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. 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






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






3. Being subject to sanctions with respect to carrying out responsibilities.






4. 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?






5. Service center costs are allocated to both mission centers and other service centers






6. A security whose interest rate does not change during the lifetime of the bond.






7. Financial and non-financial standards against which organizational performance is measured.






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






9. {current liabilities/[(total expenses






10. Looks at the percentage change in a line item's value from one year to the next using the formula: [(subsequent year -base year)/base year) x 100. See also Vertical analysis.






11. The revenue and expense budgets of an organization.






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






13. Recording expenses associated with making revenue at the same time as revenues are recognized






14. Generally - assets that will be used or consumed within one year. Some organizations use a period of less than one year.






15. 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.






16. A benefit paid for in advance (rent - insurance - etc.). Also called prepaid expense.






17. Gross proceeds less the underwriter's fee and other issuance fees.






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






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






20. (non-operating revenues/total operating revenues)- A ratio that reflects how dependent the organization is on non-patient care related net income.






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






22. When different products use overhead related services in different proportions - and when the costs of those services are significantly different - The situation present when products consume overhead in different proportions.






23. Previously restricted assets no longer restricted because the terms of the restriction have been met.






24. [Total Revenues/ Total Assets]






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






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






27. Assets that have a useful life greater than one year - such as plant - property - and equipment. Plant and equipment are depreciated over time; land (property) is not.






28. Each service center






29. A borrower's assets on which a lender has legal claim if a borrower defaults on a loan.






30. Donated assets that have restrictions on their use which will never be removed.






31. 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






32. Future value. What an amount invested today (or a series of payments made over time) will be worth at a given time in the future using the compound interest method. This accounts for the time value of money. See also Present value.






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






34. Portion of profit an organization distributes to investors. By law - only investor-owned health care organizations can distribute dividends outside the organization.






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






36. What a series of equal payments in the future is worth today taking into account the time value of money.






37. A security interest in one or more assets granted to lenders in a secured loan.






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






39. The expenses incurred from an organization's operating activities.






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






41. The absence of risk in an investment.






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






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






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.






45. 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.






46. 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.






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






48. Price times total quantity.






49. 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






50. The revenue that the organization has a right to collect. It is computed as: gross patient service revenues – contractual allowance and charity care.






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