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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 elapsed time between financial statements. Common accounting periods






2. Highly liquid current assets such as interest-bearing savings and checking accounts.






3. 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.






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






5. 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






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






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






8. (excess of revenues over expenses/net assets)- In not-for-profit health care organizations - it measures the rate of return for each dollar in net assets. In for-profit organizations - it measures the rate of return for each dollar in owners' equity;






9. Directly related to the purposes of the organization and the delivery of services






10. Financial and non-financial standards against which organizational performance is measured.






11. [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?






12. 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






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






14. [Total Liabilities/ Net assets]






15. An assignment or grading of the likelihood that an organization will not default on a bond.






16. 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.






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






18. The income (operating revenues -operating expenses) earned in non-health-care related activities.






19. A donation that has conditions which must be satisfied. See also Temporarily restricted net assets.






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






21. Market value. The price at which something - such as bonds and stocks - could be bought or sold today on the open market.






22. 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.






23. Each service center






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






25. Expenses of the organization incurred in non-health-care related activities.






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






27. The section of the expense budget that forecasts salary and benefits.






28. (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.






29. 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).






30. The unit of service which we wish to know the cost for (hospital admission - classroom hour - course - etc.)






31. A legal obligation to pay the holder of the note or lien.






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






33. 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.






34. Organizational units responsible for providing health care related services to clients - patients - or enrollees - and the related costs thereof.






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






36. process of measuring the resources (costs) used to produce results.






37. Current assets. Net working capital equals current assets –current liabilities.






38. The total amount of multiyear debt due in future years.






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






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






41. Ratios that measure how efficiently an organization is using its assets to produce revenues.






42. 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.






43. 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.






44. Cash inflows and outflows resulting from financing activities - such as obtaining grants or endowments - or from borrowing or paying back long-term debt.






45. [Inventory/ (Cost of Goods Sold/365)]






46. Costs not traced to a cost object - but that must eventually be allocated across cost objects. See also Direct costs.






47. A category of income that includes unrestricted interest - dividends - and gains from the sale of unrestricted investments.






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






49. Ratios designed to answer the question: How profitable is the organization?






50. The costs of a service after taking into account its direct and fair share of allocated costs.