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






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






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






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.






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






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.






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






8. Demonstrates the extent to which the organization is earning money from its assets. Not usually as imp for NPs - varies w/ NP.






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






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






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.






12. [Surplus/Operating Revenues]






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






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






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.






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






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.






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






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.






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






21. Non-operating 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.






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






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






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






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.






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






28. The budget that forecasts the operating and - in some cases - the non- operating revenues that will be earned during the budget period.






29. Each service center






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






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






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






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






34. Activities that provide guidance and feedback to keep the organization within its budget - such as staff meetings - regular reports - and bonuses.






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.






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






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






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.






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






40. Proceeds lost by foregoing other opportunities.






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.






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.






43. General and administrative expenses. Operating expenses that are not contained in the labor or supplies budgets.






44. [(cash + marketable securities)/current liabilities). A liquidity ratio that measures how much cash and marketable securities are available to payoff all current liabilities.






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.






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






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).






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






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).






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.