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. Directly related to the purposes of the organization and the delivery of services
Mission Center
Non-operating ratio
Statement of cash flows
Discounting
2. The degree of dispersion of responsibility within an organization. See also Centralization.
Other expenses
Lien
Decentralization
FV
3. Expenses that have been incurred - but not yet paid.
Fixed asset turnover
Cost centers
Capital assets
Accrued expenses
4. Expenses of the organization incurred in non-health-care related activities.
Book value
Non-operating expenses
Incremental cash flows
Bad debt
5. A note payable that has as collateral real assets and that requires periodic payments.
Billing - collections - and disbursement policies and procedures
Mortgage
Beginning inventory
Responsibility center
6. Operating income not reported elsewhere under revenues - gains - and other support.
Fixed asset turnover
Debt service coverage
Non-operating income
Other revenues
7. Return on investment. The percentage gain or loss experienced from an investment.
Non-regular cash flows
ROI
Cash flows from financing activities
Temporarily restricted net assets
8. What a series of equal payments in the future is worth today taking into account the time value of money.
Compounding
Present value of an annuity
Statement of changes in net assets
Non-regular cash flows
9. Amounts due to the organization from patients - third parties - and others.
Accounts receivable
Coupon rate
Strategic decisions
Other income
10. An entity that gives capital to another entity in expectation of a financial or non-financial return.
Indirect costs
Investor
Discounting
Total asset turnover
11. The cost of a capital asset (i.e. building or equipment) minus accumulated depreciation.
Cash flows from operating activities
Coupon rate
Book value
Hedge
12. Any product - service - customer - contract - project - process or other work unit for which a separate cost measurement is desired.
Billing - collections - and disbursement policies and procedures
Precautionary purposes
Fixed costs
Cost object
13. Assets that provide service for a period exceeding one year. Sometimes referred to as long-term assets.
Non-current assets
Opportunity cost
Incremental cash flows
Investment centers
14. [long-term debt/net assets]- A measure of the proportion of an organization's assets that are financed by debt as opposed to equity. In for-profit organizations - it is called the long-term debt to equity ratio and is calculated using the formula [lo
Expense budget
Investment centers
Return on total assets
Long-term debt to net assets ratio
15. Financial and non-financial standards against which organizational performance is measured.
Cash basis of accounting
Current ratio
Performance measure
Dividends
16. Budgets that typically cover two to five years.
Multiyear budget
Top-down/bottom-up approach
Days cash on hand
Fixed assets
17. The organization's legal obligations to pay its creditors. Liabilities are classified as current and non-current. Liabilities are one of the three major categories on the balance sheet and are part of the fundamental accounting equation.
Liabilities
ABC
Working capital
Program budget
18. The bottom line in the statement of operations. It includes such items as operating and non-operating income - contributions of long-lived assets - transfers to parent - and extraordinary items.
Acid test ratio
Fixed assets
Increase in unrestricted net assets
Cost of capital
19. Setting aside cash to meet unexpected demands - such as unexpected maintenance of a facility or piece of equipment.
Equity financing
Precautionary purposes
Long-term debt to net assets ratio
Long-term debt - net of current portion
20. The current traded rate for similar risk securities.
Accrual basis of accounting
Market rate of interest
Liabilities
Interest
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
Properties and equipment
Net assets to total assets
Mutually exclusive projects
Collection float
22. Assets = Liabilities + Net Assets (aka Equity).
Tangible assets
ROI
Basic accounting equation
Opportunity cost
23. The rate of return required to undertake a project. Also called the hurdle rate or discount rate.
Investment centers
Not-for-profit
Cost of capital
Performance budget
24. The activities of an organization directly related to its main line of business.
Operating activities
Disbursement float
Long-term financing
Service centers
25. A security interest in one or more assets granted to lenders in a secured loan.
Lien
IRR
Ending inventory
Accountability
26. The costs of a service after taking into account its direct and fair share of allocated costs.
Expansion decisions
Accounting period
Fully allocated costs
Assets
27. Revenues generated from an organization's operating activities.
Intermediate Cost Object
Accounts payable
Revenue rate variance
Operating revenues
28. One of the four major financial statements. It summarizes the organization's revenues and expenses during an accounting period as well as other items that affect its unrestricted net assets. It is analogous to - but different from - an income stateme
Bond rating agency
SWOT analysis
Statement of operations
Decentralization
29. Portion of profit an organization distributes to investors. By law - only investor-owned health care organizations can distribute dividends outside the organization.
Hedge
Mission Center
Issuer
Dividends
30. The rise in an economy's general level of prices.
Comparative approach
Balance sheet
Cost Accounting
Inflation
31. General and administrative expenses. Operating expenses that are not contained in the labor or supplies budgets.
Beginning inventory
G & A expenses
Tax-exempt bonds
Long-term debt to net assets ratio
32. 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
Float
Non-regular cash flows
Administrative profit centers
Amortization of a loan
33. The bottom area of the financial statements that contains key information not available in the body of the statements - such as how charity is determined - the composition of investments - which assets are restricted - and the depreciation method.
Administrative cost centers
Non-regular cash flows
Footnotes
Lease
34. Market value. The price at which something - such as bonds and stocks - could be bought or sold today on the open market.
Book value
MV
Inflation
Step-down method
35. [(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
Multiyear budget
Permanently restricted net assets
Times interest earned
Strategic planning
36. The income (operating revenues -operating expenses) earned in non-health-care related activities.
Interest
Non-operating income
Non-operating ratio
Fixed asset turnover
37. An assignment or grading of the likelihood that an organization will not default on a bond.
Investor
Non-current assets
Operating cash flows
Bond rating
38. (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
Liabilities
Footnotes
Lender
39. An entity that is owed money for lending funds or supplying goods or services on credit.
Quick ratio
Market rate of interest
Tangible assets
Creditor
40. [Surplus/Operating Revenues]
Notes payable
Profit margin
Cash budget
Revenues
41. The absence of risk in an investment.
Average Days Receivable
Depreciation
Certainty
Opportunity cost
42. Generally - assets that will be used or consumed within one year. Some organizations use a period of less than one year.
Fixed asset turnover
Cost
Current assets
Expense cost variance
43. The cost of activities that take place to produce the final cost object
Equity financing
Intermediate Cost Object
Performance budget
Book value
44. [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).
Investment centers
Current ratio
Net present value
Fixed Asset Turnover
45. Revenue is recorded when goods or services are delivered
Incremental cash flows
Working capital
Deferred revenues
Realization principle
46. Private entity or individual who makes a donation
Tax-exempt bonds
Collections policies and procedures
Discounting
Donor
47. A legal obligation to pay the holder of the note or lien.
FV
Notes payable
ROI
Horizontal analysis
48. A measure of the income earned from operating activities. It is calculated as: unrestricted revenues - gains - and other support -expenses and losses.
ROI
Operating income
Indirect costs
Service centers
49. Amounts the organization is obligated to pay others - including suppliers and creditors.
Expenses
Accounts payable
Incremental cash flows
Allowance for uncollectibles
50. The difference between what was planned (budgeted) and what was achieved (actual).
Fully allocated costs
Budget variance
Final cost object
Cost avoidance