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






2. 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.






3. 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.






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






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






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






7. 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.






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






9. 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.






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






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






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






13. (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






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






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






16. Price times total quantity.






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






18. Return on investment. The percentage gain or loss experienced from an investment.






19. Revenue is recorded when goods or services are delivered






20. 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.






21. 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.






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






23. [(actual cost per unit -budgeted cost per unit) x actual volume).- The difference between the variable expenses that would have been expected at the actual volume and those actually incurred.






24. [(excess of revenues over expenses + interest expense + depreciation expense)/(interest expense + principal payments))- A ratio that measures an organization's ability to pay back a loan. In for-profit organizations - it is calculated as: (net income






25. An entity that temporarily grants the use of money or an asset to another in return for compensation - usually in the form of interest.






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






27. [Net Assets/Total Assets]. This ratio reflects the proportion of total assets financed by equity.






28. Assets that provide service for a period exceeding one year. Sometimes referred to as long-term assets.






29. 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.






30. 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






31. Supplementing traditional sources of revenue with new sources.






32. 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.






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






34. A method of allocating costs that are not directly paid for (utilities - rent - administration) into those products or services to which payment is attached (day of care - a brief visit). See also Activity-based costing.






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






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






37. A budget which presents not only line items and programs but also the performance goals that each program can be expected to attain. See also Line item budget and Program budget.






38. [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






39. [Total Revenues/ Total Assets]






40. A benefit paid for in advance (rent - insurance - etc.). Also called prepaid expense.






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






42. Proceeds lost by foregoing other opportunities.






43. Budgets that typically cover two to five years.






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






45. Properties and equipment less accumulated depreciation.






46. An entity that gives capital to another entity in expectation of a financial or non-financial return.






47. [Net Accounts Receivable/(Revenue/356)]






48. Amounts earned by the organization from the provision of service or sale of goods.






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






50. The planning process that identifies the organization's mission and strategy in order to position itself for the future.