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. 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.






2. 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.






3. The difference between what was planned (budgeted) and what was achieved (actual).






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






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






6. The percentage of each asset relative to total assets.






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






8. Assets that provide service for a period exceeding one year. Sometimes referred to as long-term assets.






9. Funds provided by a private entity or individual without the requirement of repayment. Donations can either be restricted or unrestricted.






10. What a series of equal payments in the future is worth today taking into account the time value of money.






11. An entity that temporarily grants the use of money or an asset to another in return for compensation - usually in the form of interest.






12. 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






13. Cash flows that have been adjusted to their present value to account for the cost of capital (over time) and the time value of money.






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






15. [(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






16. Return on investment. The percentage gain or loss experienced from an investment.






17. A method of allocating costs that are not directly paid for (utilities - rent - administration) into those products or services to which payment is attached (day of care - a brief visit). See also Activity-based costing.






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






19. Costs not traced to a cost object - but that must eventually be allocated across cost objects. See also Direct costs.






20. The process of distributing service center costs to mission centers - to determine the full cost of each mission center






21. 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.






22. [Net Assets/Total Assets]. This ratio reflects the proportion of total assets financed by equity.






23. Literally non-movable assets. Generally used to refer to buildings and equipment.






24. Financing used expressly for the purchase of non-current assets.






25. [(actual cost per unit -budgeted cost per unit) x actual volume).- The difference between the variable expenses that would have been expected at the actual volume and those actually incurred.






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






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






28. The category of assets summarizing the amount of the major capital investments of the facility in plant - property - and equipment (PP&E). Plant means buildings - property is land - and equipment includes a wide variety of durable items from beds to






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






30. The income (operating revenues -operating expenses) earned in non-health-care related activities.






31. [Total Liabilities/ Net assets]






32. Capital investment decisions designed to increase an organization's strategic position.






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






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






35. Amounts given to the organization for operating purposes - such as governmental appropriations and unrestricted donations.






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






37. Budgets that typically cover two to five years.






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






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






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






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






42. The elapsed time between financial statements. Common accounting periods






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






44. 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.






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






46. Generally - assets that will be used or consumed within one year. Some organizations use a period of less than one year.






47. When different products use overhead related services in different proportions - and when the costs of those services are significantly different - The situation present when products consume overhead in different proportions.






48. The absence of risk in an investment.






49. The activities of an organization directly related to its main line of business.






50. The difference between current assets and current liabilities.