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. The planning process that identifies the organization's mission and strategy in order to position itself for the future.
Strategic planning
Coupon
G & A expenses
Other income
2. The total amount of multiyear debt due in future years.
Long-term investments
Budget variance
Long-term debt - net of current portion
Working capital
3. Assets that provide service for a period exceeding one year. Sometimes referred to as long-term assets.
Fixed labor budget
Compounding
Restricted donation
Non-current assets
4. Ratios that measure how the organization's assets are financed and/or whether the organization can take on new debt.
Step-down method
Capital structure ratios
ABC
Decentralization
5. The bottom line in the statement of operations. It includes such items as operating and non-operating income - contributions of long-lived assets - transfers to parent - and extraordinary items.
Asset Management ratios
Increase in unrestricted net assets
Lender
Float
6. An entity that owns other companies.
Parent organization
Statement of changes in net assets
Multiyear budget
Cost of goods sold
7. A statement intended to guide the organization into the future by identifying the unique attributes of the organization - why it exists - and what it hopes to achieve.
Final cost object
Mission statement
Current assets
Non-current assets
8. The difference between the initial amount paid for an investment and the related future cash inflows after they have been adjusted (discounted) by the cost of capital.
Net Assets to Total Assets
FV
Net present value
Incremental cash flows
9. The amount of inventory on hand at the end of an accounting period. See also Beginning inventory.
Market rate of interest
Ending inventory
Profit margin
Activity ratios
10. An assignment or grading of the likelihood that an organization will not default on a bond.
Program budget
Bond rating
Lien
Parent organization
11. Donated assets that have restrictions on their use which will never be removed.
Footnotes
Net patient service revenue
HMO
Permanently restricted net assets
12. [(cash + marketable securities)/current liabilities). A liquidity ratio that measures how much cash and marketable securities are available to payoff all current liabilities.
Loan amortization schedule
Total revenue
Operating activities
Acid test ratio
13. Internal rate of return. The percentage return on an investment. It is the rate of return at which the net present value equals zero. Often used as a comparison to cost of capital.
IRR
Matching principle
For-profit
Net accounts receivable
14. Organizational units responsible for providing services and controlling their costs. There are two major types: clinical cost centers and administrative cost centers.
MV
Cost centers
Line of credit
Expense volume variance
15. 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.
Discount rate
Mission statement
Net increase (decrease) in cash and cash equivalents
Not-for-profit
16. Amounts given to the organization for operating purposes - such as governmental appropriations and unrestricted donations.
Transaction
Income from investments
Other support
Intermediate Cost Object
17. A measure of the income earned from operating activities. It is calculated as: unrestricted revenues - gains - and other support -expenses and losses.
Operating income
Interest
Liquidity ratios
Transaction
18. A borrower's assets on which a lender has legal claim if a borrower defaults on a loan.
Direct costs
Collateral
Responsibility center
Investment centers
19. 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.
Profit margin
Non-current liabilities
Non-operating revenues
Allowance for uncollectibles
20. [Total Liabilities/ Net assets]
Debt to equity
Capital appreciation
Service centers
Coupon
21. 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
Breakeven point
Net Assets to Total Assets
Statement of operations
Statement of cash flows
22. 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.
Traditional profit centers
Accumulated depreciation
Expense budget
Revenue rate variance
23. The amount expected to be collected from payors. It is calculated as: gross accounts receivable – discounts and allowances – allowance for un-collectibles.
Traditional profit centers
Net accounts receivable
Perpetuity
Balance sheet
24. Return on investment. The percentage gain or loss experienced from an investment.
Long-term financing
IRR
ROI
Donor
25. Demonstrates the extent to which the organization is earning money from its assets. Not usually as imp for NPs - varies w/ NP.
Asset Management ratios
Lease
Accountability
Cash basis of accounting
26. The degree to which standards are met.
Accounts payable
Cash budget
Effectiveness
Net accounts receivable
27. Market value. The price at which something - such as bonds and stocks - could be bought or sold today on the open market.
MV
Long-term debt to net assets ratio
Restricted donation
Single/Simple Step
28. Service center costs are allocated to both mission centers and other service centers
Step Down
Efficiency
Prepaid assets
Investor
29. Current year budget projected for the coming fiscal year assumes no program changes and adjust for price - workload - annualizations
Controlling activities
Acid test ratio
Base Budget
Non-operating expenses
30. Ratios that answer the question: How well is the organization positioned to meet its short-term obligations?
Long-term debt to net assets ratio
Statement of operations
Bonds
Liquidity ratios
31. 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.
Coupon payment
Average payment period
Collateral
Capital financing
32. The section of the expense budget that forecasts salary and benefits.
FTE
Fixed labor budget
Cash flows from operating activities
Revenue budget
33. The rate of return required to undertake a project. Also called the hurdle rate or discount rate.
Strategic planning
Cost of capital
IRR
Dividends
34. 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.
Capital appreciation
Income from investments
Program budget
Administrative profit centers
35. 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
Accrual basis of accounting
Parent organization
Spillover cash flows
36. The amount of inventory on hand at the beginning of an accounting period. See also Ending inventory.
Beginning inventory
Operating cash flows
Disbursement float
Strategic planning
37. 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.
Line-item budget
Float
Non-operating income
Product diversity
38. 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.
Deferred revenues
Accounting period
Operating budget
Step-down method
39. Generally - assets that will be used or consumed within one year. Some organizations use a period of less than one year.
Investment grade
Budget
Prepaid assets
Current assets
40. A transaction that reduces the risk of an investment.
Compounding
Hedge
Expenses
Increase in unrestricted net assets
41. The absence of risk in an investment.
Top-down budgeting
Billing - collections - and disbursement policies and procedures
Cost Accounting
Certainty
42. A form of long-term financing whereby the issuer receives cash and in return issues a note called a bond. By issuing the bond - the issuer agrees to make principal and/or interest payments on specific dates to the holders of the bond.
Service centers
Bonds
Net assets released from restriction
Non-operating ratio
43. Assets that have restrictions on their use which will be removed either with the passage of time or the occurrence of some event.
Temporarily restricted net assets
Issuer
Operating budget
Liquidity
44. Series of payments over time - such as interest paid to bondholders.
Working capital
Periodic payments
Discounted cash flows
Book value
45. A measure of the resources used to generate revenue and/or provide a service. Often used synonymously with costs. See also Costs.
Expense cost variance
Present value of an annuity
Expenses
Fixed assets
46. General and administrative expenses. Operating expenses that are not contained in the labor or supplies budgets.
G & A expenses
Lease
Mutually exclusive projects
Tangible assets
47. 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.
Beginning inventory
Bonds
Collection float
Horizontal analysis
48. {current liabilities/[(total expenses
IRR
Revenue rate variance
Average payment period
Strategic planning
49. 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.
Cash basis of accounting
Long-term financing
Amortization of a loan
Balance sheet
50. Cash inflows and outflows resulting from financing activities - such as obtaining grants or endowments - or from borrowing or paying back long-term debt.
Net Assets to Total Assets
Cash flows from financing activities
Cash flows from investing activities
Financing mix