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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. Literally non-movable assets. Generally used to refer to buildings and equipment.






2. Requiring the patient to pay part of his/her health care bill. These payments are used to prevent over-utilization of services.






3. 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.






4. 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.






5. 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






6. Price times total quantity.






7. Market value. The price at which something - such as bonds and stocks - could be bought or sold today on the open market.






8. [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






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






10. Funds provided by a private entity or individual without the requirement of repayment. Donations can either be restricted or unrestricted.






11. Full-time equivalent employees. Two half-time employees equal one FTE.






12. An organization whose profits can be distributed outside the organization and must pay taxes. Also called investor-owned organizations.






13. [Net Assets/Total Assets]. This ratio reflects the proportion of total assets financed by equity.






14. If a project is undertaken - these cash flows are the indirect increases or decreases in cash flows that will occur elsewhere in the organization.






15. The amount of the total revenue variance that occurs because the actual average rate charged varies from that originally budgeted. It can be calculated using the formula: (actual rate -budgeted rate) x actual volume.






16. process of measuring the resources (costs) used to produce results.






17. 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.






18. 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.






19. A category of income that includes unrestricted interest - dividends - and gains from the sale of unrestricted investments.






20. [Total Revenues/(Net Fixed Assets)]. This ratio measures the number of dollars generated for each dollar invested in an organization's fixed assets (i.e. plant and equipment).






21. A certificate attached to a bond representing the amount of interest to be paid to the holder.






22. A situation in which if one project is implemented the other(s) will not be.






23. Ratios that answer the question: How well is the organization positioned to meet its short-term obligations?






24. The planning process that identifies the organization's mission and strategy in order to position itself for the future.






25. I) Measuring inputs against outputs. 2) The cost of service per unit rendered.






26. 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.






27. Capital investment decisions designed to increase the operational capability of a health care organization.






28. The costs of a service after taking into account its direct and fair share of allocated costs.






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






30. [Total Liabilities/ Net assets]






31. 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.






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






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






34. Non-operating income.






35. 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.






36. The revenue and expense budgets of an organization.






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






38. The cost of the supplies on hand at the beginning of the year.






39. The amount remaining after subtracting variable costs from revenues. When the organization is not at capacity - it is the "profit" the organization makes on providing each new unit that is available to cover all other costs. Contribution margin may b






40. The budget used to forecast - and in some cases justify - the expenditures (and in some cases the sources of financing) for non-current assets.






41. Costs that are traced to a cost object. See also Indirect costs and Cost object.






42. [Total assets/Net Assets]






43. A good or service provided in return for some type of compensation.






44. 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.






45. The current traded rate for similar risk securities.






46. The ease and speed with which an asset can be turned into cash.






47. The resources owned by the organization. It is one of the three major categories on the balance sheet.






48. Each service center






49. An amount owed to the organization that will not be paid. Charity care is not considered a bad debt since nothing is owed to the organization for services provided.






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