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 amount of supplies used to provide a service or good.
Breakeven point
Loan amortization schedule
Collection float
Cost of goods sold
2. 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.
Net present value
Traditional profit centers
Bonds
Discounting
3. [Total Revenues/ Total Assets]
Coupon
Financing activities
Asset Turnover Ratio
Parent organization
4. The method by which to distribute service center costs to mission centers; in general the one that most accurately measures use by the cost centers that receives its services (food service - # of meals - hospital laundry - # of pounds processed)
Balance sheet
Lender
Basis of Allocation
Short-term financing
5. The cash flows derived from an organization's operating activities.
Accounting period
Operating cash flows
Float
Contribution margin
6. The cost of activities that take place to produce the final cost object
Administrative cost centers
Cost centers
Intermediate Cost Object
Volume diversity
7. Organizational units primarily responsible for providing services and earning a profit based on the health care services provided.
Budget
Debt to equity
Traditional profit centers
Expenses
8. Generally - assets that will be used or consumed within one year. Some organizations use a period of less than one year.
Current assets
Accrual basis of accounting
Profitability ratios
Acid test ratio
9. Literally non-movable assets. Generally used to refer to buildings and equipment.
Fixed supplies budget
Fixed assets
SWOT analysis
Program budget
10. Cash flows that occur solely as a result of undertaking a project. Basically the marginal difference between alternatives.
Times interest earned
Billing float
Bad debt
Incremental cash flows
11. 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.
Inflation
Coupon payment
Non-regular cash flows
Non-operating ratio
12. A method to evaluate the feasibility of an investment by determining how long it would take until the initial investment is recovered. This method does not account for the time value of money.
Payback
Return on net assets
Loan amortization schedule
ROI
13. Financing that will be paid back in less than one year.
Cost of goods sold
FTE
Short-term financing
Opening inventory
14. The cost of the supplies on hand at the beginning of the year.
Return on total assets
Allowance for uncollectibles
Opening inventory
Days cash on hand
15. Capital investment decisions designed to increase an organization's strategic position.
Operating income
Ending inventory
Strategic decisions
Asset Turnover Ratio
16. (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;
Restricted donation
Hedge
Capital financing
Return on net assets
17. What a series of equal payments in the future is worth today taking into account the time value of money.
Fixed labor budget
Non-operating revenues
Present value of an annuity
Cash flows from operating activities
18. 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.
Service centers
Quick ratio
Retained earnings
Current assets
19. The elapsed time between financial statements. Common accounting periods
Accounting period
Strategic decisions
Operating expenses
Statement of cash flows
20. Series of payments over time - such as interest paid to bondholders.
Dividends
Statement of cash flows
Periodic payments
Fixed asset turnover
21. When products are manufactured in batches in different sizes - and overhead activities are affected by the size of the batch being produced
Performance budget
Expense cost variance
Volume diversity
Collection float
22. 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
Capital financing
Step Down
Statement of operations
For-profit
23. The purchase of assets with contributed and internally generated funds. See also Debt financing.
Equity financing
Non-regular cash flows
Interest
Beginning inventory
24. The degree of dispersion of responsibility within an organization. See also Centralization.
Opportunity cost
Decentralization
Discounted cash flows
Opening inventory
25. The amount of inventory on hand at the beginning of an accounting period. See also Ending inventory.
Line of credit
Long Term Solvency ratios
Compounding
Beginning inventory
26. 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.
Net assets released from restriction
Donation
Revenue rate variance
Bad debt
27. The budget used to forecast - and in some cases justify - the expenditures (and in some cases the sources of financing) for non-current assets.
Expense volume variance
Properties and equipment - net
Long-term debt - net of current portion
Capital budget
28. [(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
Discounting
Expense volume variance
Time value of money
Other revenues
29. 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.
Balance sheet
Budget
FV
Notes payable
30. An organization whose profits can be distributed outside the organization and must pay taxes. Also called investor-owned organizations.
Permanently restricted net assets
Revenue rate variance
For-profit
Activity ratios
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.
Non-regular cash flows
Interest
Tangible assets
Administrative profit centers
32. Organizational units responsible for providing services and controlling their costs. There are two major types: clinical cost centers and administrative cost centers.
Asset Turnover Ratio
Cost centers
Tangible assets
Basis of Allocation
33. Amounts earned by the organization from the provision of service or sale of goods.
Not-for-profit
Revenues
Expense budget
Budget variance
34. The elapsed time between when the patient or third-party payor sends the payment and the time the health care provider receives the payment.
Capital financing
Mail float
Cost of goods sold
Line-item budget
35. Expenses of the organization incurred in non-health-care related activities.
Tax-exempt bonds
Non-operating expenses
Long Term Solvency ratios
Billing - collections - and disbursement policies and procedures
36. A category of income that includes unrestricted interest - dividends - and gains from the sale of unrestricted investments.
Income from investments
Mortgage
Cash equivalents
Common costs
37. Assets that have restrictions on their use which will be removed either with the passage of time or the occurrence of some event.
Temporarily restricted net assets
Strategic planning
Expenses
Operating margin
38. Operating income not reported elsewhere under revenues - gains - and other support.
IRR
Cash flows from operating activities
Program budget
Other revenues
39. Ratios designed to answer the question: How profitable is the organization?
Current assets
Financing mix
Profitability ratios
Controlling activities
40. The cost of a capital asset (i.e. building or equipment) minus accumulated depreciation.
Book value
Hedge
Operating budget
Fixed supplies budget
41. Previously restricted assets no longer restricted because the terms of the restriction have been met.
Certainty
Net assets released from restriction
Comparative approach
Strategic planning
42. 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.
Centralization
Cost centers
Investment grade
Times interest earned
43. An investment that generates an annuity for an indefinite period of time - basically forever.
Cost avoidance
Perpetuity
Expense volume variance
Coupon payment
44. Activities that provide guidance and feedback to keep the organization within its budget - such as staff meetings - regular reports - and bonuses.
Long Term Solvency ratios
Coupon
Controlling activities
Accounts receivable
45. Gross proceeds less the underwriter's fee and other issuance fees.
Return on total assets
Net proceeds from a bond issuance
Donor
Allocation base
46. 1) The resources used to produce a good or service. 2) The amount of cash given up in a transaction. 3) Price. The first definition is based on accrual accounting and the second on cash accounting.
Notes payable
Footnotes
Cost
Net patient service revenue
47. 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.
Investor
Cost avoidance
Comparative approach
Profitability ratios
48. Amounts given to the organization for operating purposes - such as governmental appropriations and unrestricted donations.
Other support
Other income
G & A expenses
Fixed assets
49. Decisions regarding the acquisition of capital assets. The capital investment decision should be separate from the decision on how to finance capital assets.
Hedge
Capital investment decisions
Cost centers
Billing float
50. 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 budget
Breakeven point
Fully allocated costs