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. Budgets that typically cover two to five years.
Realization principle
Multiyear budget
Mission Center
Certainty
2. Financial and non-financial standards against which organizational performance is measured.
Fixed (interest) rate debt
Performance measure
Cost
Capital appreciation
3. Return on investment. The percentage gain or loss experienced from an investment.
Disbursement float
Responsibility center
ROI
Average Days Receivable
4. Expenses that have been incurred - but not yet paid.
Increase in unrestricted net assets
Accountability
MV
Accrued expenses
5. 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.
Basic accounting equation
Ending inventory
Line-item budget
Fixed Asset Turnover
6. Service center costs are allocated to both mission centers and other service centers
Lien
ROI
Step Down
Asset Management ratios
7. 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).
Retained earnings
Breakeven point
Product diversity
Debt service coverage
8. [Net Accounts Receivable/(Revenue/356)]
Operating income
Average Days Receivable
Cash basis of accounting
Program budget
9. A legal obligation to pay the holder of the note or lien.
Breakeven point
Book value
Basic accounting equation
Notes payable
10. Amounts due to the organization from patients - third parties - and others.
Capital budget
Common costs
Accounts receivable
Strategic financial planning
11. Highly liquid current assets such as interest-bearing savings and checking accounts.
Properties and equipment
Cash equivalents
Short-term financing
Mail float
12. 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.
Investor
Comparative approach
Operating revenues
IRR
13. Capital investment decisions designed to increase the operational capability of a health care organization.
Long-term debt - net of current portion
Fixed (interest) rate debt
Expansion decisions
Fixed asset turnover
14. 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).
Accounts receivable
Deferred revenues
Coupon rate
Interest
15. What a series of equal payments in the future is worth today taking into account the time value of money.
Profit margin
Expansion decisions
Present value of an annuity
Cash flows from financing activities
16. A measure of the income earned from operating activities. It is calculated as: unrestricted revenues - gains - and other support -expenses and losses.
Operating income
Capital appreciation
IRR
Days cash on hand
17. A transaction that reduces the risk of an investment.
Other revenues
Hedge
Equity financing
Operating cash flows
18. Assets = Liabilities + Net Assets (aka Equity).
Basic accounting equation
Fixed Asset Turnover
Footnotes
Budget
19. The expenses incurred from an organization's operating activities.
Operating expenses
Traditional profit centers
Mortgage bonds
Asset Turnover Ratio
20. A method to evaluate the feasibility of an investment by determining how long it would take until the initial investment is recovered. This method does not account for the time value of money.
Discounted cash flows
Payback
Accounting period
Line-item budget
21. Organizational units primarily responsible for ensuring that services are provided to a population in a manner that meets the volume and quality requirements of the organization. Service centers are the most basic type of responsibility centers.
Service centers
Fully allocated costs
Top-down budgeting
Basic accounting equation
22. The sources of funds to finance the non-current assets of the organization. Also the debt and equity of the organization.
IRR
Capital
Tax-exempt bonds
Other expenses
23. Traces indirect costs to activity that uses them. Overhead collected in pools and distributed to cost object by cost drivers.
Decentralization
Activity Based Costing
Permanently restricted net assets
Intermediate Cost Object
24. Assets that have a useful life greater than one year - such as plant - property - and equipment. Plant and equipment are depreciated over time; land (property) is not.
Deferred revenues
Basic accounting equation
Capital assets
Cash basis of accounting
25. Proceeds lost by foregoing other opportunities.
Bond rating
Administrative cost centers
Opportunity cost
Indirect costs
26. [operating income/total operating revenues]- The proportion of profit remaining after subtracting total operating expenses from operating revenues.
Net Assets
Operating margin
Donation
Fixed Asset Turnover
27. The method by which to distribute service center costs to mission centers; in general the one that most accurately measures use by the cost centers that receives its services (food service - # of meals - hospital laundry - # of pounds processed)
MV
Asset Management ratios
Intermediate Cost Object
Basis of Allocation
28. Private entity or individual who makes a donation
Donor
Cash equivalents
Liquidity ratios
Horizontal analysis
29. [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
Fully allocated costs
Capital investment decisions
Excess of revenues over expenses
30. An assignment or grading of the likelihood that an organization will not default on a bond.
Capital investment decisions
Footnotes
Multiyear budget
Bond rating
31. The section of the expense budget that forecasts the cost of those supplies that will not vary as a direct result of changes in the amount of services provided (such as administrative office supplies).
Fixed supplies budget
Cash and cash equivalents
Responsibility center
Ending inventory
32. An organization whose profits can be distributed outside the organization and must pay taxes. Also called investor-owned organizations.
Net increase (decrease) in cash and cash equivalents
For-profit
Donor
Average Days Inventory
33. Recording expenses associated with making revenue at the same time as revenues are recognized
Matching principle
Accumulated depreciation
Centralization
Expense volume variance
34. 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.
Net Assets
Collections policies and procedures
SWOT analysis
Return on total assets
35. 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.
Return on total assets
Fixed (interest) rate debt
Bonds
Cost centers
36. Future value. What an amount invested today (or a series of payments made over time) will be worth at a given time in the future using the compound interest method. This accounts for the time value of money. See also Present value.
Intermediate Cost Object
FV
Restricted donation
Footnotes
37. The process of adjusting for the time value of money backward in time to present value. See also Compounding.
Discounting
Transaction
Prepaid assets
Donor
38. The purchase of assets with contributed and internally generated funds. See also Debt financing.
Equity financing
Fixed asset turnover
Operating cash flows
Tangible assets
39. Setting aside cash to meet unexpected demands - such as unexpected maintenance of a facility or piece of equipment.
Precautionary purposes
Other expenses
Mail float
HMO
40. A good or service provided in return for some type of compensation.
Transaction
Certainty
Non-operating revenues
Cash flows from operating activities
41. 1) The resources used to produce a good or service. 2) The amount of cash given up in a transaction. 3) Price. The first definition is based on accrual accounting and the second on cash accounting.
Performance measure
Accounting period
Cost
Long-term investments
42. Directly related to the purposes of the organization and the delivery of services
Capital
Volume diversity
Mission Center
Excess of revenues over expenses
43. Generally - assets that will be used or consumed within one year. Some organizations use a period of less than one year.
Direct costs
Donor
Current assets
Profit margin
44. 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
Properties and equipment
Net Assets
For-profit
Discount rate
45. 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.
Revenue rate variance
Product diversity
Annuity
Administrative cost centers
46. 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.
Basic accounting equation
Fixed assets
Revenue rate variance
Notes payable
47. 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.
Strategic decisions
Operating activities
Centralization
Lease
48. An entity that owns other companies.
Cost centers
Parent organization
Cost of goods sold
Billing float
49. 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.
Mission Center
Perpetuity
Comparative approach
Increase in unrestricted net assets
50. 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
Bond rating agency
Statement of operations
Intermediate Cost Object
Revenue budget