SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
ACCA Financial Management
Start Test
Study First
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. Donated assets that have restrictions on their use which will never be removed.
Permanently restricted net assets
FTE
Revenue budget
Revenue enhancement
2. Activities that provide guidance and feedback to keep the organization within its budget - such as staff meetings - regular reports - and bonuses.
Dividends
Accounts payable
Compounding
Controlling activities
3. Organizational units primarily responsible for providing services and earning a profit based on the health care services provided.
G & A expenses
Non-operating income
Traditional profit centers
Increase in unrestricted net assets
4. A budget in which line items are presented by program.
Fully allocated costs
Program budget
Net increase (decrease) in cash and cash equivalents
Increase in unrestricted net assets
5. 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.
Accounts receivable
Product diversity
Cash flows from financing activities
Incremental cash flows
6. A statement intended to guide the organization into the future by identifying the unique attributes of the organization - why it exists - and what it hopes to achieve.
Spillover cash flows
Inflation
Mission statement
Operating revenues
7. Costs (such as rent - administration - insurance - etc. that are shared by a number of services or departments and cannot easily be broken down to the services attributable to each (surgery - emergency medicine - etc.). Also called joint costs.
Strategic planning
Common costs
Basis of Allocation
Deferred revenues
8. Stated interest rate on a bond - as promised by the issuer.
HMO
Current ratio
Coupon rate
Multiyear budget
9. The expenses incurred from an organization's operating activities.
Operating expenses
Discounted cash flows
Net Assets
Long Term Solvency ratios
10. The budget used to forecast operating expenses.
Assets
Net working capital
Expense budget
Perpetuity
11. [Total assets/Net Assets]
Parent organization
Lease
Restricted donation
Leverage
12. How an organization chooses to finance its working capital needs.
Parent organization
Properties and equipment - net
Financing mix
Prepaid assets
13. 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.
Cost avoidance
Administrative profit centers
Donation
Fixed (interest) rate debt
14. (tax exempt revenue bonds)- Bonds in which the interest payments to the investor are exempt from the IRS. These bonds must be issued by an organization that has received tax exemption from the IRS and be used to fund projects that qualify as "exempt
Accounts receivable
Tax-exempt bonds
Collection float
Amortization of a loan
15. A measure of the resources used to generate revenue and/or provide a service. Often used synonymously with costs. See also Costs.
Long-term investments
Expenses
Not-for-profit
Footnotes
16. The system of accounting that recognizes revenues when earned and expenses when resources are used. This method is used by most non-governmental health care organizations. See also Cash basis of accounting.
Step-down method
Accrual basis of accounting
Average payment period
Retained earnings
17. Costs that stay the same in total over the relevant range as volume increases - but that change inversely on a per unit basis.
Collateral
Fixed costs
Expenses
Debt service coverage
18. A measure of the income earned from operating activities. It is calculated as: unrestricted revenues - gains - and other support -expenses and losses.
Operating income
Performance measure
Revenue budget
Investor
19. Opposite of the authoritarian approach. The roles and responsibilities of the budgeting process are diffused throughout the organization. Often called the participatory approach.
Comparative approach
Top-down/bottom-up approach
Current assets
Precautionary purposes
20. The amount remaining after subtracting variable costs from revenues. When the organization is not at capacity - it is the "profit" the organization makes on providing each new unit that is available to cover all other costs. Contribution margin may b
Contribution margin
Volume diversity
Matching principle
Investment grade
21. Ratios that answer the question: How well is the organization positioned to meet its short-term obligations?
Assets
Liquidity ratios
Line-item budget
FTE
22. A situation in which if one project is implemented the other(s) will not be.
Cash flows from investing activities
Cash flows from operating activities
Other income
Mutually exclusive projects
23. 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.
Liabilities
Step-down method
Intermediate Cost Object
Net assets to total assets
24. The amount expected to be collected from payors. It is calculated as: gross accounts receivable – discounts and allowances – allowance for un-collectibles.
Cash equivalents
Cost
Liquidity
Net accounts receivable
25. Demonstrates the ability to pay off long term debt
Coupon
Long Term Solvency ratios
Annuity
Balance sheet
26. Assets that have restrictions on their use which will be removed either with the passage of time or the occurrence of some event.
Horizontal analysis
Loan amortization schedule
Discounting
Temporarily restricted net assets
27. 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.
Other expenses
Ratio analysis
Profit margin
Capital investment decisions
28. The budget used to forecast - and in some cases justify - the expenditures (and in some cases the sources of financing) for non-current assets.
Breakeven point
Certainty
Co-payments
Capital budget
29. The bottom area of the financial statements that contains key information not available in the body of the statements - such as how charity is determined - the composition of investments - which assets are restricted - and the depreciation method.
Capital appreciation
Footnotes
Net Assets
Creditor
30. The elapsed time between financial statements. Common accounting periods
Strategic planning
Accounting period
Net patient service revenue
Performance budget
31. Expenses of the organization incurred in non-health-care related activities.
Non-operating revenues
Parent organization
Non-operating expenses
Quick ratio
32. An entity that gives capital to another entity in expectation of a financial or non-financial return.
Loan amortization schedule
Balance sheet
Strategic planning
Investor
33. 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.
Asset Management ratios
Investment centers
Increase in unrestricted net assets
Capital appreciation
34. Revenues generated from an organization's operating activities.
Asset Management ratios
Operating revenues
Compounding
Hedge
35. I) Calculating interest using the compound interest method. 2) Adjusting for the time value of money forward in time to a future value. See also Compound interest method and Discounting.
Increase in unrestricted net assets
Expense cost variance
Common costs
Compounding
36. 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.
Fixed costs
Operating budget
Discounted cash flows
Not-for-profit
37. 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).
Program budget
Days cash on hand
Fixed supplies budget
Budget
38. The amount of time between when an organization receives a service and pays for it.
Disbursement float
Accrued expenses
Dividends
Asset mix
39. The resources owned by the organization. It is one of the three major categories on the balance sheet.
Bad debt
Prepaid assets
Assets
Capital appreciation
40. A benefit paid for in advance (rent - insurance - etc.). Also called prepaid expense.
Operating revenues
Basis of Allocation
Prepaid assets
Coupon rate
41. Ratios that measure how efficiently an organization is using its assets to produce revenues.
Efficiency
Activity ratios
Expense budget
Breakeven point
42. 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.
Net Assets to Total Assets
Coupon payment
Capital investment decisions
Step Down
43. 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.
Non-operating income
Line of credit
Net accounts receivable
Operating income
44. Previously restricted assets no longer restricted because the terms of the restriction have been met.
HMO
Net assets released from restriction
Decentralization
Assets
45. 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.
Asset Turnover Ratio
Debt service coverage
Operating activities
Billing float
46. I) Organizations that have a special designation because they provide goods or services that result in needed community benefit. In turn - such organizations are not required to pay most taxes. 2) The designation of an organization as one that is not
Loan amortization schedule
Revenue rate variance
Not-for-profit
Financing mix
47. Ratios designed to answer the question: How profitable is the organization?
Final cost object
Profitability ratios
Realization principle
Deferred revenues
48. {[cash + marketable securities)/[(operating expenses -depreciation)/ 365].- A ratio that indicates the number of days' worth of expenses an organization can cover with its most liquid assets (cash and marketable securities).
Days cash on hand
Profitability ratios
Long-term investments
Mutually exclusive projects
49. [Surplus/Operating Revenues]
Incremental cash flows
Profit margin
Creditor
Current assets
50. [(excess of revenues over expenses + interest expense + depreciation expense)/(interest expense + principal payments))- A ratio that measures an organization's ability to pay back a loan. In for-profit organizations - it is calculated as: (net income
Capital investment decisions
Non-operating revenues
Debt service coverage
Cash basis of accounting