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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. Being subject to sanctions with respect to carrying out responsibilities.






2. A security whose interest rate does not change during the lifetime of the bond.






3. The amount of inventory on hand at the end of an accounting period. See also Beginning inventory.






4. Capital investment decisions designed to increase the operational capability of a health care organization.






5. 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.






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






7. A borrower's assets on which a lender has legal claim if a borrower defaults on a loan.






8. A situation in which if one project is implemented the other(s) will not be.






9. Amounts given to the organization for operating purposes - such as governmental appropriations and unrestricted donations.






10. The gradual process of paying off debt through a long series of equal periodic payments. Each payment covers a portion of the principal plus current interest. The periodic payments are equal over the lifetime of the loan - but the proportion going to






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






12. Previously restricted assets no longer restricted because the terms of the restriction have been met.






13. 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.






14. Debt to be paid off in a period longer than one year.






15. 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.






16. 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.






17. 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.






18. Financing that will be paid back in less than one year.






19. The ease and speed with which an asset can be turned into cash.






20. A security interest in one or more assets granted to lenders in a secured loan.






21. Series of payments over time - such as interest paid to bondholders.






22. [(actual volume -budgeted volume) x budgeted cost per unit).- The portion of total variance that is due to actual volume being either higher or lower than budgeted volume. It is the difference between the expenses forecast in the original budget and






23. The amount of supplies used to provide a service or good.






24. What a series of equal payments in the future is worth today taking into account the time value of money.






25. Assets = Liabilities + Net Assets (aka Equity).






26. Gross proceeds less the underwriter's fee and other issuance fees.






27. The process of distributing service center costs to mission centers - to determine the full cost of each mission center






28. (tax exempt revenue bonds)- Bonds in which the interest payments to the investor are exempt from the IRS. These bonds must be issued by an organization that has received tax exemption from the IRS and be used to fund projects that qualify as "exempt






29. Organizational unit given the responsibility to carry out one or more tasks and/or achieve one or more outcomes.






30. Revenues of the organization earned in non-healthcare related activities.






31. The changes in cash resulting from the normal operating activities of the organization.






32. An entity that sells bonds in order to raise money.






33. Traces indirect costs to activity that uses them. Overhead collected in pools and distributed to cost object by cost drivers.






34. The organization's legal obligations to pay its creditors. Liabilities are classified as current and non-current. Liabilities are one of the three major categories on the balance sheet and are part of the fundamental accounting equation.






35. The difference between current assets and current liabilities.






36. {[cash + marketable securities)/[(operating expenses -depreciation)/ 365].- A ratio that indicates the number of days' worth of expenses an organization can cover with its most liquid assets (cash and marketable securities).






37. The absence of risk in an investment.






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






39. A note payable that has as collateral real assets and that requires periodic payments.






40. 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.






41. The budget that forecasts the operating and - in some cases - the non- operating revenues that will be earned during the budget period.






42. Bonds that hold the health care provider's real property and equipment as security or collateral in case of default.






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






44. Operating income not reported elsewhere under revenues - gains - and other support.






45. The section of the statement of cash flows that reports the total change in cash and cash equivalents over the accounting period.






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






47. The increase in the value of an investment from the time it is purchased until the time it is sold.






48. Requiring the patient to pay part of his/her health care bill. These payments are used to prevent over-utilization of services.






49. [(cash + marketable securities)/current liabilities). A liquidity ratio that measures how much cash and marketable securities are available to payoff all current liabilities.






50. The activities of an organization directly related to its main line of business.