over a time period longer than one year






26. Responsibility centers responsible for making a certain return on investments.






27. A catchall category for miscellaneous expenses and losses not included in other categories (telephone - travel - meals - etc.).






28. The bottom area of the financial statements that contains key information not available in the body of the statements - such as how charity is determined - the composition of investments - which assets are restricted - and the depreciation method.






29. Organizational units responsible for providing services and controlling their costs. There are two major types: clinical cost centers and administrative cost centers.






30. Costs not traced to a cost object - but that must eventually be allocated across cost objects. See also Direct costs.






31. I) Organizations that have a special designation because they provide goods or services that result in needed community benefit. In turn - such organizations are not required to pay most taxes. 2) The designation of an organization as one that is not






32. Organizational units primarily responsible for providing services and earning a profit based on the health care services provided.






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






34. An entity that owns other companies.






35. Organizational unit given the responsibility to carry out one or more tasks and/or achieve one or more outcomes.






36. Amounts the organization is obligated to pay others - including suppliers and creditors.






37. 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.






38. The budget used to forecast operating expenses.






39. Budgets that typically cover two to five years.






40. Non-operating income.






41. An entity that gives capital to another entity in expectation of a financial or non-financial return.






42. The section of the expense budget that forecasts salary and benefits.






43. Costs (such as rent - administration - insurance - etc. that are shared by a number of services or departments and cannot easily be broken down to the services attributable to each (surgery - emergency medicine - etc.). Also called joint costs.






44. The purchase of assets with contributed and internally generated funds. See also Debt financing.






45. 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.






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






47. The income (operating revenues -operating expenses) earned in non-health-care related activities.






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






49. An approach to analyzing the financial condition of an organization based on ratios calculated from line items found in the financial statements. There are four major categories of ratios: liquidity - profitability - capitalization - and activity.






50. A statistic used to allocate costs from a cost center based on a cause and effect relationship. For example - a common allocation base to allocate the costs of maintaining medical records is number of visits. See also Cost driver.