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






2. A category of income that includes unrestricted interest - dividends - and gains from the sale of unrestricted investments.






3. The costs of a service after taking into account its direct and fair share of allocated costs.






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






5. Gross proceeds less the underwriter's fee and other issuance fees.






6. (non-operating revenues/total operating revenues)- A ratio that reflects how dependent the organization is on non-patient care related net income.






7. The cost of the supplies on hand at the beginning of the year.






8. Private entity or individual who makes a donation






9. 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.






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






11. [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.






12. [Net Accounts Receivable/(Revenue/356)]






13. The process of adjusting for the time value of money backward in time to present value. See also Compounding.






14. One of the four major financial statements. It answers the question: Where did our cash come from and where did it go during the accounting period?






15. A section of the statement of cash flows used to report such activities as borrowing and paying back loans.






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






17. When products are manufactured in batches in different sizes - and overhead activities are affected by the size of the batch being produced






18. 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






19. Monies received that have not yet been earned. One of the most common deferred revenues is the receipt of capitation on the basis of per member per month (PMPM).






20. Any product - service - customer - contract - project - process or other work unit for which a separate cost measurement is desired.






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






22. Assets that have a useful life greater than one year - such as plant - property - and equipment. Plant and equipment are depreciated over time; land (property) is not.






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






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






25. The revenue and expense budgets of an organization.






26. 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






27. 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.






28. A donation that has conditions which must be satisfied. See also Temporarily restricted net assets.






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






30. 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.






31. [total revenues/net plant & equipment]- This ratio measures the number of dollars generated for each dollar invested in an organization's plant and equipment.






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






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






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






35. 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






36. Each service center






37. A good or service provided in return for some type of compensation.






38. Stated interest rate on a bond - as promised by the issuer.






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






40. An estimate/measure of how much a tangible asset (such as plant or equipment) has been "used up" during an accounting period. It is an expense that does not require any cash outflow under the accrual basis of accounting. See also Accumulated deprecia






41. The amount expected to be collected from payors. It is calculated as: gross accounts receivable – discounts and allowances – allowance for un-collectibles.






42. The changes in cash resulting from the normal operating activities of the organization.






43. 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






44. The difference between the initial amount paid for an investment and the related future cash inflows after they have been adjusted (discounted) by the cost of capital.






45. 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.






46. 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.






47. Looks at the percentage change in a line item's value from one year to the next using the formula: [(subsequent year -base year)/base year) x 100. See also Vertical analysis.






48. 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






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






50. Proceeds lost by foregoing other opportunities.