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. The process of distributing service center costs to mission centers - to determine the full cost of each mission center
Current assets
Intermediate Cost Object
Expense budget
Allocation
2. Revenues of the organization earned in non-healthcare related activities.
Contribution margin
Line of credit
Non-operating revenues
Coupon
3. The cost of the supplies on hand at the beginning of the year.
Opening inventory
Expenses
Horizontal analysis
Mortgage bonds
4. 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.
Net present value
Balance sheet
Payback
Current assets
5. Each service center
Product diversity
Service centers
Single/Simple Step
Operating expenses
6. An approach to analyzing the financial condition of an organization based on ratios calculated from line items found in the financial statements. There are four major categories of ratios: liquidity - profitability - capitalization - and activity.
Other expenses
Ratio analysis
Other revenues
Temporarily restricted net assets
7. Literally non-movable assets. Generally used to refer to buildings and equipment.
Bond rating
Footnotes
Fixed assets
Co-payments
8. [(cash + marketable securities + net accounts receivable)/current liabilities)- A measure of the organization's liquidity.
Fixed labor budget
Quick ratio
Net assets to total assets
Cash and cash equivalents
9. 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
ABC
Total revenue
Income from investments
Capital financing
10. Previously restricted assets no longer restricted because the terms of the restriction have been met.
Accrued expenses
Net assets released from restriction
Days cash on hand
Strategic planning
11. Organizational unit given the responsibility to carry out one or more tasks and/or achieve one or more outcomes.
Properties and equipment
Responsibility center
Mission statement
Allocation
12. Being subject to sanctions with respect to carrying out responsibilities.
Accountability
Certainty
Statement of cash flows
Fixed supplies budget
13. Properties and equipment less accumulated depreciation.
Properties and equipment - net
Expense budget
Single/Simple Step
Increase in unrestricted net assets
14. (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.
Short-term financing
Permanently restricted net assets
Return on total assets
Operating revenues
15. A certificate attached to a bond representing the amount of interest to be paid to the holder.
Restricted donation
Working capital
Coupon
Volume diversity
16. Organizational units responsible for providing administrative support at a profit to other organizational units or to the organization as a whole and/or raising funds externally.
Administrative profit centers
Annuity
Operating activities
Efficiency
17. 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).
Bond rating
Mortgage bonds
Dividends
Breakeven point
18. The current traded rate for similar risk securities.
Discount rate
Accrual basis of accounting
Properties and equipment - net
Market rate of interest
19. Private entity or individual who makes a donation
Decentralization
Opportunity cost
Donor
FV
20. An entity that temporarily grants the use of money or an asset to another in return for compensation - usually in the form of interest.
Comparative approach
G & A expenses
Lender
Service centers
21. 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
Capital
Properties and equipment
Current ratio
Perpetuity
22. [operating income/total operating revenues]- The proportion of profit remaining after subtracting total operating expenses from operating revenues.
Float
Operating margin
Acid test ratio
Issuer
23. The difference between current assets and current liabilities.
Net working capital
Activity Based Costing
Long-term financing
ABC
24. A security interest in one or more assets granted to lenders in a secured loan.
Lien
Net working capital
Creditor
Leverage
25. Non-operating income.
Fixed labor budget
Other income
Administrative profit centers
Line of credit
26. The section of the expense budget that forecasts salary and benefits.
Notes payable
Depreciation
Fixed labor budget
Capital appreciation
27. An organization whose profits can be distributed outside the organization and must pay taxes. Also called investor-owned organizations.
Net working capital
Beginning inventory
For-profit
Tax-exempt bonds
28. 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.
Operating cash flows
Matching principle
Excess of revenues over expenses
Cost avoidance
29. [(excess of revenues over expenses + interest expense)/interest expense].- This ratio enables creditors and lenders to evaluate an organization's ability to generate earnings necessary to meet interest expense requirements. In for-profit organization
Times interest earned
IRR
Allocation base
Non-operating revenues
30. 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.
Acid test ratio
Cash and cash equivalents
Fixed costs
Direct costs
31. A donation that has conditions which must be satisfied. See also Temporarily restricted net assets.
Non-operating ratio
Strategic financial planning
Retained earnings
Restricted donation
32. 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.
Accrual basis of accounting
Cash equivalents
Budget variance
Financing activities
33. Activities that provide guidance and feedback to keep the organization within its budget - such as staff meetings - regular reports - and bonuses.
Realization principle
Controlling activities
Mail float
Final cost object
34. Monies received that have not yet been earned. One of the most common deferred revenues is the receipt of capitation on the basis of per member per month (PMPM).
Deferred revenues
Coupon payment
ABC
Indirect costs
35. Expenses that have been incurred - but not yet paid.
Assets
Coupon payment
Non-operating income
Accrued expenses
36. 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.
Discounted cash flows
Basis of Allocation
Fixed costs
Discount rate
37. (non-operating revenues/total operating revenues)- A ratio that reflects how dependent the organization is on non-patient care related net income.
Coupon
Permanently restricted net assets
Non-operating ratio
Cost of capital
38. An entity that sells bonds in order to raise money.
Issuer
Market rate of interest
Cash flows from operating activities
Service centers
39. The method of capital budgeting that compares the cash flows resulting from continuing with the existing alternative to those that would result if the equipment were replaced.
Comparative approach
Capital structure decision
Single/Simple Step
Accumulated depreciation
40. process of measuring the resources (costs) used to produce results.
Tax-exempt bonds
SWOT analysis
Cost Accounting
Capital financing
41. The section of the statement of cash flows that reports the total change in cash and cash equivalents over the accounting period.
Accounts receivable
Activity ratios
Other support
Net increase (decrease) in cash and cash equivalents
42. Amounts due to the organization from patients - third parties - and others.
Average Days Inventory
Accounts receivable
Financing mix
Capital appreciation
43. Current year budget projected for the coming fiscal year assumes no program changes and adjust for price - workload - annualizations
Lender
Precautionary purposes
Prepaid assets
Base Budget
44. Decisions regarding the acquisition of capital assets. The capital investment decision should be separate from the decision on how to finance capital assets.
Centralization
Allocation
Ratio analysis
Capital investment decisions
45. Financing that will be paid back in less than one year.
Short-term financing
Times interest earned
Average Days Receivable
Capital budget
46. The amount expected to be collected from payors. It is calculated as: gross accounts receivable – discounts and allowances – allowance for un-collectibles.
Donation
Operating budget
Long-term financing
Net accounts receivable
47. [(actual volume -budgeted volume) x budgeted cost per unit).- The portion of total variance that is due to actual volume being either higher or lower than budgeted volume. It is the difference between the expenses forecast in the original budget and
Expense volume variance
Opportunity cost
Operating cash flows
Operating revenues
48. [Net Assets/Total Assets]. This ratio reflects the proportion of total assets financed by equity.
Long-term financing
Net Assets to Total Assets
Cash and cash equivalents
Working capital
49. 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.
Product diversity
Statement of changes in net assets
Capital structure decision
Average payment period
50. 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
Net Assets
Accounting period
Opening inventory
Incremental cash flows