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ACCA Financial Management

Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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 amount expected to be collected from payors. It is calculated as: gross accounts receivable – discounts and allowances – allowance for un-collectibles.






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






3. The elapsed time between when the patient or third-party payor sends the payment and the time the health care provider receives the payment.






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






5. An entity that temporarily grants the use of money or an asset to another in return for compensation - usually in the form of interest.






6. 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






7. 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.






8. Debt to be paid off in a period longer than one year.






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






10. 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






11. Stated interest rate on a bond - as promised by the issuer.






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






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






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






15. Organizational units primarily responsible for ensuring that services are provided to a population in a manner that meets the volume and quality requirements of the organization. Service centers are the most basic type of responsibility centers.






16. The method by which to distribute service center costs to mission centers; in general the one that most accurately measures use by the cost centers that receives its services (food service - # of meals - hospital laundry - # of pounds processed)






17. 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).






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






19. The income (operating revenues -operating expenses) earned in non-health-care related activities.






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






21. One of the four major financial statements. It explains the changes in net assets from one period to the next on the balance sheet. Also called statement of changes in owners' equity in a for-profit business.






22. Bonds that hold the health care provider's real property and equipment as security or collateral in case of default.






23. 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.






24. 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






25. Assets that have a physical presence.






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






27. Financing used expressly for the purchase of non-current assets.






28. [Total assets/Net Assets]






29. The system of accounting that recognizes revenues when earned and expenses when resources are used. This method is used by most non-governmental health care organizations. See also Cash basis of accounting.






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






31. [Surplus/Operating Revenues]






32. {[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).






33. An entity that owns other companies.






34. Price times total quantity.






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






36. 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?






37. 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






38. [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






39. Revenues generated from an organization's operating activities.






40. 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.






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






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






43. A series of equal cash flows made or received at regular time intervals. Ordinary annuities occur at the end of each period whereas annuities due occur at the beginning of each period.






44. (excess of revenues over expenses/net assets)- In not-for-profit health care organizations - it measures the rate of return for each dollar in net assets. In for-profit organizations - it measures the rate of return for each dollar in owners' equity;






45. 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.






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






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






48. [Inventory/ (Cost of Goods Sold/365)]






49. 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.






50. Organizational units responsible for providing services and controlling their costs. There are two major types: clinical cost centers and administrative cost centers.







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