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






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






3. The category of assets summarizing the amount of the major capital investments of the facility in plant - property - and equipment (PP&E). Plant means buildings - property is land - and equipment includes a wide variety of durable items from beds to






4. 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.






5. [(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






6. Organizational units responsible for their own costs that provide administrative support to other organizational units or the organization






7. The elapsed time between when the patient or third-party payor sends the payment and the time the health care provider receives the payment.






8. Private entity or individual who makes a donation






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






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






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






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






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






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






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






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






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






18. Expenses of the organization incurred in non-health-care related activities.






19. 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.






20. {current liabilities/[(total expenses






21. Activities that provide guidance and feedback to keep the organization within its budget - such as staff meetings - regular reports - and bonuses.






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






23. 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.






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






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






26. A budget in which line items are presented by program.






27. 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






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






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






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






31. process of measuring the resources (costs) used to produce results.






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






33. Budgets that typically cover two to five years.






34. The unit of service which we wish to know the cost for (hospital admission - classroom hour - course - etc.)






35. (excess of revenues over expenses/net assets)- In not-for-profit health care organizations - it measures the rate of return for each dollar in net assets. In for-profit organizations - it measures the rate of return for each dollar in owners' equity;






36. 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.






37. 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






38. 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.






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






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






41. 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.






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






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






44. Organizational units primarily responsible for ensuring that services are provided to a population in a manner that meets the volume and quality requirements of the organization. Service centers are the most basic type of responsibility centers.






45. Decisions regarding the relative amount of debt and equity used to finance the organization's non-current assets.






46. Operating income plus other income. This is analogous to net income before taxes in for-profit entities.






47. The amount remaining after subtracting variable costs from revenues. When the organization is not at capacity - it is the "profit" the organization makes on providing each new unit that is available to cover all other costs. Contribution margin may b






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






49. [(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






50. The revenue and expense budgets of an organization.