Test your basic knowledge |

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 method by which to distribute service center costs to mission centers; in general the one that most accurately measures use by the cost centers that receives its services (food service - # of meals - hospital laundry - # of pounds processed)






2. [Net Accounts Receivable/(Revenue/356)]






3. Costs that stay the same in total over the relevant range as volume increases - but that change inversely on a per unit basis.






4. The difference between current assets and current liabilities.






5. The bottom area of the financial statements that contains key information not available in the body of the statements - such as how charity is determined - the composition of investments - which assets are restricted - and the depreciation method.






6. 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.






7. Cash inflows and outflows resulting from financing activities - such as obtaining grants or endowments - or from borrowing or paying back long-term debt.






8. 1) The returns that must be generated on a project to compensate the organization for its risk. 2) The returns the organization is foregoing by investing its money in one project as opposed to an alternative of similar risk. See also Cost of capital.






9. The degree of dispersion of responsibility within an organization. See also Centralization.






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






11. The system of accounting that recognizes revenues when cash is received and expenses when cash is paid out. See also Accrual basis of accounting.






12. A donation that has conditions which must be satisfied. See also Temporarily restricted net assets.






13. Decisions regarding the acquisition of capital assets. The capital investment decision should be separate from the decision on how to finance capital assets.






14. I) Measuring inputs against outputs. 2) The cost of service per unit rendered.






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






16. Price times total quantity.






17. Ratios that measure how the organization's assets are financed and/or whether the organization can take on new debt.






18. 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.






19. A category of income that includes unrestricted interest - dividends - and gains from the sale of unrestricted investments.






20. The cost of a capital asset (i.e. building or equipment) minus accumulated depreciation.






21. What a series of equal payments in the future is worth today taking into account the time value of money.






22. 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?






23. Portion of profit an organization distributes to investors. By law - only investor-owned health care organizations can distribute dividends outside the organization.






24. 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.






25. The amount of time between when an organization receives a service and pays for it.






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






27. When products are manufactured in batches in different sizes - and overhead activities are affected by the size of the batch being produced






28. [(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






29. Assets that have restrictions on their use which will be removed either with the passage of time or the occurrence of some event.






30. Operating income not reported elsewhere under revenues - gains - and other support.






31. Future value. What an amount invested today (or a series of payments made over time) will be worth at a given time in the future using the compound interest method. This accounts for the time value of money. See also Present value.






32. 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.






33. One of the four major financial statements. It explains the changes in net assets from one period to the next on the balance sheet. Also called statement of changes in owners' equity in a for-profit business.






34. Financial and non-financial standards against which organizational performance is measured.






35. Non-operating income.






36. An organization's financial obligations that are to be paid within one year.






37. A contract between a lender and a potential borrower preauthorizing the potential borrower's right to borrow up to a specific amount on request as long as they fulfill the terms and conditions of the contract. Also called a letter of credit.






38. (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;






39. 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






40. 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.






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






42. Gross proceeds less the underwriter's fee and other issuance fees.






43. Organizational units responsible for providing health care related services to clients - patients - or enrollees - and the related costs thereof.






44. 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.






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






46. Opposite of the authoritarian approach. The roles and responsibilities of the budgeting process are diffused throughout the organization. Often called the participatory approach.






47. {[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).






48. Organizational units responsible for providing services and controlling their costs. There are two major types: clinical cost centers and administrative cost centers.






49. [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






50. 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).







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:



Major Subjects



Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Most popular tests