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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. (tax exempt revenue bonds)- Bonds in which the interest payments to the investor are exempt from the IRS. These bonds must be issued by an organization that has received tax exemption from the IRS and be used to fund projects that qualify as "exempt






3. 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






4. [Net Assets/Total Assets]. This ratio reflects the proportion of total assets financed by equity.






5. Revenues generated from an organization's operating activities.






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






7. The central document of the planning/control cycle. It identifies revenues and resources that will be needed by an organization to achieve its goals and objectives.






8. Ratios designed to answer the question: How profitable is the organization?






9. The percentage of each asset relative to total assets.






10. The purchase of assets with contributed and internally generated funds. See also Debt financing.






11. Ratios that measure how efficiently an organization is using its assets to produce revenues.






12. A catchall category for miscellaneous expenses and losses not included in other categories (telephone - travel - meals - etc.).






13. 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






14. Demonstrates the ability to pay off long term debt






15. An entity that owns other companies.






16. A contract in which the lessee (user) agrees to pay the leassor (owner) a specific amount over a period of time for the use of an asset.






17. Assets that have a physical presence.






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






19. Bonds that have received a rating ranging from AM to BBB (at S&P) - or Aaa to Bbb (Moody's) - of which the highest are called quality ratings.






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






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






22. The section of the statement of cash flows that reports the total change in cash and cash equivalents over the accounting period.






23. {current liabilities/[(total expenses






24. [Total Revenues/ Total Assets]






25. Responsibility centers responsible for making a certain return on investments.






26. process of measuring the resources (costs) used to produce results.






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






28. [net assets/total assets)- This ratio reflects the proportion of total assets financed by equity. In for-profit organizations it is called the equity to total asset ratio and is calculated using the formula [owners' equity/total assets).






29. An entity that gives capital to another entity in expectation of a financial or non-financial return.






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






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






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






33. Expenses that have been incurred - but not yet paid.






34. Stated interest rate on a bond - as promised by the issuer.






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






36. Budgets that typically cover two to five years.






37. 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.






38. [(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






39. 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.






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






41. Costs not traced to a cost object - but that must eventually be allocated across cost objects. See also Direct costs.






42. 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.






43. The cost of activities that take place to produce the final cost object






44. 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)






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






46. The rise in an economy's general level of prices.






47. Current year budget projected for the coming fiscal year assumes no program changes and adjust for price - workload - annualizations






48. Private entity or individual who makes a donation






49. 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.






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