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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 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.






2. 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).






3. Operating income plus other income. This is analogous to net income before taxes in for-profit entities.






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






5. 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.






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






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






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






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






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






11. Supplementing traditional sources of revenue with new sources.






12. 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






13. A note payable that has as collateral real assets and that requires periodic payments.






14. Properties and equipment less accumulated depreciation.






15. Bonds that hold the health care provider's real property and equipment as security or collateral in case of default.






16. The section of the statement of cash flows that reports the total change in cash and cash equivalents over the accounting period.






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






18. The current traded rate for similar risk securities.






19. [operating income/total operating revenues]- The proportion of profit remaining after subtracting total operating expenses from operating revenues.






20. Budgets that typically cover two to five years.






21. Financial and non-financial standards against which organizational performance is measured.






22. 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.






23. 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






24. The balance sheet category that includes actual money on hand as well as money equivalents - such as savings and checking accounts. It excludes cash restricted as to its use for something other than current operations.






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






26. 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






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






28. The amount of inventory on hand at the end of an accounting period. See also Beginning inventory.






29. A contract in which the lessee (user) agrees to pay the leassor (owner) a specific amount over a period of time for the use of an asset.






30. 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






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






32. 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.






33. A balance sheet account that estimates the total amount of customer accounts receivable that will not be collected. It is also called allowance for bad debts and allowance for doubtful accounts.






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






35. Debt to be paid off in a period longer than one year.






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






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






38. A measure of the resources used to generate revenue and/or provide a service. Often used synonymously with costs. See also Costs.






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






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






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






42. 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.






43. [Surplus/Operating Revenues]






44. One of the four major financial statements. It explains the changes in net assets from one period to the next on the balance sheet. Also called statement of changes in owners' equity in a for-profit business.






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






46. An approach to analyzing the financial condition of an organization based on ratios calculated from line items found in the financial statements. There are four major categories of ratios: liquidity - profitability - capitalization - and activity.






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






48. 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.






49. 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.






50. [(cash + marketable securities)/current liabilities). A liquidity ratio that measures how much cash and marketable securities are available to payoff all current liabilities.