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






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






3. The amount of time between when an organization receives a service and pays for it.






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






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






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






7. 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.






8. 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.






9. 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.






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






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






12. Any product - service - customer - contract - project - process or other work unit for which a separate cost measurement is desired.






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






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






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






16. Generally - assets that will be used or consumed within one year. Some organizations use a period of less than one year.






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






18. A certificate attached to a bond representing the amount of interest to be paid to the holder.






19. Budgets that typically cover two to five years.






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






21. What a series of equal payments in the future is worth today taking into account the time value of money.






22. [total revenues/net plant & equipment]- This ratio measures the number of dollars generated for each dollar invested in an organization's plant and equipment.






23. Requiring the patient to pay part of his/her health care bill. These payments are used to prevent over-utilization of services.






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






25. Financial obligations that will be paid off over a time period longer than one year






26. 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






27. A security interest in one or more assets granted to lenders in a secured loan.






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






29. Agencies that assess the "credit worthiness" of an organization. The two major rating agencies are Moody's and Standard & Poor.






30. An assignment or grading of the likelihood that an organization will not default on a bond.






31. The central document of the planning/control cycle. It identifies revenues and resources that will be needed by an organization to achieve its goals and objectives.






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






33. Bonds that have received a rating ranging from AM to BBB (at S&P) - or Aaa to Bbb (Moody's) - of which the highest are called quality ratings.






34. The amount the holder of the coupon receives periodically - usually semiannually. Over the year - it equals the coupon rate times the face value of the bond.






35. 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.






36. The costs of a service after taking into account its direct and fair share of allocated costs.






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






38. General and administrative expenses. Operating expenses that are not contained in the labor or supplies budgets.






39. [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?






40. 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.






41. {current liabilities/[(total expenses






42. Amounts the organization is obligated to pay others - including suppliers and creditors.






43. Non-operating income.






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






45. 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






46. 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






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






48. Cash flows that occur solely as a result of undertaking a project. Basically the marginal difference between alternatives.






49. I) The cost to borrow money. It can be expressed in dollars or as a percentage. 2) Payment to creditors for the use of money on credit.






50. The section of the expense budget that forecasts salary and benefits.