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Test your basic knowledge |
ACCA Financial Management
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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. Activities that provide guidance and feedback to keep the organization within its budget - such as staff meetings - regular reports - and bonuses.
Book value
Allocation base
Controlling activities
Asset Management ratios
2. Costs that stay the same in total over the relevant range as volume increases - but that change inversely on a per unit basis.
Fixed costs
Asset Management ratios
Cost Accounting
Dividends
3. Revenues of the organization earned in non-healthcare related activities.
Expense budget
Non-operating revenues
Efficiency
Operating revenues
4. (non-operating revenues/total operating revenues)- A ratio that reflects how dependent the organization is on non-patient care related net income.
Cost object
MV
Bond rating
Non-operating ratio
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.
Return on net assets
Cost object
Certainty
Accumulated depreciation
6. General and administrative expenses. Operating expenses that are not contained in the labor or supplies budgets.
Creditor
Line of credit
Expense volume variance
G & A expenses
7. An organization whose profits can be distributed outside the organization and must pay taxes. Also called investor-owned organizations.
Tax-exempt bonds
Activity Based Costing
Collateral
For-profit
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.
Performance measure
Operating margin
Cost
Annuity
9. Service center costs are allocated to both mission centers and other service centers
Net Assets
Step Down
Indirect costs
Excess of revenues over expenses
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
Top-down budgeting
Opportunity cost
Total revenue
Inflation
11. A legal obligation to pay the holder of the note or lien.
Excess of revenues over expenses
Long-term debt to net assets ratio
Quick ratio
Notes payable
12. A situation in which if one project is implemented the other(s) will not be.
Mutually exclusive projects
Horizontal analysis
Revenue rate variance
Net assets released from restriction
13. How an organization chooses to finance its working capital needs.
Cash flows from financing activities
Revenues
Financing mix
Net proceeds from a bond issuance
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.
Ending inventory
Disbursement float
Current ratio
Coupon payment
15. A security interest in one or more assets granted to lenders in a secured loan.
Transaction
Prepaid assets
Lien
Acid test ratio
16. The budget that forecasts the operating and - in some cases - the non- operating revenues that will be earned during the budget period.
Spillover cash flows
Annuity
Net increase (decrease) in cash and cash equivalents
Revenue budget
17. Ratios that measure how efficiently an organization is using its assets to produce revenues.
Activity ratios
Contribution margin
Average Days Inventory
Non-operating expenses
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.
Bad debt
Liquidity
Total asset turnover
Debt to equity
19. Proceeds lost by foregoing other opportunities.
Mission Center
Asset Turnover Ratio
Opportunity cost
Common costs
20. Gross proceeds less the underwriter's fee and other issuance fees.
Net proceeds from a bond issuance
Program budget
Net Assets to Total Assets
Total revenue
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.
Revenue rate variance
Discounted cash flows
Accounting period
Top-down/bottom-up approach
22. Expenses that have been incurred - but not yet paid.
Other expenses
Cash and cash equivalents
Accrued expenses
Balance sheet
23. Current assets. Net working capital equals current assets –current liabilities.
Mail float
Working capital
Total asset turnover
Net proceeds from a bond issuance
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.
Collateral
Fully allocated costs
Accounts payable
Collections policies and procedures
25. The rate of return required to undertake a project. Also called the hurdle rate or discount rate.
Lease
Payback
Cash equivalents
Cost of capital
26. The costs of a service after taking into account its direct and fair share of allocated costs.
Clinical cost centers
Fully allocated costs
Line-item budget
Other expenses
27. An entity that sells bonds in order to raise money.
Issuer
Capital structure decision
Bond rating
Cash flows from operating activities
28. Donated assets that have restrictions on their use which will never be removed.
Periodic payments
Basic accounting equation
Permanently restricted net assets
Footnotes
29. Amounts earned by the organization from the provision of service or sale of goods.
Matching principle
Revenues
Not-for-profit
Mutually exclusive projects
30. Costs that are traced to a cost object. See also Indirect costs and Cost object.
Single/Simple Step
Efficiency
Direct costs
Liquidity 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.
Profitability ratios
Administrative profit centers
Activity ratios
Beginning inventory
32. The cost of a capital asset (i.e. building or equipment) minus accumulated depreciation.
Cash budget
Footnotes
Creditor
Book value
33. Traces indirect costs to activity that uses them. Overhead collected in pools and distributed to cost object by cost drivers.
Acid test ratio
Strategic decisions
Activity Based Costing
Tangible assets
34. The cost of activities that take place to produce the final cost object
Donation
Intermediate Cost Object
Non-current liabilities
Beginning inventory
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.
Cash budget
Net assets to total assets
Issuer
Net assets released from restriction
36. Properties and equipment less accumulated depreciation.
Debt to equity
Basis of Allocation
Collections policies and procedures
Properties and equipment - net
37. A certificate attached to a bond representing the amount of interest to be paid to the holder.
Non-current liabilities
Creditor
Coupon
Strategic decisions
38. [Net Accounts Receivable/(Revenue/356)]
Allocation base
Decentralization
Average Days Receivable
Activity ratios
39. Ratios that measure how the organization's assets are financed and/or whether the organization can take on new debt.
Investment grade
Fixed costs
Capital structure ratios
Cash budget
40. Financial obligations that will be paid off over a time period longer than one year
Non-current liabilities
Days cash on hand
Cash and cash equivalents
Collections policies and procedures
41. Amounts due to the organization from patients - third parties - and others.
Working capital
Accounts receivable
Performance measure
Fixed Asset Turnover
42. A budget in which line items are presented by program.
Program budget
Cash basis of accounting
Mission statement
Investor
43. A security whose interest rate does not change during the lifetime of the bond.
Decentralization
Revenues
Fixed (interest) rate debt
Activity ratios
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.
Mission statement
Cost avoidance
Performance measure
Indirect costs
45. The unit of service which we wish to know the cost for (hospital admission - classroom hour - course - etc.)
Non-current assets
Final cost object
Tax-exempt bonds
Asset mix
46. A borrower's assets on which a lender has legal claim if a borrower defaults on a loan.
Collateral
Discount rate
Fixed asset turnover
Activity Based Costing
47. Organizational units responsible for providing health care related services to clients - patients - or enrollees - and the related costs thereof.
Profit margin
Clinical cost centers
Liquidity
Breakeven point
48. Decisions regarding the relative amount of debt and equity used to finance the organization's non-current assets.
Capital structure decision
Controlling activities
Comparative approach
Interest
49. Highly liquid current assets such as interest-bearing savings and checking accounts.
Investment grade
Inflation
Bonds
Cash equivalents
50. Budgets that typically cover two to five years.
Beginning inventory
Multiyear budget
Total asset turnover
Capital assets