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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. Properties and equipment less 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. Current year budget projected for the coming fiscal year assumes no program changes and adjust for price - workload - annualizations






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






5. 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.






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






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






8. {current liabilities/[(total expenses






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






10. 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.






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






12. The amount of inventory on hand at the beginning of an accounting period. See also Ending inventory.






13. An organization's financial obligations that are to be paid within one year.






14. Activity-based costing. A method to determine the costs of a service - product - or customer by tracing the resources consumed. ABC focuses on: I) controlling as well as calculating costs - 2) tracing as opposed to allocating costs - and 3) the impor






15. The ease and speed with which an asset can be turned into cash.






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






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






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






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






20. The purchase of assets with contributed and internally generated funds. See also Debt financing.






21. Time delays in the billing and collection process. There are four categories of float: billing - collection - transit - and disbursement. An organization's goal is to optimize float for incoming revenues and outgoing bills.






22. 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.






23. Proceeds lost by foregoing other opportunities.






24. The method of capital budgeting that compares the cash flows resulting from continuing with the existing alternative to those that would result if the equipment were replaced.






25. 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.






26. The elapsed time between financial statements. Common accounting periods






27. How an organization chooses to finance its working capital needs.






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






29. Capital investment decisions designed to increase the operational capability of a health care organization.






30. 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.






31. Monies received that have not yet been earned. One of the most common deferred revenues is the receipt of capitation on the basis of per member per month (PMPM).






32. Assets minus Liabilities. One of the three major categories on the balance sheet. Traditionally known as stockholders' equity in investor-owned organizations and fund balance in not-for-profit organizations. In not-for-profit health care organization






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






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






35. Bonds that have received a rating ranging from AM to BBB (at S&P) - or Aaa to Bbb (Moody's) - of which the highest are called quality ratings.






36. 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.






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






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






39. (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.






40. The difference between current assets and current liabilities.






41. A borrower's assets on which a lender has legal claim if a borrower defaults on a loan.






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






43. [Total Revenues/(Net Fixed Assets)]. This ratio measures the number of dollars generated for each dollar invested in an organization's fixed assets (i.e. plant and equipment).






44. Amounts the organization is obligated to pay others - including suppliers and creditors.






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






46. 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.






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






48. A security whose interest rate does not change during the lifetime of the bond.






49. 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.






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