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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. Being subject to sanctions with respect to carrying out responsibilities.






2. General and administrative expenses. Operating expenses that are not contained in the labor or supplies budgets.






3. [Total assets/Net Assets]






4. [long-term debt/net assets]- A measure of the proportion of an organization's assets that are financed by debt as opposed to equity. In for-profit organizations - it is called the long-term debt to equity ratio and is calculated using the formula [lo






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






6. Assets = Liabilities + Net Assets (aka Equity).






7. Financing that will be paid back in less than one year.






8. A legal obligation to pay the holder of the note or lien.






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






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






11. The cash flows derived from an organization's operating activities.






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






13. [(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.






14. The amount expected to be collected from payors. It is calculated as: gross accounts receivable – discounts and allowances – allowance for un-collectibles.






15. 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.






16. 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.






17. 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






18. Amounts due to the organization from patients - third parties - and others.






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






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






21. The section of the expense budget that forecasts the cost of those supplies that will not vary as a direct result of changes in the amount of services provided (such as administrative office supplies).






22. The revenue and expense budgets of an organization.






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






24. Amounts earned by the organization from the provision of service or sale of goods.






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






26. An entity that temporarily grants the use of money or an asset to another in return for compensation - usually in the form of interest.






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






28. A note payable that has as collateral real assets and that requires periodic payments.






29. 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.






30. Service center costs are allocated to both mission centers and other service centers






31. A good or service provided in return for some type of compensation.






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






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






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






35. One of the four major financial statements of a health care organization. It presents a summary of the organization's assets - liabilities - and net assets as of a certain date.






36. Current assets. Net working capital equals current assets –current liabilities.






37. Time delays in the billing and collection process. There are four categories of float: billing - collection - transit - and disbursement. An organization's goal is to optimize float for incoming revenues and outgoing bills.






38. 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






39. [(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






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






41. Properties and equipment less accumulated depreciation.






42. 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.






43. Literally non-movable assets. Generally used to refer to buildings and equipment.






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






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






46. 1) The degree to which power and authority is concentrated in an organization. 2) The degree to which a variety of services are offered at a single location.






47. The difference between current assets and current liabilities.






48. The budget used to forecast operating expenses.






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






50. [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).