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






2. 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.






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






4. Portion of profit an organization distributes to investors. By law - only investor-owned health care organizations can distribute dividends outside the organization.






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






6. The section of the statement of cash flows that reports the total change in cash and cash equivalents over the accounting period.






7. If a project is undertaken - these cash flows are the indirect increases or decreases in cash flows that will occur elsewhere in the organization.






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






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






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






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






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






13. 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.






14. [Net Accounts Receivable/(Revenue/356)]






15. 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.






16. Cash flows that occur solely as a result of undertaking a project. Basically the marginal difference between alternatives.






17. 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.






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






19. Price times total quantity.






20. Generally - assets that will be used or consumed within one year. Some organizations use a period of less than one year.






21. The amount of time between when an organization receives a service and pays for it.






22. Ratios that answer the question: How well is the organization positioned to meet its short-term obligations?






23. Costs that stay the same in total over the relevant range as volume increases - but that change inversely on a per unit basis.






24. 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).






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






26. The process of distributing service center costs to mission centers - to determine the full cost of each mission center






27. The degree of dispersion of responsibility within an organization. See also Centralization.






28. 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






29. Setting aside cash to meet unexpected demands - such as unexpected maintenance of a facility or piece of equipment.






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






31. Costs (such as rent - administration - insurance - etc. that are shared by a number of services or departments and cannot easily be broken down to the services attributable to each (surgery - emergency medicine - etc.). Also called joint costs.






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






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






34. Looks at the percentage change in a line item's value from one year to the next using the formula: [(subsequent year -base year)/base year) x 100. See also Vertical analysis.






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






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






37. The sources of funds to finance the non-current assets of the organization. Also the debt and equity of the organization.






38. Capital investment decisions designed to increase an organization's strategic position.






39. 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.






40. An entity that is owed money for lending funds or supplying goods or services on credit.






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






42. [(actual cost per unit -budgeted cost per unit) x actual volume).- The difference between the variable expenses that would have been expected at the actual volume and those actually incurred.






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






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






45. The budget used to forecast operating expenses.






46. The system of accounting that recognizes revenues when cash is received and expenses when cash is paid out. See also Accrual basis of accounting.






47. An entity that owns other companies.






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






49. 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






50. Supplementing traditional sources of revenue with new sources.