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. Portion of the profits the organization keeps in-house to use in support of its mission.
Loan amortization schedule
Net present value
Retained earnings
Expense budget
2. 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.
Lease
Ratio analysis
Strategic financial planning
Cost Accounting
3. How an organization chooses to finance its working capital needs.
Decentralization
Budget
Opportunity cost
Financing mix
4. Demonstrates the extent to which the organization is earning money from its assets. Not usually as imp for NPs - varies w/ NP.
Cost object
Permanently restricted net assets
Asset Management ratios
Fixed (interest) rate debt
5. The income (operating revenues -operating expenses) earned in non-health-care related activities.
Ratio analysis
Non-operating income
Mutually exclusive projects
Non-operating ratio
6. 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.
Administrative profit centers
Donation
Direct costs
Mission statement
7. The activities of an organization directly related to its main line of business.
Interest
Non-operating ratio
Operating activities
Mortgage
8. 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.
Net assets to total assets
Collection float
Performance budget
Strategic decisions
9. 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.
Cost of goods sold
Cash equivalents
Annuity
Revenue budget
10. [(cash + marketable securities)/current liabilities). A liquidity ratio that measures how much cash and marketable securities are available to payoff all current liabilities.
Parent organization
Acid test ratio
Collection float
Capital budget
11. A contract between a lender and a potential borrower preauthorizing the potential borrower's right to borrow up to a specific amount on request as long as they fulfill the terms and conditions of the contract. Also called a letter of credit.
Liquidity ratios
Line of credit
Capital structure ratios
FV
12. The sources of funds to finance the non-current assets of the organization. Also the debt and equity of the organization.
Asset Turnover Ratio
Capital
Opening inventory
Net assets to total assets
13. 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).
Breakeven point
Lien
Strategic planning
Current liabilities
14. Costs that stay the same in total over the relevant range as volume increases - but that change inversely on a per unit basis.
Expense cost variance
Fixed costs
Market rate of interest
Capital structure ratios
15. Setting aside cash to meet unexpected demands - such as unexpected maintenance of a facility or piece of equipment.
Precautionary purposes
Mortgage
Traditional profit centers
Cost
16. A statistic used to allocate costs from a cost center based on a cause and effect relationship. For example - a common allocation base to allocate the costs of maintaining medical records is number of visits. See also Cost driver.
Investment centers
Expansion decisions
Balance sheet
Allocation base
17. The process of adjusting for the time value of money backward in time to present value. See also Compounding.
Discounting
Average Days Receivable
Bond rating agency
Tax-exempt bonds
18. Full-time equivalent employees. Two half-time employees equal one FTE.
Present value of an annuity
FTE
Controlling activities
Net patient service revenue
19. Supplementing traditional sources of revenue with new sources.
Administrative profit centers
Operating expenses
Other support
Revenue enhancement
20. The percentage of each asset relative to total assets.
Cash flows from operating activities
Donation
Ratio analysis
Asset mix
21. Directly related to the purposes of the organization and the delivery of services
Revenue budget
Net assets to total assets
Creditor
Mission Center
22. [current assets/current liabilities].- This liquidity ratio measures the proportion of all current assets to all current liabilities to determine how easily current debt can be paid off. It is one of the most commonly used ratios.
Line of credit
Asset Management ratios
Current ratio
Lien
23. Private entity or individual who makes a donation
Operating income
Donor
Operating margin
Strategic decisions
24. Highly liquid current assets such as interest-bearing savings and checking accounts.
Operating revenues
Basis of Allocation
Annuity
Cash equivalents
25. The ease and speed with which an asset can be turned into cash.
Non-operating revenues
Line-item budget
Liquidity
Profit margin
26. Assets that have a physical presence.
Final cost object
Step-down method
Increase in unrestricted net assets
Tangible assets
27. 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.
ROI
Accrual basis of accounting
Accumulated depreciation
Program budget
28. The expenses incurred from an organization's operating activities.
Operating expenses
Expansion decisions
Effectiveness
Net working capital
29. Decisions regarding the acquisition of capital assets. The capital investment decision should be separate from the decision on how to finance capital assets.
Net assets released from restriction
Lender
Capital investment decisions
Parent organization
30. The budget used to forecast - and in some cases justify - the expenditures (and in some cases the sources of financing) for non-current assets.
FTE
Debt service coverage
Breakeven point
Capital budget
31. 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.
Long-term investments
Book value
Expense cost variance
Allocation
32. 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.
Coupon payment
Clinical cost centers
Lender
Ending inventory
33. 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.
Non-operating revenues
Performance budget
Ratio analysis
Non-operating income
34. The planning process that identifies the organization's mission and strategy in order to position itself for the future.
Activity Based Costing
Other revenues
Strategic planning
Lender
35. The bottom area of the financial statements that contains key information not available in the body of the statements - such as how charity is determined - the composition of investments - which assets are restricted - and the depreciation method.
Excess of revenues over expenses
Footnotes
Cash flows from operating activities
Other income
36. Non-operating income.
Net working capital
Other income
Responsibility center
Realization principle
37. When products are manufactured in batches in different sizes - and overhead activities are affected by the size of the batch being produced
Inflation
Mortgage bonds
Liquidity
Volume diversity
38. Series of payments over time - such as interest paid to bondholders.
Fully allocated costs
G & A expenses
Periodic payments
Long-term debt to net assets ratio
39. The current traded rate for similar risk securities.
Asset Turnover Ratio
Discount rate
Market rate of interest
Mutually exclusive projects
40. 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
Allocation
Total asset turnover
Deferred revenues
41. Capital investment decisions designed to increase an organization's strategic position.
Accounts payable
Non-operating expenses
Statement of operations
Strategic decisions
42. Internal rate of return. The percentage return on an investment. It is the rate of return at which the net present value equals zero. Often used as a comparison to cost of capital.
Budget variance
Annuity
Quick ratio
IRR
43. I) Measuring inputs against outputs. 2) The cost of service per unit rendered.
HMO
Efficiency
SWOT analysis
Realization principle
44. [long-term debt/net assets]- A measure of the proportion of an organization's assets that are financed by debt as opposed to equity. In for-profit organizations - it is called the long-term debt to equity ratio and is calculated using the formula [lo
Long-term debt to net assets ratio
Expenses
Coupon payment
Cash basis of accounting
45. 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.
Fixed labor budget
Annuity
Allowance for uncollectibles
Tax-exempt bonds
46. Donated assets that have restrictions on their use which will never be removed.
Program budget
Permanently restricted net assets
Tax-exempt bonds
Beginning inventory
47. The difference between the initial amount paid for an investment and the related future cash inflows after they have been adjusted (discounted) by the cost of capital.
Coupon rate
Non-current assets
IRR
Net present value
48. 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.
Allocation
Single/Simple Step
Revenue enhancement
Increase in unrestricted net assets
49. A note payable that has as collateral real assets and that requires periodic payments.
Realization principle
Ending inventory
Mortgage
Properties and equipment - net
50. The cash flows derived from an organization's operating activities.
Mortgage bonds
Capital financing
Operating cash flows
Realization principle