SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
ACCA Financial Management
Start Test
Study First
Subjects
:
certifications
,
business-skills
,
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. 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.
Administrative cost centers
Return on net assets
Operating activities
Compounding
2. 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.
Financing activities
Coupon payment
Expense cost variance
Properties and equipment
3. The changes in cash resulting from the normal operating activities of the organization.
Budget
Cash equivalents
Cash flows from operating activities
Coupon
4. How an organization chooses to finance its working capital needs.
Discounted cash flows
Financing mix
Net assets to total assets
Mortgage bonds
5. 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.
Performance budget
Discount rate
Billing float
Transaction
6. Series of payments over time - such as interest paid to bondholders.
Ratio analysis
Capital investment decisions
Periodic payments
Line of credit
7. A situation in which if one project is implemented the other(s) will not be.
Working capital
Mutually exclusive projects
Mortgage
Accounts payable
8. The elapsed time between financial statements. Common accounting periods
Accounting period
Loan amortization schedule
Activity Based Costing
Fixed assets
9. Costs not traced to a cost object - but that must eventually be allocated across cost objects. See also Direct costs.
Balance sheet
Lease
Long-term financing
Indirect costs
10. Non-operating income.
Allocation
Expansion decisions
Other income
Allocation base
11. Costs (such as rent - administration - insurance - etc. that are shared by a number of services or departments and cannot easily be broken down to the services attributable to each (surgery - emergency medicine - etc.). Also called joint costs.
HMO
Common costs
Direct costs
Collateral
12. 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.
Periodic payments
Cash and cash equivalents
Total asset turnover
Budget
13. A benefit paid for in advance (rent - insurance - etc.). Also called prepaid expense.
Prepaid assets
Activity ratios
Base Budget
Present value of an annuity
14. The resources owned by the organization. It is one of the three major categories on the balance sheet.
Budget variance
Investor
Assets
Acid test ratio
15. 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.
Issuer
Investment grade
Other expenses
Net Assets to Total Assets
16. [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).
Net assets to total assets
Accumulated depreciation
Cost of goods sold
Basis of Allocation
17. A good or service provided in return for some type of compensation.
Transaction
Matching principle
Basis of Allocation
Other income
18. The rate of return required to undertake a project. Also called the hurdle rate or discount rate.
Performance budget
Billing - collections - and disbursement policies and procedures
Cost of capital
Fixed costs
19. (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;
Return on net assets
Revenue rate variance
Other support
Administrative cost centers
20. Assets = Liabilities + Net Assets (aka Equity).
Accounts receivable
Basic accounting equation
Discount rate
Net Assets to Total Assets
21. Costs that stay the same in total over the relevant range as volume increases - but that change inversely on a per unit basis.
Restricted donation
Bonds
Accumulated depreciation
Fixed costs
22. The section of the expense budget that forecasts the cost of those supplies that will not vary as a direct result of changes in the amount of services provided (such as administrative office supplies).
Fixed supplies budget
Base Budget
Expansion decisions
Permanently restricted net assets
23. Assets minus Liabilities. One of the three major categories on the balance sheet. Traditionally known as stockholders' equity in investor-owned organizations and fund balance in not-for-profit organizations. In not-for-profit health care organization
Cash flows from financing activities
Coupon payment
Net Assets
Loan amortization schedule
24. 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.
Profit margin
Long-term investments
Bad debt
Accounting period
25. Opposite of the authoritarian approach. The roles and responsibilities of the budgeting process are diffused throughout the organization. Often called the participatory approach.
Efficiency
Properties and equipment - net
Top-down/bottom-up approach
Lender
26. (excess of revenues over expenses/total assets)- A measure of how much profit is earned for each dollar invested in assets. In for-profit organizations it is called return on assets and is calculated as: net income/assets.
Operating budget
Expense volume variance
Certainty
Return on total assets
27. Each service center
Other support
Line-item budget
Single/Simple Step
Activity Based Costing
28. Debt to be paid off in a period longer than one year.
Long-term financing
Total revenue
Investment centers
Budget
29. The system of accounting that recognizes revenues when earned and expenses when resources are used. This method is used by most non-governmental health care organizations. See also Cash basis of accounting.
Fixed assets
Accrual basis of accounting
Service centers
Collections policies and procedures
30. The degree to which standards are met.
FV
Discount rate
Effectiveness
Acid test ratio
31. Revenues of the organization earned in non-healthcare related activities.
Non-operating revenues
Asset Turnover Ratio
Controlling activities
Other support
32. Private entity or individual who makes a donation
Donor
Net increase (decrease) in cash and cash equivalents
Temporarily restricted net assets
Current assets
33. The expenses incurred from an organization's operating activities.
Asset Turnover Ratio
G & A expenses
Cost of goods sold
Operating expenses
34. The revenue that the organization has a right to collect. It is computed as: gross patient service revenues – contractual allowance and charity care.
Capital financing
Strategic decisions
Net patient service revenue
Net assets to total assets
35. Supplementing traditional sources of revenue with new sources.
Operating budget
Fixed asset turnover
Revenue enhancement
Non-current liabilities
36. The increase in the value of an investment from the time it is purchased until the time it is sold.
Capital structure ratios
Capital appreciation
Net Assets
Total revenue
37. An estimate/measure of how much a tangible asset (such as plant or equipment) has been "used up" during an accounting period. It is an expense that does not require any cash outflow under the accrual basis of accounting. See also Accumulated deprecia
Donation
Lien
Depreciation
Assets
38. A budget in which line items are presented by program.
Program budget
Strategic planning
Dividends
Inflation
39. Proceeds lost by foregoing other opportunities.
Top-down budgeting
Cost avoidance
Hedge
Opportunity cost
40. Organizational units responsible for their own costs that provide administrative support to other organizational units or the organization
Coupon rate
Administrative cost centers
Accounts receivable
Net accounts receivable
41. Demonstrates the ability to pay off long term debt
Long Term Solvency ratios
Single/Simple Step
Discounting
Revenues
42. 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
Cash basis of accounting
HMO
Collection float
Basic accounting equation
43. The total amount of multiyear debt due in future years.
Permanently restricted net assets
Current ratio
Long-term debt - net of current portion
Performance measure
44. [Total Liabilities/ Net assets]
Debt to equity
Not-for-profit
Matching principle
Asset Management ratios
45. The category of assets summarizing the amount of the major capital investments of the facility in plant - property - and equipment (PP&E). Plant means buildings - property is land - and equipment includes a wide variety of durable items from beds to
Days cash on hand
Current liabilities
Intermediate Cost Object
Properties and equipment
46. Activity-based costing. A method to determine the costs of a service - product - or customer by tracing the resources consumed. ABC focuses on: I) controlling as well as calculating costs - 2) tracing as opposed to allocating costs - and 3) the impor
Long-term financing
ABC
Step-down method
Loan amortization schedule
47. Highly liquid current assets such as interest-bearing savings and checking accounts.
Long-term debt to net assets ratio
Line-item budget
Administrative profit centers
Cash equivalents
48. 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.
Service centers
Profitability ratios
Line of credit
Accounts receivable
49. 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).
Non-operating income
Breakeven point
Final cost object
Performance budget
50. The elapsed time between when the patient or third-party payor sends the payment and the time the health care provider receives the payment.
Long-term financing
Mail float
Operating expenses
Notes payable