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ACCA Financial Management
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Study First
Subjects
:
certifications
,
business-skills
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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 budget used to forecast operating expenses.
Coupon
Expense budget
Time value of money
Transaction
2. That process of budgeting where the environmental assessment and planning of future activities are largely decided upon by a few individuals - and the budget is essentially dictated to the rest of the organization. Often called authoritarian approach
Spillover cash flows
Statement of changes in net assets
Top-down budgeting
Mutually exclusive projects
3. Each service center
Breakeven point
Other support
Single/Simple Step
Accountability
4. The idea that a dollar today is worth more than a dollar in the future.
Time value of money
Volume diversity
Other income
Collections policies and procedures
5. Any product - service - customer - contract - project - process or other work unit for which a separate cost measurement is desired.
Precautionary purposes
Balance sheet
Program budget
Cost object
6. Amounts earned by the organization from the provision of service or sale of goods.
Fixed costs
Average Days Receivable
Revenues
Mission Center
7. 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.
Prepaid assets
Capital
Dividends
Administrative profit centers
8. A measure of the income earned from operating activities. It is calculated as: unrestricted revenues - gains - and other support -expenses and losses.
Capital assets
Line of credit
Operating income
Present value of an annuity
9. 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
Depreciation
Ratio analysis
Equity financing
Mortgage
10. [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?
Total asset turnover
Hedge
Investor
Coupon
11. The amount of supplies used to provide a service or good.
Cost of goods sold
Opportunity cost
Lien
Accountability
12. Financing that will be paid back in less than one year.
Statement of changes in net assets
Basis of Allocation
Short-term financing
Loan amortization schedule
13. 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.
Return on total assets
Final cost object
Collection float
Ratio analysis
14. 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
Cash flows from investing activities
Revenue budget
Equity financing
Fixed assets
15. Traces indirect costs to activity that uses them. Overhead collected in pools and distributed to cost object by cost drivers.
Cash basis of accounting
Activity Based Costing
Net accounts receivable
Revenue budget
16. I) Organizations that have a special designation because they provide goods or services that result in needed community benefit. In turn - such organizations are not required to pay most taxes. 2) The designation of an organization as one that is not
Step Down
Not-for-profit
Accounting period
Disbursement float
17. What a series of equal payments in the future is worth today taking into account the time value of money.
Leverage
Present value of an annuity
Times interest earned
Non-current liabilities
18. (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.
Loan amortization schedule
FTE
Average Days Inventory
Return on total assets
19. 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.
Long-term investments
Cost avoidance
Balance sheet
Performance measure
20. An amount owed to the organization that will not be paid. Charity care is not considered a bad debt since nothing is owed to the organization for services provided.
Bad debt
Annuity
Inflation
Bonds
21. The budget used to forecast - and in some cases justify - the expenditures (and in some cases the sources of financing) for non-current assets.
Step-down method
Mission statement
Financing mix
Capital budget
22. The rise in an economy's general level of prices.
Profitability ratios
Inflation
Responsibility center
Compounding
23. The percentage of each asset relative to total assets.
Traditional profit centers
FV
Asset mix
Fixed supplies budget
24. The absence of risk in an investment.
Step-down method
Certainty
Traditional profit centers
Non-current liabilities
25. Full-time equivalent employees. Two half-time employees equal one FTE.
Performance budget
FTE
Mission Center
Cash basis of accounting
26. {current liabilities/[(total expenses
Cost of goods sold
Quick ratio
Average payment period
Cash flows from investing activities
27. Donated assets that have restrictions on their use which will never be removed.
Coupon rate
Collateral
Permanently restricted net assets
Net Assets
28. Assets = Liabilities + Net Assets (aka Equity).
Net assets released from restriction
Fixed costs
Other support
Basic accounting equation
29. 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.
Expansion decisions
Compounding
Coupon payment
Volume diversity
30. The amount of the total revenue variance that occurs because the actual average rate charged varies from that originally budgeted. It can be calculated using the formula: (actual rate -budgeted rate) x actual volume.
Capital structure ratios
Cash flows from investing activities
Revenue rate variance
FTE
31. 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.
Lien
Net increase (decrease) in cash and cash equivalents
Collection float
Profit margin
32. The amount expected to be collected from payors. It is calculated as: gross accounts receivable – discounts and allowances – allowance for un-collectibles.
Fixed (interest) rate debt
Net accounts receivable
Dividends
Asset mix
33. A benefit paid for in advance (rent - insurance - etc.). Also called prepaid expense.
Prepaid assets
Bonds
Cost object
Net proceeds from a bond issuance
34. 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.
Bonds
FTE
Accountability
Budget
35. 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.
Operating margin
Loan amortization schedule
SWOT analysis
Excess of revenues over expenses
36. A method by which the organization develops its strategies and budgets to meet future financial targets.
G & A expenses
Strategic financial planning
Coupon payment
Clinical cost centers
37. A good or service provided in return for some type of compensation.
Spillover cash flows
Transaction
Operating activities
Tangible assets
38. 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.
Temporarily restricted net assets
Liquidity
Allowance for uncollectibles
Other expenses
39. Being subject to sanctions with respect to carrying out responsibilities.
Current assets
Financing mix
Expense volume variance
Accountability
40. General and administrative expenses. Operating expenses that are not contained in the labor or supplies budgets.
Other income
Return on net assets
G & A expenses
Market rate of interest
41. A note payable that has as collateral real assets and that requires periodic payments.
Long-term debt - net of current portion
Quick ratio
Mortgage
Payback
42. Previously restricted assets no longer restricted because the terms of the restriction have been met.
Effectiveness
Operating revenues
Net assets released from restriction
IRR
43. The cost of the supplies on hand at the beginning of the year.
Opening inventory
Liabilities
Net assets to total assets
Not-for-profit
44. 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
Statement of operations
Time value of money
G & A expenses
Financing activities
45. Demonstrates the ability to pay off long term debt
Time value of money
Efficiency
Periodic payments
Long Term Solvency ratios
46. A situation in which if one project is implemented the other(s) will not be.
Mutually exclusive projects
Total revenue
Income from investments
Liabilities
47. The category of assets summarizing the amount of the major capital investments of the facility in plant - property - and equipment (PP&E). Plant means buildings - property is land - and equipment includes a wide variety of durable items from beds to
FV
Mission statement
Liabilities
Properties and equipment
48. Decisions regarding the relative amount of debt and equity used to finance the organization's non-current assets.
Operating revenues
Mission Center
Capital structure decision
Net working capital
49. Assets that have restrictions on their use which will be removed either with the passage of time or the occurrence of some event.
Profitability ratios
Temporarily restricted net assets
Current assets
Payback
50. The costs of a service after taking into account its direct and fair share of allocated costs.
Fully allocated costs
Investment centers
Collateral
Centralization