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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. The revenue and expense budgets of an organization.






2. The difference between current assets and current liabilities.






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






4. Irregular cash flows - typically occurring at the end of the life of a project.






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






6. Setting aside cash to meet unexpected demands - such as unexpected maintenance of a facility or piece of equipment.






7. {current liabilities/[(total expenses






8. [Surplus/Operating Revenues]






9. The cash flows derived from an organization's operating activities.






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






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






12. The increase in the value of an investment from the time it is purchased until the time it is sold.






13. Budgets that typically cover two to five years.






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






15. [Inventory/ (Cost of Goods Sold/365)]






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






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






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






19. 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.






20. 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.






21. [Total assets/Net Assets]






22. 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






23. Assets that have restrictions on their use which will be removed either with the passage of time or the occurrence of some event.






24. Being subject to sanctions with respect to carrying out responsibilities.






25. Recording expenses associated with making revenue at the same time as revenues are recognized






26. An organization's financial obligations that are to be paid within one year.






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






28. The elapsed time between when the patient or third-party payor sends the payment and the time the health care provider receives the payment.






29. [long-term debt/net assets]- A measure of the proportion of an organization's assets that are financed by debt as opposed to equity. In for-profit organizations - it is called the long-term debt to equity ratio and is calculated using the formula [lo






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






31. Organizational units responsible for providing services and controlling their costs. There are two major types: clinical cost centers and administrative cost centers.






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






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






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






35. [Total Revenues/ Total Assets]






36. [(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






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






38. The degree to which standards are met.






39. The total amount of multiyear debt due in future years.






40. The delay between providing the service and getting the bill to the patient or third party. There are two aspects of billing float: assembling the bill and delivering the bill to the patient or third-party payor.






41. The section of the expense budget that forecasts the cost of those supplies that will not vary as a direct result of changes in the amount of services provided (such as administrative office supplies).






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






43. The bottom line in the statement of operations. It includes such items as operating and non-operating income - contributions of long-lived assets - transfers to parent - and extraordinary items.






44. process of measuring the resources (costs) used to produce results.






45. Series of payments over time - such as interest paid to bondholders.






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






47. Supplementing traditional sources of revenue with new sources.






48. 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.






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






50. A catchall category for miscellaneous expenses and losses not included in other categories (telephone - travel - meals - etc.).