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ACCA Financial Management

Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. Highly liquid current assets such as interest-bearing savings and checking accounts.






2. 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.






3. The time between the issuance of the bill and the time funds are available for use by the health care organization. It has two components: mail float and processing float.






4. 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.






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






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






7. 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.






8. [Total Revenues/ Total Assets]






9. Assets that have a physical presence.






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






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






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






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






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






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






16. The revenue and expense budgets of an organization.






17. 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?






18. Capital investment decisions designed to increase an organization's strategic position.






19. Policies and procedures that address when and how to collect revenues - such as paying at time of service - sending accounts to collection agencies - and writing off accounts as bad debt.






20. A series of equal cash flows made or received at regular time intervals. Ordinary annuities occur at the end of each period whereas annuities due occur at the beginning of each period.






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






22. A transaction that reduces the risk of an investment.






23. One of the four major financial statements. It summarizes the organization's revenues and expenses during an accounting period as well as other items that affect its unrestricted net assets. It is analogous to - but different from - an income stateme






24. The amount the holder of the coupon receives periodically - usually semiannually. Over the year - it equals the coupon rate times the face value of the bond.






25. Monies received that have not yet been earned. One of the most common deferred revenues is the receipt of capitation on the basis of per member per month (PMPM).






26. Series of payments over time - such as interest paid to bondholders.






27. 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






28. 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.






29. Non-operating income.






30. The section of the expense budget that forecasts salary and benefits.






31. [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).






32. (non-operating revenues/total operating revenues)- A ratio that reflects how dependent the organization is on non-patient care related net income.






33. 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.






34. Directly related to the purposes of the organization and the delivery of services






35. A security whose interest rate does not change during the lifetime of the bond.






36. 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.






37. A measure of the income earned from operating activities. It is calculated as: unrestricted revenues - gains - and other support -expenses and losses.






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






39. 1) The resources used to produce a good or service. 2) The amount of cash given up in a transaction. 3) Price. The first definition is based on accrual accounting and the second on cash accounting.






40. An organization whose profits can be distributed outside the organization and must pay taxes. Also called investor-owned organizations.






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






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






43. Organizational units primarily responsible for providing services and earning a profit based on the health care services provided.






44. Private entity or individual who makes a donation






45. The difference between the initial amount paid for an investment and the related future cash inflows after they have been adjusted (discounted) by the cost of capital.






46. The costs of a service after taking into account its direct and fair share of allocated costs.






47. [(cash + marketable securities + net accounts receivable)/current liabilities)- A measure of the organization's liquidity.






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






49. An entity that owns other companies.






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







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