SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
ACCA Financial Management
Start Test
Study First
Subjects
:
certifications
,
business-skills
,
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. Organizational units responsible for providing services and controlling their costs. There are two major types: clinical cost centers and administrative cost centers.
Cost centers
Cost of goods sold
Statement of cash flows
Administrative profit centers
2. Each service center
Single/Simple Step
Expansion decisions
Line-item budget
Days cash on hand
3. Organizational units primarily responsible for providing services and earning a profit based on the health care services provided.
Collateral
Revenue budget
Other revenues
Traditional profit centers
4. 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.
Other income
For-profit
Ratio analysis
Performance measure
5. (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.
Parent organization
Net proceeds from a bond issuance
Assets
Return on total assets
6. A transaction that reduces the risk of an investment.
Capital
Cost avoidance
Net Assets
Hedge
7. 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.
Allocation base
Cash and cash equivalents
Capital assets
Program budget
8. The amount of inventory on hand at the end of an accounting period. See also Beginning inventory.
Inflation
Ending inventory
HMO
Cash equivalents
9. Gross proceeds less the underwriter's fee and other issuance fees.
Net accounts receivable
Statement of cash flows
Net proceeds from a bond issuance
Loan amortization schedule
10. The changes in cash resulting from the normal operating activities of the organization.
Long-term investments
Equity financing
Cash budget
Cash flows from operating activities
11. A security whose interest rate does not change during the lifetime of the bond.
Debt service coverage
Expense budget
Fixed (interest) rate debt
Budget variance
12. The cost of the supplies on hand at the beginning of the year.
Mission Center
Common costs
Opening inventory
Revenue rate variance
13. Non-operating income.
Fixed supplies budget
Other income
Discount rate
Certainty
14. Requiring the patient to pay part of his/her health care bill. These payments are used to prevent over-utilization of services.
Base Budget
Co-payments
Ending inventory
Cash flows from operating activities
15. {[cash + marketable securities)/[(operating expenses -depreciation)/ 365].- A ratio that indicates the number of days' worth of expenses an organization can cover with its most liquid assets (cash and marketable securities).
Mortgage bonds
Retained earnings
Days cash on hand
Breakeven point
16. A schedule detailing the principal and interest payments required to repay a loan. Typically - the periodic payments remain unchanged - but the proportion used to payoff the principal increases over time.
Loan amortization schedule
Cash flows from investing activities
Collections policies and procedures
Investment grade
17. The cash flows derived from an organization's operating activities.
Capital structure decision
Operating cash flows
Capital assets
ABC
18. [Net Assets/Total Assets]. This ratio reflects the proportion of total assets financed by equity.
ROI
Tax-exempt bonds
Net Assets to Total Assets
Cash basis of accounting
19. The amount expected to be collected from payors. It is calculated as: gross accounts receivable – discounts and allowances – allowance for un-collectibles.
Long-term investments
Debt to equity
Net accounts receivable
Product diversity
20. Current year budget projected for the coming fiscal year assumes no program changes and adjust for price - workload - annualizations
Average Days Receivable
Base Budget
Discount rate
Liabilities
21. A note payable that has as collateral real assets and that requires periodic payments.
Strategic financial planning
Operating income
Mortgage
Spillover cash flows
22. An investment that generates an annuity for an indefinite period of time - basically forever.
Bond rating agency
Perpetuity
Mail float
Accumulated depreciation
23. The total amount of multiyear debt due in future years.
Other expenses
Financing activities
Breakeven point
Long-term debt - net of current portion
24. A borrower's assets on which a lender has legal claim if a borrower defaults on a loan.
Short-term financing
Debt to equity
Collateral
Revenue enhancement
25. The percentage of each asset relative to total assets.
Asset mix
Cash equivalents
Revenues
Debt to equity
26. (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
Liquidity ratios
Tax-exempt bonds
Long-term investments
Lien
27. 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.
Payback
Collections policies and procedures
Non-current assets
Mutually exclusive projects
28. Assets that have a physical presence.
MV
Retained earnings
Tangible assets
Ratio analysis
29. A category of income that includes unrestricted interest - dividends - and gains from the sale of unrestricted investments.
Ratio analysis
Income from investments
Cost avoidance
Long-term investments
30. Full-time equivalent employees. Two half-time employees equal one FTE.
SWOT analysis
Fixed asset turnover
Indirect costs
FTE
31. How an organization chooses to finance its working capital needs.
Coupon rate
Incremental cash flows
Comparative approach
Financing mix
32. The current traded rate for similar risk securities.
Market rate of interest
Short-term financing
Fixed Asset Turnover
Non-operating income
33. A budget in which line items are presented by program.
Times interest earned
Program budget
Bad debt
Certainty
34. The increase in the value of an investment from the time it is purchased until the time it is sold.
Capital appreciation
Annuity
Breakeven point
Net patient service revenue
35. Ratios that measure how efficiently an organization is using its assets to produce revenues.
Decentralization
Spillover cash flows
Co-payments
Activity ratios
36. Expenses that have been incurred - but not yet paid.
Tax-exempt bonds
Accrued expenses
Days cash on hand
MV
37. 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).
Realization principle
Fixed labor budget
Fixed supplies budget
Collateral
38. The budget format that lists revenues and expenses by category - such as labor - travel - and supplies. Categories are sometimes broken down into sub-categories. See also Performance budget and Program budget.
Line-item budget
Deferred revenues
Lease
Profitability ratios
39. Any product - service - customer - contract - project - process or other work unit for which a separate cost measurement is desired.
Cost object
Net working capital
Not-for-profit
Matching principle
40. Stated interest rate on a bond - as promised by the issuer.
Traditional profit centers
Days cash on hand
Matching principle
Coupon rate
41. When products are manufactured in batches in different sizes - and overhead activities are affected by the size of the batch being produced
Revenues
Current assets
Volume diversity
Days cash on hand
42. [total revenues/total assets].- This ratio measures the overall efficiency of the organization's assets to produce revenue. It answers the question: For every dollar in assets - how many dollars of revenue are being generated?
Operating income
Cash flows from investing activities
Total asset turnover
Average payment period
43. [net assets/total assets)- This ratio reflects the proportion of total assets financed by equity. In for-profit organizations it is called the equity to total asset ratio and is calculated using the formula [owners' equity/total assets).
Issuer
Compounding
Net assets to total assets
Financing mix
44. A technique to evaluate an organization's strengths - weaknesses - opportunities - and threats. Also called a WOTS-up analysis.
Step Down
Interest
IRR
SWOT analysis
45. The resources owned by the organization. It is one of the three major categories on the balance sheet.
Liabilities
Bad debt
Statement of changes in net assets
Assets
46. Proceeds lost by foregoing other opportunities.
Opportunity cost
Efficiency
Time value of money
Collateral
47. Funds provided by a private entity or individual without the requirement of repayment. Donations can either be restricted or unrestricted.
Working capital
Statement of operations
Administrative cost centers
Donation
48. 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
Cash flows from investing activities
Expansion decisions
Opportunity cost
Operating revenues
49. An entity that is owed money for lending funds or supplying goods or services on credit.
Responsibility center
Net proceeds from a bond issuance
Cost object
Creditor
50. A section of the statement of cash flows used to report such activities as borrowing and paying back loans.
ROI
Capital budget
Financing activities
Dividends