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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. The budget used to forecast operating expenses.






2. 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






3. Each service center






4. The idea that a dollar today is worth more than a dollar in the future.






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






6. Amounts earned by the organization from the provision of service or sale of goods.






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. A measure of the income earned from operating activities. It is calculated as: unrestricted revenues - gains - and other support -expenses and losses.






9. 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






10. [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?






11. The amount of supplies used to provide a service or good.






12. Financing that will be paid back in less than one year.






13. 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.






14. 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






15. Traces indirect costs to activity that uses them. Overhead collected in pools and distributed to cost object by cost drivers.






16. 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






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






18. (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.






19. 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.






20. 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.






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






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






23. The percentage of each asset relative to total assets.






24. The absence of risk in an investment.






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






26. {current liabilities/[(total expenses






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






28. Assets = Liabilities + Net Assets (aka Equity).






29. 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.






30. 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.






31. The time between the issuance of the bill and the time funds are available for use by the health care organization. It has two components: mail float and processing float.






32. The amount expected to be collected from payors. It is calculated as: gross accounts receivable – discounts and allowances – allowance for un-collectibles.






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






34. 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.






35. 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.






36. A method by which the organization develops its strategies and budgets to meet future financial targets.






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






38. A balance sheet account that estimates the total amount of customer accounts receivable that will not be collected. It is also called allowance for bad debts and allowance for doubtful accounts.






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






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






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






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






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






44. 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






45. Demonstrates the ability to pay off long term debt






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






47. 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






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






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






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