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Test your basic knowledge |
ACCA Financial Management
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Subjects
:
certifications
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business-skills
,
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. Amounts given to the organization for operating purposes - such as governmental appropriations and unrestricted donations.
Average payment period
Net accounts receivable
Other support
FTE
2. Costs that stay the same in total over the relevant range as volume increases - but that change inversely on a per unit basis.
Cost centers
Current liabilities
Long-term investments
Fixed costs
3. 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.
Operating income
Service centers
Long-term debt - net of current portion
Creditor
4. The costs of a service after taking into account its direct and fair share of allocated costs.
Fully allocated costs
Not-for-profit
Return on net assets
Revenue enhancement
5. The ease and speed with which an asset can be turned into cash.
Liquidity
Operating margin
Beginning inventory
Disbursement float
6. [Total assets/Net Assets]
Total revenue
Leverage
Time value of money
Average payment period
7. 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).
Certainty
Breakeven point
Net Assets to Total Assets
Lien
8. [net assets/total assets)- This ratio reflects the proportion of total assets financed by equity. In for-profit organizations it is called the equity to total asset ratio and is calculated using the formula [owners' equity/total assets).
Allocation
Return on net assets
Cash basis of accounting
Net assets to total assets
9. The cash flows derived from an organization's operating activities.
Line of credit
Dividends
Expense volume variance
Operating cash flows
10. A measure of the income earned from operating activities. It is calculated as: unrestricted revenues - gains - and other support -expenses and losses.
Revenue rate variance
Donor
Working capital
Operating income
11. 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.
Liquidity
Step-down method
Periodic payments
FTE
12. Stated interest rate on a bond - as promised by the issuer.
Coupon rate
Net proceeds from a bond issuance
Cost Accounting
Top-down budgeting
13. Operating income not reported elsewhere under revenues - gains - and other support.
Properties and equipment
Restricted donation
Fixed asset turnover
Other revenues
14. 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
Clinical cost centers
Average Days Inventory
Not-for-profit
Incremental cash flows
15. An estimate/measure of how much a tangible asset (such as plant or equipment) has been "used up" during an accounting period. It is an expense that does not require any cash outflow under the accrual basis of accounting. See also Accumulated deprecia
Depreciation
Accounts receivable
Properties and equipment
Inflation
16. The process of adjusting for the time value of money backward in time to present value. See also Compounding.
Discounting
Fixed labor budget
Accounts payable
Average payment period
17. 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
Properties and equipment
Book value
Incremental cash flows
Dividends
18. [total revenues/total assets].- This ratio measures the overall efficiency of the organization's assets to produce revenue. It answers the question: For every dollar in assets - how many dollars of revenue are being generated?
Net accounts receivable
Allocation base
Total asset turnover
Compounding
19. Portion of profit an organization distributes to investors. By law - only investor-owned health care organizations can distribute dividends outside the organization.
Dividends
Fixed assets
Coupon rate
SWOT analysis
20. The amount of inventory on hand at the end of an accounting period. See also Beginning inventory.
Transaction
Operating income
Coupon rate
Ending inventory
21. I) The cost to borrow money. It can be expressed in dollars or as a percentage. 2) Payment to creditors for the use of money on credit.
Operating budget
Intermediate Cost Object
Perpetuity
Interest
22. An entity that gives capital to another entity in expectation of a financial or non-financial return.
Temporarily restricted net assets
Service centers
Investor
Total asset turnover
23. Financing used expressly for the purchase of non-current assets.
Allocation base
Capital financing
Administrative profit centers
Compounding
24. Revenues of the organization earned in non-healthcare related activities.
Non-operating revenues
Matching principle
Billing - collections - and disbursement policies and procedures
Prepaid assets
25. The income (operating revenues -operating expenses) earned in non-health-care related activities.
Non-operating income
Debt to equity
Administrative profit centers
Present value of an annuity
26. The amount of inventory on hand at the beginning of an accounting period. See also Ending inventory.
Cash budget
Beginning inventory
Dividends
Footnotes
27. Ratios that measure how the organization's assets are financed and/or whether the organization can take on new debt.
Asset Turnover Ratio
Cash flows from financing activities
Inflation
Capital structure ratios
28. {current liabilities/[(total expenses
Cost avoidance
Operating expenses
Average payment period
Long-term financing
29. Service center costs are allocated to both mission centers and other service centers
Bad debt
Current liabilities
Non-current assets
Step Down
30. General and administrative expenses. Operating expenses that are not contained in the labor or supplies budgets.
Non-current assets
Ratio analysis
Cash budget
G & A expenses
31. [Total Liabilities/ Net assets]
Common costs
Clinical cost centers
Opportunity cost
Debt to equity
32. The total amount of multiyear debt due in future years.
Cost centers
Efficiency
Revenues
Long-term debt - net of current portion
33. Requiring the patient to pay part of his/her health care bill. These payments are used to prevent over-utilization of services.
Co-payments
Cost object
Bond rating
Strategic financial planning
34. Budgets that typically cover two to five years.
Multiyear budget
Profitability ratios
Certainty
Long-term debt - net of current portion
35. Proceeds lost by foregoing other opportunities.
Liquidity ratios
Opportunity cost
Expenses
Base Budget
36. A donation that has conditions which must be satisfied. See also Temporarily restricted net assets.
Restricted donation
Accounts payable
Not-for-profit
Basic accounting equation
37. A borrower's assets on which a lender has legal claim if a borrower defaults on a loan.
Collateral
Payback
Assets
Other income
38. Highly liquid current assets such as interest-bearing savings and checking accounts.
Final cost object
Cash equivalents
Profitability ratios
Increase in unrestricted net assets
39. The elapsed time between financial statements. Common accounting periods
Billing - collections - and disbursement policies and procedures
Equity financing
Bond rating
Accounting period
40. Recording expenses associated with making revenue at the same time as revenues are recognized
Matching principle
Cash flows from operating activities
Indirect costs
Mission statement
41. Financing that will be paid back in less than one year.
Short-term financing
Properties and equipment - net
Fixed assets
Cost
42. Literally non-movable assets. Generally used to refer to buildings and equipment.
Properties and equipment - net
Non-current assets
Fixed assets
Billing - collections - and disbursement policies and procedures
43. A security whose interest rate does not change during the lifetime of the bond.
Capital structure decision
Fixed (interest) rate debt
Indirect costs
Mail float
44. [Surplus/Operating Revenues]
Top-down budgeting
Profit margin
Non-current assets
Issuer
45. [Net Assets/Total Assets]. This ratio reflects the proportion of total assets financed by equity.
Fixed assets
Capital appreciation
Net Assets to Total Assets
Donation
46. Activity-based costing. A method to determine the costs of a service - product - or customer by tracing the resources consumed. ABC focuses on: I) controlling as well as calculating costs - 2) tracing as opposed to allocating costs - and 3) the impor
Float
Debt to equity
ABC
Hedge
47. Organizational units responsible for providing services and controlling their costs. There are two major types: clinical cost centers and administrative cost centers.
Float
Certainty
Cost centers
Leverage
48. Organizational units responsible for providing administrative support at a profit to other organizational units or to the organization as a whole and/or raising funds externally.
Parent organization
Interest
Administrative profit centers
Mortgage bonds
49. Amounts the organization is obligated to pay others - including suppliers and creditors.
Spillover cash flows
Accounts payable
G & A expenses
Net Assets
50. The cost of activities that take place to produce the final cost object
Budget
Cash flows from operating activities
Responsibility center
Intermediate Cost Object