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






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






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






4. The total amount of multiyear debt due in future years.






5. Funds provided by a private entity or individual without the requirement of repayment. Donations can either be restricted or unrestricted.






6. [Total assets/Net Assets]






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






8. Revenues of the organization earned in non-healthcare related activities.






9. 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.






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






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






12. A borrower's assets on which a lender has legal claim if a borrower defaults on a loan.






13. The ability of an organization to find new ways to operate that obviate the need for certain classes of costs - such as doing procedures on an outpatient rather than inpatient basis.






14. 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)






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






16. [Total Revenues/ Total Assets]






17. Revenue is recorded when goods or services are delivered






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






19. 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.






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






21. 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.






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






23. [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?






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






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






26. {current liabilities/[(total expenses






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






28. 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.






29. [(actual volume -budgeted volume) x budgeted cost per unit).- The portion of total variance that is due to actual volume being either higher or lower than budgeted volume. It is the difference between the expenses forecast in the original budget and






30. Each service center






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






32. I) Calculating interest using the compound interest method. 2) Adjusting for the time value of money forward in time to a future value. See also Compound interest method and Discounting.






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






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






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






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






37. Proceeds lost by foregoing other opportunities.






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






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






40. Portion of the profits the organization keeps in-house to use in support of its mission.






41. The rate of return required to undertake a project. Also called the hurdle rate or discount rate.






42. 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?






43. A budget in which line items are presented by program.






44. 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.






45. 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






46. The absence of risk in an investment.






47. Previously restricted assets no longer restricted because the terms of the restriction have been met.






48. Internal rate of return. The percentage return on an investment. It is the rate of return at which the net present value equals zero. Often used as a comparison to cost of capital.






49. 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.






50. The amount of inventory on hand at the beginning of an accounting period. See also Ending inventory.