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Test your basic knowledge |
ACCA Financial Management
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Subjects
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certifications
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business-skills
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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. The cost of a capital asset (i.e. building or equipment) minus accumulated depreciation.
Non-regular cash flows
Book value
Long-term debt to net assets ratio
Final cost object
2. 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.
Opportunity cost
Cost avoidance
Product diversity
Equity financing
3. The amount expected to be collected from payors. It is calculated as: gross accounts receivable – discounts and allowances – allowance for un-collectibles.
Fully allocated costs
Net accounts receivable
Billing float
Effectiveness
4. Portion of profit an organization distributes to investors. By law - only investor-owned health care organizations can distribute dividends outside the organization.
Dividends
Effectiveness
Non-regular cash flows
Budget
5. The budget that forecasts the operating and - in some cases - the non- operating revenues that will be earned during the budget period.
Revenue budget
Top-down budgeting
Increase in unrestricted net assets
Mutually exclusive projects
6. The section of the statement of cash flows that reports the total change in cash and cash equivalents over the accounting period.
Certainty
Average Days Inventory
Activity Based Costing
Net increase (decrease) in cash and cash equivalents
7. If a project is undertaken - these cash flows are the indirect increases or decreases in cash flows that will occur elsewhere in the organization.
Precautionary purposes
Capital investment decisions
Spillover cash flows
Centralization
8. Revenues generated from an organization's operating activities.
Cost avoidance
Mortgage
Operating revenues
Non-operating ratio
9. Donated assets that have restrictions on their use which will never be removed.
Fully allocated costs
Restricted donation
Loan amortization schedule
Permanently restricted net assets
10. A measure of the income earned from operating activities. It is calculated as: unrestricted revenues - gains - and other support -expenses and losses.
Line of credit
Operating income
Activity Based Costing
Breakeven point
11. The cost of the supplies on hand at the beginning of the year.
Bond rating agency
Mutually exclusive projects
Opening inventory
Discounted cash flows
12. Responsibility centers responsible for making a certain return on investments.
Investment centers
Amortization of a loan
Cash and cash equivalents
Breakeven point
13. Policies and procedures that address when and how to collect revenues - such as paying at time of service - sending accounts to collection agencies - and writing off accounts as bad debt.
Revenue rate variance
Capital appreciation
Collections policies and procedures
Statement of operations
14. [Net Accounts Receivable/(Revenue/356)]
Average Days Receivable
Average payment period
Long Term Solvency ratios
Operating income
15. 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.
Return on net assets
Cash flows from operating activities
Line-item budget
Dividends
16. Cash flows that occur solely as a result of undertaking a project. Basically the marginal difference between alternatives.
Incremental cash flows
Non-operating revenues
Short-term financing
Capital assets
17. 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.
Expense cost variance
Average Days Receivable
Average Days Inventory
Long-term investments
18. I) Measuring inputs against outputs. 2) The cost of service per unit rendered.
Statement of changes in net assets
Efficiency
Cash flows from investing activities
Non-current liabilities
19. Price times total quantity.
Co-payments
Collection float
Investment grade
Total revenue
20. Generally - assets that will be used or consumed within one year. Some organizations use a period of less than one year.
For-profit
Current assets
Footnotes
Restricted donation
21. The amount of time between when an organization receives a service and pays for it.
Disbursement float
FV
Properties and equipment - net
Administrative profit centers
22. Ratios that answer the question: How well is the organization positioned to meet its short-term obligations?
Liquidity ratios
Capital investment decisions
Activity Based Costing
Collateral
23. Costs that stay the same in total over the relevant range as volume increases - but that change inversely on a per unit basis.
Statement of operations
Product diversity
Fixed costs
Intermediate Cost Object
24. 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).
Accrual basis of accounting
Capital structure decision
Breakeven point
Operating revenues
25. The percentage of each asset relative to total assets.
Asset mix
Days cash on hand
Profit margin
Profitability ratios
26. The process of distributing service center costs to mission centers - to determine the full cost of each mission center
Cost of capital
Debt service coverage
Allocation
Transaction
27. The degree of dispersion of responsibility within an organization. See also Centralization.
Net Assets to Total Assets
Decentralization
Final cost object
G & A expenses
28. Health maintenance organization. Entities that receive premium payments from enrollees with the understanding that the HMO will be financially responsible for all predefined health care required by its enrollees for a specified period of time. The he
Time value of money
HMO
Opportunity cost
Accountability
29. Setting aside cash to meet unexpected demands - such as unexpected maintenance of a facility or piece of equipment.
Net increase (decrease) in cash and cash equivalents
Common costs
MV
Precautionary purposes
30. Demonstrates the extent to which the organization is earning money from its assets. Not usually as imp for NPs - varies w/ NP.
Discounting
Balance sheet
Fixed asset turnover
Asset Management ratios
31. Costs (such as rent - administration - insurance - etc. that are shared by a number of services or departments and cannot easily be broken down to the services attributable to each (surgery - emergency medicine - etc.). Also called joint costs.
Non-regular cash flows
Common costs
Base Budget
Amortization of a loan
32. An entity that gives capital to another entity in expectation of a financial or non-financial return.
Asset Management ratios
Assets
Bonds
Investor
33. Traces indirect costs to activity that uses them. Overhead collected in pools and distributed to cost object by cost drivers.
Temporarily restricted net assets
Activity Based Costing
Precautionary purposes
Fixed Asset Turnover
34. Looks at the percentage change in a line item's value from one year to the next using the formula: [(subsequent year -base year)/base year) x 100. See also Vertical analysis.
Non-regular cash flows
Fixed labor budget
Horizontal analysis
SWOT analysis
35. Previously restricted assets no longer restricted because the terms of the restriction have been met.
Balance sheet
Step Down
Donor
Net assets released from restriction
36. An organization whose profits can be distributed outside the organization and must pay taxes. Also called investor-owned organizations.
Clinical cost centers
Efficiency
Discount rate
For-profit
37. The sources of funds to finance the non-current assets of the organization. Also the debt and equity of the organization.
Horizontal analysis
Increase in unrestricted net assets
Income from investments
Capital
38. Capital investment decisions designed to increase an organization's strategic position.
Fixed assets
Effectiveness
Strategic decisions
Financing mix
39. 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.
Billing float
Current ratio
Accountability
Fixed costs
40. An entity that is owed money for lending funds or supplying goods or services on credit.
Creditor
Liquidity ratios
Strategic financial planning
Other income
41. Return on investment. The percentage gain or loss experienced from an investment.
Coupon
Beginning inventory
Basic accounting equation
ROI
42. [(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.
Net assets to total assets
Base Budget
Expense cost variance
Billing - collections - and disbursement policies and procedures
43. Recording expenses associated with making revenue at the same time as revenues are recognized
Matching principle
Operating revenues
Top-down budgeting
Not-for-profit
44. Requiring the patient to pay part of his/her health care bill. These payments are used to prevent over-utilization of services.
Fixed labor budget
Balance sheet
Co-payments
Collections policies and procedures
45. The budget used to forecast operating expenses.
Top-down budgeting
Expense budget
Capital assets
Revenue enhancement
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.
Clinical cost centers
Effectiveness
Net working capital
Cash basis of accounting
47. An entity that owns other companies.
Book value
Asset Turnover Ratio
Ratio analysis
Parent organization
48. A benefit paid for in advance (rent - insurance - etc.). Also called prepaid expense.
Asset Turnover Ratio
Horizontal analysis
Prepaid assets
Controlling activities
49. 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
Centralization
Matching principle
Administrative profit centers
Amortization of a loan
50. Supplementing traditional sources of revenue with new sources.
Bond rating agency
Income from investments
Disbursement float
Revenue enhancement