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. 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.
Billing float
Long Term Solvency ratios
Non-operating income
Average Days Receivable
2. Tools used to increase the amount of cash available to the organization. The objective of billing - credit - and collection policies is to accelerate cash receipts; the objective of cash disbursement policies is to slow down cash outflows.
Operating expenses
Permanently restricted net assets
Long-term investments
Billing - collections - and disbursement policies and procedures
3. 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.
Permanently restricted net assets
Common costs
Liquidity
Top-down/bottom-up approach
4. Donated assets that have restrictions on their use which will never be removed.
Permanently restricted net assets
Breakeven point
Operating cash flows
Performance measure
5. Agencies that assess the "credit worthiness" of an organization. The two major rating agencies are Moody's and Standard & Poor.
Other income
Assets
Other expenses
Bond rating agency
6. The ease and speed with which an asset can be turned into cash.
Notes payable
Coupon rate
Capital structure decision
Liquidity
7. Amounts earned by the organization from the provision of service or sale of goods.
Present value of an annuity
Net proceeds from a bond issuance
Revenues
Cash equivalents
8. Amounts due to the organization from patients - third parties - and others.
Product diversity
Temporarily restricted net assets
Accounts receivable
Short-term financing
9. 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.
Accumulated depreciation
Dividends
Fixed assets
Allocation base
10. The expenses incurred from an organization's operating activities.
Non-operating revenues
Responsibility center
Operating expenses
Bonds
11. 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.
Cash and cash equivalents
Investment centers
Permanently restricted net assets
Cash flows from operating activities
12. Amounts given to the organization for operating purposes - such as governmental appropriations and unrestricted donations.
Accounts payable
MV
Other support
Billing float
13. A measure of the income earned from operating activities. It is calculated as: unrestricted revenues - gains - and other support -expenses and losses.
Operating income
Cost centers
Mail float
Liquidity
14. The purchase of assets with contributed and internally generated funds. See also Debt financing.
Operating revenues
Fixed asset turnover
Allowance for uncollectibles
Equity financing
15. I) The cost to borrow money. It can be expressed in dollars or as a percentage. 2) Payment to creditors for the use of money on credit.
Excess of revenues over expenses
Interest
Decentralization
Float
16. process of measuring the resources (costs) used to produce results.
Investment grade
Cost Accounting
Cost centers
Accountability
17. 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.
Temporarily restricted net assets
Donation
Lease
Ratio analysis
18. An assignment or grading of the likelihood that an organization will not default on a bond.
Bond rating
Efficiency
Annuity
Strategic planning
19. Directly related to the purposes of the organization and the delivery of services
Assets
Lender
ROI
Mission Center
20. Amounts the organization is obligated to pay others - including suppliers and creditors.
Issuer
Accounts payable
Cost
HMO
21. Highly liquid current assets such as interest-bearing savings and checking accounts.
Long-term financing
Increase in unrestricted net assets
Step Down
Cash equivalents
22. [operating income/total operating revenues]- The proportion of profit remaining after subtracting total operating expenses from operating revenues.
Indirect costs
Dividends
Operating margin
Accrued expenses
23. Organizational units responsible for their own costs that provide administrative support to other organizational units or the organization
Cost of goods sold
Administrative cost centers
Increase in unrestricted net assets
Product diversity
24. Any product - service - customer - contract - project - process or other work unit for which a separate cost measurement is desired.
Cost object
Direct costs
Incremental cash flows
Operating expenses
25. 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.
Line of credit
Ratio analysis
Bond rating agency
Net present value
26. 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
Accounts receivable
Non-operating expenses
Long-term financing
Depreciation
27. Responsibility centers responsible for making a certain return on investments.
Asset Management ratios
Administrative profit centers
Allocation base
Investment centers
28. 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.
Other revenues
Strategic decisions
Discounted cash flows
Cash basis of accounting
29. The elapsed time between financial statements. Common accounting periods
Times interest earned
Average Days Inventory
Step-down method
Accounting period
30. [Total assets/Net Assets]
Long-term debt - net of current portion
Time value of money
Leverage
Perpetuity
31. Organizational units primarily responsible for providing services and earning a profit based on the health care services provided.
Balance sheet
Traditional profit centers
Prepaid assets
Operating cash flows
32. Organizational unit given the responsibility to carry out one or more tasks and/or achieve one or more outcomes.
Depreciation
Hedge
Cash equivalents
Responsibility center
33. The budget used to forecast - and in some cases justify - the expenditures (and in some cases the sources of financing) for non-current assets.
Bad debt
Capital budget
Market rate of interest
Horizontal analysis
34. The amount expected to be collected from payors. It is calculated as: gross accounts receivable – discounts and allowances – allowance for un-collectibles.
Net accounts receivable
Net Assets
Fixed costs
Accounts payable
35. Organizational units responsible for providing services and controlling their costs. There are two major types: clinical cost centers and administrative cost centers.
Non-regular cash flows
Cost centers
Mission statement
Service centers
36. The percentage of each asset relative to total assets.
Asset mix
Non-current assets
Return on total assets
Opportunity cost
37. 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.
Service centers
Current ratio
Expansion decisions
Profitability ratios
38. The rise in an economy's general level of prices.
Horizontal analysis
FV
Inflation
Periodic payments
39. An entity that owns other companies.
Parent organization
Single/Simple Step
Incremental cash flows
Fixed asset turnover
40. Requiring the patient to pay part of his/her health care bill. These payments are used to prevent over-utilization of services.
Co-payments
Volume diversity
Basic accounting equation
Comparative approach
41. A legal obligation to pay the holder of the note or lien.
Non-operating ratio
Net working capital
Excess of revenues over expenses
Notes payable
42. Previously restricted assets no longer restricted because the terms of the restriction have been met.
Base Budget
Excess of revenues over expenses
Liquidity ratios
Net assets released from restriction
43. The increase in the value of an investment from the time it is purchased until the time it is sold.
Capital appreciation
Statement of cash flows
Line-item budget
Amortization of a loan
44. An entity that is owed money for lending funds or supplying goods or services on credit.
Operating revenues
Days cash on hand
Creditor
Market rate of interest
45. A good or service provided in return for some type of compensation.
Cost centers
Tangible assets
Lien
Transaction
46. A certificate attached to a bond representing the amount of interest to be paid to the holder.
Final cost object
Breakeven point
Coupon
Days cash on hand
47. 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
Perpetuity
Profitability ratios
Step Down
Contribution margin
48. 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
Cash flows from investing activities
Discount rate
Matching principle
Traditional profit centers
49. The changes in cash resulting from the normal operating activities of the organization.
Cash flows from operating activities
Other revenues
Capital investment decisions
Statement of changes in net assets
50. The method by which to distribute service center costs to mission centers; in general the one that most accurately measures use by the cost centers that receives its services (food service - # of meals - hospital laundry - # of pounds processed)
Other support
Basis of Allocation
Activity Based Costing
Annuity