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Test your basic knowledge |
ACCA Financial Management
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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. Organizational units responsible for providing health care related services to clients - patients - or enrollees - and the related costs thereof.
Clinical cost centers
Quick ratio
Operating activities
Coupon payment
2. What a series of equal payments in the future is worth today taking into account the time value of money.
Capital investment decisions
Present value of an annuity
Capital
Accumulated depreciation
3. Assets = Liabilities + Net Assets (aka Equity).
Breakeven point
Basic accounting equation
Balance sheet
Asset Management ratios
4. An organization's financial obligations that are to be paid within one year.
Current liabilities
Net Assets
Inflation
Statement of cash flows
5. 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.
Comparative approach
Donor
Long-term debt - net of current portion
Operating activities
6. A catchall category for miscellaneous expenses and losses not included in other categories (telephone - travel - meals - etc.).
Billing - collections - and disbursement policies and procedures
Long-term debt - net of current portion
Other expenses
Spillover cash flows
7. The purchase of assets with contributed and internally generated funds. See also Debt financing.
Non-operating income
Restricted donation
Equity financing
Capital assets
8. Revenues generated from an organization's operating activities.
Billing - collections - and disbursement policies and procedures
Operating revenues
Total revenue
Fully allocated costs
9. An entity that temporarily grants the use of money or an asset to another in return for compensation - usually in the form of interest.
Net working capital
Lender
Income from investments
Non-operating revenues
10. Ratios that answer the question: How well is the organization positioned to meet its short-term obligations?
Effectiveness
Direct costs
Cost
Liquidity ratios
11. 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.
Operating revenues
FTE
Donor
Centralization
12. 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.
Capital assets
Present value of an annuity
Float
Accumulated depreciation
13. A contract in which the lessee (user) agrees to pay the leassor (owner) a specific amount over a period of time for the use of an asset.
Allocation base
Net assets released from restriction
Cost of goods sold
Lease
14. Financing that will be paid back in less than one year.
FTE
Present value of an annuity
Budget
Short-term financing
15. An assignment or grading of the likelihood that an organization will not default on a bond.
Coupon payment
Comparative approach
Bond rating
Revenue budget
16. I) Calculating interest using the compound interest method. 2) Adjusting for the time value of money forward in time to a future value. See also Compound interest method and Discounting.
Tangible assets
Working capital
Compounding
Contribution margin
17. A section of the statement of cash flows used to report such activities as borrowing and paying back loans.
Accrual basis of accounting
Accountability
MV
Financing activities
18. 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
Mission Center
Fixed Asset Turnover
Depreciation
ROI
19. An investment that generates an annuity for an indefinite period of time - basically forever.
Other revenues
Cost centers
Perpetuity
Float
20. 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
ABC
ROI
Realization principle
Long-term financing
21. 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.
Increase in unrestricted net assets
Hedge
Coupon rate
Step-down method
22. The expenses incurred from an organization's operating activities.
Bonds
Centralization
Net Assets to Total Assets
Operating expenses
23. Ratios that measure how the organization's assets are financed and/or whether the organization can take on new debt.
Capital structure ratios
Return on total assets
Fixed costs
Issuer
24. An entity that sells bonds in order to raise money.
Days cash on hand
Lease
Issuer
Cost Accounting
25. 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.
Common costs
Return on total assets
Days cash on hand
Cash flows from financing activities
26. The cost of a capital asset (i.e. building or equipment) minus accumulated depreciation.
Long-term debt to net assets ratio
Book value
Net Assets
Current assets
27. The cash flows derived from an organization's operating activities.
Inflation
Annuity
Operating cash flows
Horizontal analysis
28. Capital investment decisions designed to increase the operational capability of a health care organization.
Asset mix
Intermediate Cost Object
Matching principle
Expansion decisions
29. 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.
Annuity
Coupon rate
Operating activities
Fixed labor budget
30. Financial and non-financial standards against which organizational performance is measured.
Budget
Non-operating ratio
Performance measure
Bond rating agency
31. Operating income not reported elsewhere under revenues - gains - and other support.
Other revenues
Cash equivalents
Net Assets to Total Assets
Time value of money
32. The cost of the supplies on hand at the beginning of the year.
Long Term Solvency ratios
Opening inventory
Non-operating income
Net Assets to Total Assets
33. [Net Assets/Total Assets]. This ratio reflects the proportion of total assets financed by equity.
Net Assets to Total Assets
Net increase (decrease) in cash and cash equivalents
Discounting
Statement of cash flows
34. [Total assets/Net Assets]
Asset Turnover Ratio
Leverage
Transaction
HMO
35. 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.
Budget
Revenue rate variance
Liabilities
Volume diversity
36. [total revenues/net plant & equipment]- This ratio measures the number of dollars generated for each dollar invested in an organization's plant and equipment.
Accounting period
Fixed asset turnover
Financing mix
Dividends
37. [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?
Centralization
Total asset turnover
Current assets
Investor
38. 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.
Mission statement
Certainty
Other support
Operating margin
39. Private entity or individual who makes a donation
Donor
Cost
Profitability ratios
Long-term investments
40. Organizational units responsible for their own costs that provide administrative support to other organizational units or the organization
Fixed asset turnover
Loan amortization schedule
Administrative cost centers
Horizontal analysis
41. 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
Long-term debt - net of current portion
Matching principle
HMO
Quick ratio
42. Donated assets that have restrictions on their use which will never be removed.
Prepaid assets
Collection float
Permanently restricted net assets
Non-operating ratio
43. A measure of the income earned from operating activities. It is calculated as: unrestricted revenues - gains - and other support -expenses and losses.
Operating income
Step-down method
Direct costs
Retained earnings
44. Opposite of the authoritarian approach. The roles and responsibilities of the budgeting process are diffused throughout the organization. Often called the participatory approach.
Top-down/bottom-up approach
Net Assets to Total Assets
Capital investment decisions
Allowance for uncollectibles
45. The amount of inventory on hand at the end of an accounting period. See also Beginning inventory.
Operating revenues
Ending inventory
Profitability ratios
Fixed labor budget
46. A measure of the resources used to generate revenue and/or provide a service. Often used synonymously with costs. See also Costs.
Financing activities
Expenses
Billing - collections - and disbursement policies and procedures
Cash flows from operating activities
47. 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.
Revenue rate variance
Transaction
Collections policies and procedures
Mission statement
48. General and administrative expenses. Operating expenses that are not contained in the labor or supplies budgets.
Coupon rate
Assets
G & A expenses
Footnotes
49. An entity that is owed money for lending funds or supplying goods or services on credit.
Net proceeds from a bond issuance
Parent organization
Creditor
Asset mix
50. Requiring the patient to pay part of his/her health care bill. These payments are used to prevent over-utilization of services.
Net increase (decrease) in cash and cash equivalents
Co-payments
Line-item budget
Expense budget