Test your basic knowledge |

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






2. Organizational units responsible for providing services and controlling their costs. There are two major types: clinical cost centers and administrative cost centers.






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






4. [Total Revenues/(Net Fixed Assets)]. This ratio measures the number of dollars generated for each dollar invested in an organization's fixed assets (i.e. plant and equipment).






5. Monies received that have not yet been earned. One of the most common deferred revenues is the receipt of capitation on the basis of per member per month (PMPM).






6. 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.






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






8. 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.






9. (non-operating revenues/total operating revenues)- A ratio that reflects how dependent the organization is on non-patient care related net income.






10. [operating income/total operating revenues]- The proportion of profit remaining after subtracting total operating expenses from operating revenues.






11. 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.






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






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






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






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






16. Cash flows that occur solely as a result of undertaking a project. Basically the marginal difference between alternatives.






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






18. 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.






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






20. The cost of a capital asset (i.e. building or equipment) minus accumulated depreciation.






21. That process of budgeting where the environmental assessment and planning of future activities are largely decided upon by a few individuals - and the budget is essentially dictated to the rest of the organization. Often called authoritarian approach






22. Costs that are traced to a cost object. See also Indirect costs and Cost object.






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






24. [Total assets/Net Assets]






25. The method by which to distribute service center costs to mission centers; in general the one that most accurately measures use by the cost centers that receives its services (food service - # of meals - hospital laundry - # of pounds processed)






26. 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.






27. [total revenues/net plant & equipment]- This ratio measures the number of dollars generated for each dollar invested in an organization's plant and equipment.






28. 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.






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






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






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






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






33. 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.






34. [(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






35. 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.






36. 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






37. 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.






38. The system of accounting that recognizes revenues when earned and expenses when resources are used. This method is used by most non-governmental health care organizations. See also Cash basis of accounting.






39. 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.






40. A measure of the resources used to generate revenue and/or provide a service. Often used synonymously with costs. See also Costs.






41. An entity that owns other companies.






42. 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.






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






44. [(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






45. I) Organizations that have a special designation because they provide goods or services that result in needed community benefit. In turn - such organizations are not required to pay most taxes. 2) The designation of an organization as one that is not






46. The system of accounting that recognizes revenues when cash is received and expenses when cash is paid out. See also Accrual basis of accounting.






47. The idea that a dollar today is worth more than a dollar in the future.






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






49. Generally - assets that will be used or consumed within one year. Some organizations use a period of less than one year.






50. [(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






Can you answer 50 questions in 15 minutes?



Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests