SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
ACCA Financial Management
Start Test
Study First
Subjects
:
certifications
,
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. Funds provided by a private entity or individual without the requirement of repayment. Donations can either be restricted or unrestricted.
Donation
Discounted cash flows
FV
Other expenses
2. Price times total quantity.
Time value of money
IRR
Billing float
Total revenue
3. Responsibility centers responsible for making a certain return on investments.
Certainty
Investment centers
Profitability ratios
Revenue enhancement
4. Organizational units primarily responsible for providing services and earning a profit based on the health care services provided.
Not-for-profit
Centralization
Strategic financial planning
Traditional profit centers
5. An entity that owns other companies.
Parent organization
Cash basis of accounting
Cost object
Capital
6. Capital investment decisions designed to increase an organization's strategic position.
Controlling activities
Average Days Receivable
Other support
Strategic decisions
7. Assets that provide service for a period exceeding one year. Sometimes referred to as long-term assets.
Investment centers
Disbursement float
Mortgage bonds
Non-current assets
8. 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.
Bond rating
Fixed (interest) rate debt
Inflation
Performance budget
9. Revenue is recorded when goods or services are delivered
Top-down budgeting
Strategic financial planning
Average Days Inventory
Realization principle
10. Full-time equivalent employees. Two half-time employees equal one FTE.
Responsibility center
Periodic payments
FTE
Liquidity
11. A schedule detailing the principal and interest payments required to repay a loan. Typically - the periodic payments remain unchanged - but the proportion used to payoff the principal increases over time.
Coupon payment
Periodic payments
Loan amortization schedule
Line of credit
12. The cumulative amount of depreciation recognized on an asset since its purchase. An asset's book value is equal to its purchase price less the amount of accumulated depreciation.
Donation
Operating margin
Non-operating income
Accumulated depreciation
13. [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).
Fixed Asset Turnover
Cost of goods sold
Final cost object
Capital assets
14. If a project is undertaken - these cash flows are the indirect increases or decreases in cash flows that will occur elsewhere in the organization.
Asset mix
Mission statement
Temporarily restricted net assets
Spillover cash flows
15. Proceeds lost by foregoing other opportunities.
Net assets to total assets
Ratio analysis
Opportunity cost
Contribution margin
16. The difference between what was planned (budgeted) and what was achieved (actual).
Statement of changes in net assets
Cash flows from operating activities
Expenses
Budget variance
17. {[cash + marketable securities)/[(operating expenses -depreciation)/ 365].- A ratio that indicates the number of days' worth of expenses an organization can cover with its most liquid assets (cash and marketable securities).
ROI
Float
Time value of money
Days cash on hand
18. The idea that a dollar today is worth more than a dollar in the future.
Net Assets to Total Assets
Other support
Time value of money
Top-down/bottom-up approach
19. A good or service provided in return for some type of compensation.
Transaction
Amortization of a loan
Current assets
Bond rating agency
20. A note payable that has as collateral real assets and that requires periodic payments.
Short-term financing
Depreciation
Mortgage
Average payment period
21. The budget that forecasts the operating and - in some cases - the non- operating revenues that will be earned during the budget period.
Revenue budget
Net patient service revenue
Performance measure
Total asset turnover
22. [(cash + marketable securities)/current liabilities). A liquidity ratio that measures how much cash and marketable securities are available to payoff all current liabilities.
Acid test ratio
Long-term debt to net assets ratio
Balance sheet
Administrative cost centers
23. 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.
Mail float
Bonds
Effectiveness
Accounts receivable
24. The organization's legal obligations to pay its creditors. Liabilities are classified as current and non-current. Liabilities are one of the three major categories on the balance sheet and are part of the fundamental accounting equation.
Non-operating income
ROI
Liabilities
Inflation
25. The cash flows derived from an organization's operating activities.
Administrative cost centers
Operating cash flows
Interest
Budget variance
26. A legal obligation to pay the holder of the note or lien.
Notes payable
Dividends
Other expenses
Asset Management ratios
27. Donated assets that have restrictions on their use which will never be removed.
Perpetuity
Issuer
Permanently restricted net assets
Revenue enhancement
28. Assets = Liabilities + Net Assets (aka Equity).
Basic accounting equation
Balance sheet
Coupon payment
Precautionary purposes
29. Decisions regarding the relative amount of debt and equity used to finance the organization's non-current assets.
Basic accounting equation
Net patient service revenue
Capital structure decision
FTE
30. 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
Step Down
Liquidity
Contribution margin
Collection float
31. Organizational unit given the responsibility to carry out one or more tasks and/or achieve one or more outcomes.
Deferred revenues
Responsibility center
Return on net assets
Net Assets
32. Operating income plus other income. This is analogous to net income before taxes in for-profit entities.
Base Budget
Current assets
Restricted donation
Excess of revenues over expenses
33. [(cash + marketable securities + net accounts receivable)/current liabilities)- A measure of the organization's liquidity.
Non-regular cash flows
Asset mix
Lender
Quick ratio
34. 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.
Asset mix
Times interest earned
Allowance for uncollectibles
Net increase (decrease) in cash and cash equivalents
35. The expenses incurred from an organization's operating activities.
Restricted donation
Operating expenses
Spillover cash flows
Payback
36. The budget used to forecast operating expenses.
Expense budget
Payback
Financing activities
Current assets
37. I) Measuring inputs against outputs. 2) The cost of service per unit rendered.
Accrual basis of accounting
Amortization of a loan
Cash budget
Efficiency
38. Tools used to increase the amount of cash available to the organization. The objective of billing - credit - and collection policies is to accelerate cash receipts; the objective of cash disbursement policies is to slow down cash outflows.
Other revenues
Billing - collections - and disbursement policies and procedures
Discount rate
Quick ratio
39. The rate of return required to undertake a project. Also called the hurdle rate or discount rate.
Book value
Cost of capital
Clinical cost centers
Debt service coverage
40. Assets minus Liabilities. One of the three major categories on the balance sheet. Traditionally known as stockholders' equity in investor-owned organizations and fund balance in not-for-profit organizations. In not-for-profit health care organization
Asset Turnover Ratio
Net Assets
Cash flows from financing activities
Donation
41. The section of the expense budget that forecasts salary and benefits.
Administrative cost centers
Net increase (decrease) in cash and cash equivalents
Product diversity
Fixed labor budget
42. Highly liquid current assets such as interest-bearing savings and checking accounts.
Cash equivalents
Restricted donation
Bond rating
Step-down method
43. The degree to which standards are met.
Non-operating expenses
Allowance for uncollectibles
Annuity
Effectiveness
44. A security interest in one or more assets granted to lenders in a secured loan.
Bond rating
Ending inventory
Lien
Service centers
45. Cash inflows and outflows resulting from financing activities - such as obtaining grants or endowments - or from borrowing or paying back long-term debt.
Short-term financing
Present value of an annuity
Days cash on hand
Cash flows from financing activities
46. One of the four major financial statements. It answers the question: Where did our cash come from and where did it go during the accounting period?
Revenue enhancement
Operating expenses
Statement of cash flows
Average Days Receivable
47. Each service center
Periodic payments
Single/Simple Step
Capital structure ratios
Indirect costs
48. Portion of the profits the organization keeps in-house to use in support of its mission.
Spillover cash flows
Retained earnings
Comparative approach
Net assets released from restriction
49. Being subject to sanctions with respect to carrying out responsibilities.
Discounting
Long-term debt - net of current portion
Long Term Solvency ratios
Accountability
50. The revenue that the organization has a right to collect. It is computed as: gross patient service revenues – contractual allowance and charity care.
Working capital
HMO
Billing float
Net patient service revenue