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






2. The current traded rate for similar risk securities.






3. The elapsed time between financial statements. Common accounting periods






4. The income (operating revenues -operating expenses) earned in non-health-care related activities.






5. 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.






6. The cost of the supplies on hand at the beginning of the year.






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






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






9. Organizational units responsible for providing health care related services to clients - patients - or enrollees - and the related costs thereof.






10. Assets that have a physical presence.






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






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






13. An entity that owns other companies.






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






15. 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.






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






17. One of the four major financial statements. It explains the changes in net assets from one period to the next on the balance sheet. Also called statement of changes in owners' equity in a for-profit business.






18. The balance sheet category that includes actual money on hand as well as money equivalents - such as savings and checking accounts. It excludes cash restricted as to its use for something other than current operations.






19. 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.






20. Debt to be paid off in a period longer than one year.






21. [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).






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






23. Assets = Liabilities + Net Assets (aka Equity).






24. [total revenues/net plant & equipment]- This ratio measures the number of dollars generated for each dollar invested in an organization's plant and equipment.






25. A technique to evaluate an organization's strengths - weaknesses - opportunities - and threats. Also called a WOTS-up analysis.






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






27. The difference between current assets and current liabilities.






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






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






30. [current assets/current liabilities].- This liquidity ratio measures the proportion of all current assets to all current liabilities to determine how easily current debt can be paid off. It is one of the most commonly used ratios.






31. Amounts earned by the organization from the provision of service or sale of goods.






32. When different products use overhead related services in different proportions - and when the costs of those services are significantly different - The situation present when products consume overhead in different proportions.






33. The process of adjusting for the time value of money backward in time to present value. See also Compounding.






34. Ratios that answer the question: How well is the organization positioned to meet its short-term obligations?






35. Irregular cash flows - typically occurring at the end of the life of a project.






36. 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.






37. [Total Revenues/ Total Assets]






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






39. Service center costs are allocated to both mission centers and other service centers






40. Any product - service - customer - contract - project - process or other work unit for which a separate cost measurement is desired.






41. The changes in cash resulting from the normal operating activities of the organization.






42. The expenses incurred from an organization's operating activities.






43. The planning process that identifies the organization's mission and strategy in order to position itself for the future.






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






45. The budget used to forecast operating expenses.






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






47. Budgets that typically cover two to five years.






48. An entity that is owed money for lending funds or supplying goods or services on credit.






49. Proceeds lost by foregoing other opportunities.






50. Financing that will be paid back in less than one year.