Test your basic knowledge |

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






2. 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.






3. Looks at the percentage change in a line item's value from one year to the next using the formula: [(subsequent year -base year)/base year) x 100. See also Vertical analysis.






4. I) Organizations that have a special designation because they provide goods or services that result in needed community benefit. In turn - such organizations are not required to pay most taxes. 2) The designation of an organization as one that is not






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






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






7. Revenue is recorded when goods or services are delivered






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






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






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






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






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






13. Series of payments over time - such as interest paid to bondholders.






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






15. An investment that generates an annuity for an indefinite period of time - basically forever.






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






17. The amount of supplies used to provide a service or good.






18. (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;






19. An organization whose profits can be distributed outside the organization and must pay taxes. Also called investor-owned organizations.






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






21. Gross proceeds less the underwriter's fee and other issuance fees.






22. Proceeds lost by foregoing other opportunities.






23. The difference between what was planned (budgeted) and what was achieved (actual).






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






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






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






27. 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.






28. 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






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






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






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






32. Organizational units responsible for their own costs that provide administrative support to other organizational units or the organization






33. Being subject to sanctions with respect to carrying out responsibilities.






34. [total revenues/total assets].- This ratio measures the overall efficiency of the organization's assets to produce revenue. It answers the question: For every dollar in assets - how many dollars of revenue are being generated?






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






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






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






38. One of the four major financial statements of a health care organization. It presents a summary of the organization's assets - liabilities - and net assets as of a certain date.






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






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






41. An organization's financial obligations that are to be paid within one year.






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






43. The difference between the initial amount paid for an investment and the related future cash inflows after they have been adjusted (discounted) by the cost of capital.






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






45. 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.






46. The process of distributing service center costs to mission centers - to determine the full cost of each mission center






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






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






49. 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.






50. Each service center