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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. 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).






2. [Total Liabilities/ Net assets]






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






4. Expenses of the organization incurred in non-health-care related activities.






5. I) Measuring inputs against outputs. 2) The cost of service per unit rendered.






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






7. 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






8. A measure of the resources used to generate revenue and/or provide a service. Often used synonymously with costs. See also Costs.






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






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






11. 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.






12. 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.






13. 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.






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






15. A transaction that reduces the risk of an investment.






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






17. 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.






18. A balance sheet account that estimates the total amount of customer accounts receivable that will not be collected. It is also called allowance for bad debts and allowance for doubtful accounts.






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






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






21. 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






22. The budget that forecasts the operating and - in some cases - the non- operating revenues that will be earned during the budget period.






23. Private entity or individual who makes a donation






24. Return on investment. The percentage gain or loss experienced from an investment.






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






26. The resources owned by the organization. It is one of the three major categories on the balance sheet.






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






28. 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.






29. Proceeds lost by foregoing other opportunities.






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






31. [Net Accounts Receivable/(Revenue/356)]






32. Supplementing traditional sources of revenue with new sources.






33. The ease and speed with which an asset can be turned into cash.






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






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






36. 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.






37. Full-time equivalent employees. Two half-time employees equal one FTE.






38. Financial and non-financial standards against which organizational performance is measured.






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






40. Assets that have a physical presence.






41. 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.






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






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






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






45. A method by which the organization develops its strategies and budgets to meet future financial targets.






46. Decisions regarding the acquisition of capital assets. The capital investment decision should be separate from the decision on how to finance capital assets.






47. [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).






48. Decisions regarding the relative amount of debt and equity used to finance the organization's non-current assets.






49. A benefit paid for in advance (rent - insurance - etc.). Also called prepaid expense.






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