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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. 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






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






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






4. 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.






5. Capital investment decisions designed to increase the operational capability of a health care organization.






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






7. Ratios that answer the question: How well is the organization positioned to meet its short-term obligations?






8. An investment that generates an annuity for an indefinite period of time - basically forever.






9. The difference between current assets and current liabilities.






10. [Total Revenues/ Total Assets]






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






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






13. The resources owned by the organization. It is one of the three major categories on the balance sheet.






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






15. The organization's legal obligations to pay its creditors. Liabilities are classified as current and non-current. Liabilities are one of the three major categories on the balance sheet and are part of the fundamental accounting equation.






16. 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.






17. (excess of revenues over expenses/total assets)- A measure of how much profit is earned for each dollar invested in assets. In for-profit organizations it is called return on assets and is calculated as: net income/assets.






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






19. The gradual process of paying off debt through a long series of equal periodic payments. Each payment covers a portion of the principal plus current interest. The periodic payments are equal over the lifetime of the loan - but the proportion going to






20. Current assets. Net working capital equals current assets –current liabilities.






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






22. The degree to which standards are met.






23. IA category of non-current assets not intended to be used for operations - but only for capital appreciation and dividends - and that will be held for a period longer than one year.






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






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






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






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






28. The ease and speed with which an asset can be turned into cash.






29. The budget used to forecast operating expenses.






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






31. Price times total quantity.






32. 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.






33. The purchase of assets with contributed and internally generated funds. See also Debt financing.






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






35. 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.






36. Assets = Liabilities + Net Assets (aka Equity).






37. [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.






38. The system of accounting that recognizes revenues when cash is received and expenses when cash is paid out. See also Accrual basis of accounting.






39. The current traded rate for similar risk securities.






40. A contract between a lender and a potential borrower preauthorizing the potential borrower's right to borrow up to a specific amount on request as long as they fulfill the terms and conditions of the contract. Also called a letter of credit.






41. Directly related to the purposes of the organization and the delivery of services






42. Demonstrates the extent to which the organization is earning money from its assets. Not usually as imp for NPs - varies w/ NP.






43. Expenses of the organization incurred in non-health-care related activities.






44. If a project is undertaken - these cash flows are the indirect increases or decreases in cash flows that will occur elsewhere in the organization.






45. The rise in an economy's general level of prices.






46. A measure of the income earned from operating activities. It is calculated as: unrestricted revenues - gains - and other support -expenses and losses.






47. Costs that stay the same in total over the relevant range as volume increases - but that change inversely on a per unit basis.






48. [(cash + marketable securities + net accounts receivable)/current liabilities)- A measure of the organization's liquidity.






49. 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






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