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ACCA Financial Management
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Subjects
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certifications
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business-skills
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acca
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. Revenues of the organization earned in non-healthcare related activities.
Non-operating revenues
Capital budget
Liabilities
Current ratio
2. 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.
FV
Cost Accounting
Long-term financing
Book value
3. 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.
Capital
Capital structure decision
Line-item budget
Times interest earned
4. I) Measuring inputs against outputs. 2) The cost of service per unit rendered.
Volume diversity
Efficiency
Other income
Average payment period
5. [(cash + marketable securities + net accounts receivable)/current liabilities)- A measure of the organization's liquidity.
Non-current assets
Operating revenues
Quick ratio
Long-term debt - net of current portion
6. Demonstrates the extent to which the organization is earning money from its assets. Not usually as imp for NPs - varies w/ NP.
Capital
Periodic payments
Volume diversity
Asset Management ratios
7. 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.
Working capital
Transaction
Billing float
Net Assets to Total Assets
8. Ratios designed to answer the question: How profitable is the organization?
Cash equivalents
Net assets to total assets
Cost Accounting
Profitability ratios
9. 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.
Budget
Coupon payment
Centralization
Asset Management ratios
10. Series of payments over time - such as interest paid to bondholders.
Spillover cash flows
Periodic payments
Ratio analysis
ABC
11. The degree of dispersion of responsibility within an organization. See also Centralization.
Decentralization
Investment centers
ROI
ABC
12. A security whose interest rate does not change during the lifetime of the bond.
Fixed (interest) rate debt
Days cash on hand
Discounted cash flows
Lease
13. (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
Financing activities
Tax-exempt bonds
Days cash on hand
Cash budget
14. Opposite of the authoritarian approach. The roles and responsibilities of the budgeting process are diffused throughout the organization. Often called the participatory approach.
Cash and cash equivalents
Tangible assets
Top-down/bottom-up approach
Budget
15. The section of the expense budget that forecasts salary and benefits.
Cost of capital
Mortgage bonds
Fixed labor budget
Accounts payable
16. Price times total quantity.
For-profit
Expenses
Capital budget
Total revenue
17. The ease and speed with which an asset can be turned into cash.
Activity Based Costing
Fixed Asset Turnover
Liquidity
Operating margin
18. Return on investment. The percentage gain or loss experienced from an investment.
Cost centers
Current ratio
ROI
Service centers
19. Revenue is recorded when goods or services are delivered
Base Budget
Average Days Inventory
Realization principle
Net Assets to Total Assets
20. 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.
Footnotes
Effectiveness
Tangible assets
Long-term investments
21. 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.
Discount rate
Cash budget
Operating revenues
Cost avoidance
22. Gross proceeds less the underwriter's fee and other issuance fees.
Revenue budget
Net proceeds from a bond issuance
Leverage
Discounting
23. [(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.
Expense cost variance
Current liabilities
Loan amortization schedule
Final cost object
24. [(excess of revenues over expenses + interest expense + depreciation expense)/(interest expense + principal payments))- A ratio that measures an organization's ability to pay back a loan. In for-profit organizations - it is calculated as: (net income
ROI
Debt service coverage
Deferred revenues
Total revenue
25. An entity that temporarily grants the use of money or an asset to another in return for compensation - usually in the form of interest.
Precautionary purposes
Lender
Bond rating
Temporarily restricted net assets
26. Financial and non-financial standards against which organizational performance is measured.
Bond rating agency
Net Assets to Total Assets
Expense volume variance
Performance measure
27. [Net Assets/Total Assets]. This ratio reflects the proportion of total assets financed by equity.
Average Days Inventory
Amortization of a loan
Discount rate
Net Assets to Total Assets
28. Assets that provide service for a period exceeding one year. Sometimes referred to as long-term assets.
Donation
Non-current assets
Current assets
Issuer
29. The amount of the total revenue variance that occurs because the actual average rate charged varies from that originally budgeted. It can be calculated using the formula: (actual rate -budgeted rate) x actual volume.
Collection float
Multiyear budget
Revenue rate variance
Controlling activities
30. Cash inflows and outflows for the organization resulting from investing activities such as purchasing and selling investments or investing in itself by purchasing or selling non-current assets. It also includes transfers to and from the parent corpor
Float
Cash flows from investing activities
Mission Center
Temporarily restricted net assets
31. Supplementing traditional sources of revenue with new sources.
Opening inventory
Collections policies and procedures
Revenue enhancement
Net present value
32. A statistic used to allocate costs from a cost center based on a cause and effect relationship. For example - a common allocation base to allocate the costs of maintaining medical records is number of visits. See also Cost driver.
Allocation base
Mutually exclusive projects
Compounding
Fixed labor budget
33. The elapsed time between financial statements. Common accounting periods
Payback
Accounting period
Not-for-profit
Interest
34. A method of allocating costs that are not directly paid for (utilities - rent - administration) into those products or services to which payment is attached (day of care - a brief visit). See also Activity-based costing.
Capital appreciation
Traditional profit centers
Operating revenues
Step-down method
35. Requiring the patient to pay part of his/her health care bill. These payments are used to prevent over-utilization of services.
Perpetuity
Coupon
Billing float
Co-payments
36. Directly related to the purposes of the organization and the delivery of services
Net present value
Liquidity
Mission Center
Time value of money
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.
Service centers
Performance budget
Quick ratio
Restricted donation
38. [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
Footnotes
Operating cash flows
Intermediate Cost Object
Long-term debt to net assets ratio
39. [Total Revenues/ Total Assets]
Creditor
Times interest earned
Asset Turnover Ratio
Lease
40. A benefit paid for in advance (rent - insurance - etc.). Also called prepaid expense.
Step Down
Mission statement
Prepaid assets
Net working capital
41. The budget that forecasts the operating and - in some cases - the non- operating revenues that will be earned during the budget period.
Transaction
Revenue budget
Cost centers
Prepaid assets
42. Proceeds lost by foregoing other opportunities.
Net present value
Horizontal analysis
Opportunity cost
Days cash on hand
43. Budgets that typically cover two to five years.
Net assets released from restriction
Multiyear budget
Investment centers
Statement of changes in net assets
44. Current year budget projected for the coming fiscal year assumes no program changes and adjust for price - workload - annualizations
Non-operating income
Program budget
Operating expenses
Base Budget
45. Properties and equipment less accumulated depreciation.
Annuity
Properties and equipment - net
Profitability ratios
Activity Based Costing
46. An entity that gives capital to another entity in expectation of a financial or non-financial return.
Investor
Increase in unrestricted net assets
Certainty
Accrual basis of accounting
47. [Net Accounts Receivable/(Revenue/356)]
Fixed assets
Net present value
Average Days Receivable
Service centers
48. Amounts earned by the organization from the provision of service or sale of goods.
Budget
Net present value
Revenues
Periodic payments
49. [Inventory/ (Cost of Goods Sold/365)]
Allocation base
Accumulated depreciation
Expense budget
Average Days Inventory
50. The planning process that identifies the organization's mission and strategy in order to position itself for the future.
Operating margin
Other income
Strategic planning
Cash flows from financing activities