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






2. Costs that stay the same in total over the relevant range as volume increases - but that change inversely on a per unit basis.






3. Revenues of the organization earned in non-healthcare related activities.






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






5. 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.






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






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






8. A series of equal cash flows made or received at regular time intervals. Ordinary annuities occur at the end of each period whereas annuities due occur at the beginning of each period.






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






10. That process of budgeting where the environmental assessment and planning of future activities are largely decided upon by a few individuals - and the budget is essentially dictated to the rest of the organization. Often called authoritarian approach






11. A legal obligation to pay the holder of the note or lien.






12. A situation in which if one project is implemented the other(s) will not be.






13. How an organization chooses to finance its working capital needs.






14. [current assets/current liabilities].- This liquidity ratio measures the proportion of all current assets to all current liabilities to determine how easily current debt can be paid off. It is one of the most commonly used ratios.






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






16. The budget that forecasts the operating and - in some cases - the non- operating revenues that will be earned during the budget period.






17. Ratios that measure how efficiently an organization is using its assets to produce revenues.






18. An amount owed to the organization that will not be paid. Charity care is not considered a bad debt since nothing is owed to the organization for services provided.






19. Proceeds lost by foregoing other opportunities.






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






21. The amount of the total revenue variance that occurs because the actual average rate charged varies from that originally budgeted. It can be calculated using the formula: (actual rate -budgeted rate) x actual volume.






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






23. Current assets. Net working capital equals current assets –current liabilities.






24. Policies and procedures that address when and how to collect revenues - such as paying at time of service - sending accounts to collection agencies - and writing off accounts as bad debt.






25. The rate of return required to undertake a project. Also called the hurdle rate or discount rate.






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






27. An entity that sells bonds in order to raise money.






28. Donated assets that have restrictions on their use which will never be removed.






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






30. Costs that are traced to a cost object. See also Indirect costs and Cost object.






31. 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.






32. The cost of a capital asset (i.e. building or equipment) minus accumulated depreciation.






33. Traces indirect costs to activity that uses them. Overhead collected in pools and distributed to cost object by cost drivers.






34. The cost of activities that take place to produce the final cost object






35. 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.






36. Properties and equipment less accumulated depreciation.






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






38. [Net Accounts Receivable/(Revenue/356)]






39. Ratios that measure how the organization's assets are financed and/or whether the organization can take on new debt.






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






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






42. A budget in which line items are presented by program.






43. A security whose interest rate does not change during the lifetime of the bond.






44. 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.






45. The unit of service which we wish to know the cost for (hospital admission - classroom hour - course - etc.)






46. A borrower's assets on which a lender has legal claim if a borrower defaults on a loan.






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






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






49. Highly liquid current assets such as interest-bearing savings and checking accounts.






50. Budgets that typically cover two to five years.