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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. When products are manufactured in batches in different sizes - and overhead activities are affected by the size of the batch being produced






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






3. A method by which the organization develops its strategies and budgets to meet future financial targets.






4. The elapsed time between financial statements. Common accounting periods






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






6. Supplementing traditional sources of revenue with new sources.






7. [(cash + marketable securities + net accounts receivable)/current liabilities)- A measure of the organization's liquidity.






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






9. The difference between what was planned (budgeted) and what was achieved (actual).






10. The purchase of assets with contributed and internally generated funds. See also Debt financing.






11. [(excess of revenues over expenses + interest expense)/interest expense].- This ratio enables creditors and lenders to evaluate an organization's ability to generate earnings necessary to meet interest expense requirements. In for-profit organization






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






13. Non-operating income.






14. 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.






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






16. If a project is undertaken - these cash flows are the indirect increases or decreases in cash flows that will occur elsewhere in the organization.






17. The absence of risk in an investment.






18. Financial obligations that will be paid off over a time period longer than one year






19. Cash flows that have been adjusted to their present value to account for the cost of capital (over time) and the time value of money.






20. The degree to which standards are met.






21. An investment that generates an annuity for an indefinite period of time - basically forever.






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






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






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






25. Agencies that assess the "credit worthiness" of an organization. The two major rating agencies are Moody's and Standard & Poor.






26. Portion of profit an organization distributes to investors. By law - only investor-owned health care organizations can distribute dividends outside the organization.






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






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






29. Private entity or individual who makes a donation






30. 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.






31. 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.






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






33. The delay between providing the service and getting the bill to the patient or third party. There are two aspects of billing float: assembling the bill and delivering the bill to the patient or third-party payor.






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






35. Portion of the profits the organization keeps in-house to use in support of its mission.






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






37. One of the four major financial statements. It answers the question: Where did our cash come from and where did it go during the accounting period?






38. 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.






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






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






41. 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.






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






43. 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.






44. Irregular cash flows - typically occurring at the end of the life of a project.






45. A section of the statement of cash flows used to report such activities as borrowing and paying back loans.






46. Opposite of the authoritarian approach. The roles and responsibilities of the budgeting process are diffused throughout the organization. Often called the participatory approach.






47. 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.






48. Service center costs are allocated to both mission centers and other service centers






49. Amounts the organization is obligated to pay others - including suppliers and creditors.






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