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. I) Measuring inputs against outputs. 2) The cost of service per unit rendered.
Issuer
Breakeven point
Efficiency
Mortgage bonds
2. Recording expenses associated with making revenue at the same time as revenues are recognized
Product diversity
Accountability
Matching principle
Net present value
3. An assignment or grading of the likelihood that an organization will not default on a bond.
Product diversity
Bond rating
Fully allocated costs
Operating cash flows
4. Gross proceeds less the underwriter's fee and other issuance fees.
FTE
Opening inventory
Net proceeds from a bond issuance
Quick ratio
5. 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.
Mission statement
Basis of Allocation
Common costs
Liabilities
6. The income (operating revenues -operating expenses) earned in non-health-care related activities.
Billing - collections - and disbursement policies and procedures
Operating income
Deferred revenues
Non-operating income
7. When products are manufactured in batches in different sizes - and overhead activities are affected by the size of the batch being produced
Cash basis of accounting
Cash equivalents
Volume diversity
Asset mix
8. [(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
Net accounts receivable
Bond rating
Times interest earned
Other revenues
9. A budget which presents not only line items and programs but also the performance goals that each program can be expected to attain. See also Line item budget and Program budget.
Discounted cash flows
Tangible assets
ROI
Performance budget
10. The budget that projects the organization's cash inflows and outflows. The bottom line in the cash budget is the amount of cash available at the end of the period.
IRR
Non-operating ratio
MV
Cash budget
11. Operating income not reported elsewhere under revenues - gains - and other support.
Restricted donation
Accumulated depreciation
Payback
Other revenues
12. Series of payments over time - such as interest paid to bondholders.
Short-term financing
Periodic payments
Statement of changes in net assets
Current liabilities
13. 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
Cash and cash equivalents
Net Assets
Fixed asset turnover
Other expenses
14. A statistic used to allocate costs from a cost center based on a cause and effect relationship. For example - a common allocation base to allocate the costs of maintaining medical records is number of visits. See also Cost driver.
Accounts receivable
Equity financing
Allocation base
Administrative profit centers
15. 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.
Comparative approach
Centralization
Service centers
Cash and cash equivalents
16. 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.
Dividends
Net accounts receivable
Disbursement float
Horizontal analysis
17. [(cash + marketable securities + net accounts receivable)/current liabilities)- A measure of the organization's liquidity.
Accounts receivable
Quick ratio
Step-down method
Issuer
18. Previously restricted assets no longer restricted because the terms of the restriction have been met.
Short-term financing
Capital
Net assets released from restriction
Accrued expenses
19. (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.
Fixed supplies budget
Return on total assets
Ratio analysis
Profit margin
20. [Total Revenues/ Total Assets]
Asset Turnover Ratio
Traditional profit centers
Liabilities
Allocation base
21. A transaction that reduces the risk of an investment.
Top-down budgeting
Dividends
Common costs
Hedge
22. Return on investment. The percentage gain or loss experienced from an investment.
ROI
Revenue enhancement
Cash equivalents
Fixed Asset Turnover
23. The rise in an economy's general level of prices.
Accrued expenses
Coupon rate
Top-down budgeting
Inflation
24. A category of income that includes unrestricted interest - dividends - and gains from the sale of unrestricted investments.
Bad debt
Dividends
Performance budget
Income from investments
25. Cash flows that occur solely as a result of undertaking a project. Basically the marginal difference between alternatives.
Non-current assets
Billing float
Incremental cash flows
Realization principle
26. 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.
Net Assets
Total asset turnover
Discount rate
Fixed assets
27. The cash flows derived from an organization's operating activities.
Administrative profit centers
Accounts payable
Operating cash flows
Discount rate
28. A security interest in one or more assets granted to lenders in a secured loan.
Asset Management ratios
Accumulated depreciation
Lien
Current ratio
29. Ratios designed to answer the question: How profitable is the organization?
Basis of Allocation
Performance measure
Profitability ratios
Centralization
30. The cumulative amount of depreciation recognized on an asset since its purchase. An asset's book value is equal to its purchase price less the amount of accumulated depreciation.
For-profit
Accumulated depreciation
Capital financing
Net Assets
31. Cash flows that have been adjusted to their present value to account for the cost of capital (over time) and the time value of money.
Discounted cash flows
Accounts receivable
Mail float
Periodic payments
32. Budgets that typically cover two to five years.
Allocation
Collections policies and procedures
Cash budget
Multiyear budget
33. The amount of inventory on hand at the end of an accounting period. See also Beginning inventory.
Ending inventory
Times interest earned
Capital investment decisions
Net Assets to Total Assets
34. {[cash + marketable securities)/[(operating expenses -depreciation)/ 365].- A ratio that indicates the number of days' worth of expenses an organization can cover with its most liquid assets (cash and marketable securities).
Days cash on hand
Other income
Comparative approach
Discount rate
35. Assets that have restrictions on their use which will be removed either with the passage of time or the occurrence of some event.
Prepaid assets
Market rate of interest
Temporarily restricted net assets
Annuity
36. Health maintenance organization. Entities that receive premium payments from enrollees with the understanding that the HMO will be financially responsible for all predefined health care required by its enrollees for a specified period of time. The he
Operating cash flows
Allowance for uncollectibles
ROI
HMO
37. A note payable that has as collateral real assets and that requires periodic payments.
Book value
Common costs
Mortgage
Statement of changes in net assets
38. Debt to be paid off in a period longer than one year.
Collection float
Long-term financing
Mission Center
Net Assets
39. Time delays in the billing and collection process. There are four categories of float: billing - collection - transit - and disbursement. An organization's goal is to optimize float for incoming revenues and outgoing bills.
Beginning inventory
Fixed assets
Float
Capital assets
40. A catchall category for miscellaneous expenses and losses not included in other categories (telephone - travel - meals - etc.).
Operating income
Other expenses
Properties and equipment
Non-regular cash flows
41. Cash inflows and outflows for the organization resulting from investing activities such as purchasing and selling investments or investing in itself by purchasing or selling non-current assets. It also includes transfers to and from the parent corpor
Days cash on hand
Net working capital
Cash flows from investing activities
Top-down/bottom-up approach
42. A form of long-term financing whereby the issuer receives cash and in return issues a note called a bond. By issuing the bond - the issuer agrees to make principal and/or interest payments on specific dates to the holders of the bond.
Asset mix
Expense budget
Bonds
Investment centers
43. Amounts given to the organization for operating purposes - such as governmental appropriations and unrestricted donations.
Opening inventory
Other support
Decentralization
Clinical cost centers
44. Financing used expressly for the purchase of non-current assets.
Capital financing
Operating cash flows
Collections policies and procedures
Lender
45. The process of distributing service center costs to mission centers - to determine the full cost of each mission center
Current assets
Allocation
Accounting period
Cost avoidance
46. 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).
Net present value
Total asset turnover
Other revenues
Deferred revenues
47. The system of accounting that recognizes revenues when cash is received and expenses when cash is paid out. See also Accrual basis of accounting.
Budget
Cash basis of accounting
Incremental cash flows
Long Term Solvency ratios
48. The unit of service which we wish to know the cost for (hospital admission - classroom hour - course - etc.)
Final cost object
Net accounts receivable
Revenue rate variance
Fixed supplies budget
49. A situation in which if one project is implemented the other(s) will not be.
Billing - collections - and disbursement policies and procedures
Mutually exclusive projects
Mortgage bonds
Effectiveness
50. An entity that sells bonds in order to raise money.
Issuer
Donation
Net assets released from restriction
Common costs