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Test your basic knowledge |
ACCA Financial Management
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Subjects
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certifications
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business-skills
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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. Directly related to the purposes of the organization and the delivery of services
Mission Center
Permanently restricted net assets
Cash and cash equivalents
Administrative cost centers
2. Revenue is recorded when goods or services are delivered
Leverage
Operating margin
Annuity
Realization principle
3. The total amount of multiyear debt due in future years.
Allocation
Discounted cash flows
Operating activities
Long-term debt - net of current portion
4. 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.
Disbursement float
Product diversity
Expense cost variance
Lease
5. [Surplus/Operating Revenues]
Profit margin
Properties and equipment - net
Non-operating ratio
Investor
6. The difference between current assets and current liabilities.
Current ratio
G & A expenses
Net working capital
Ending inventory
7. Non-operating income.
Cost object
Top-down/bottom-up approach
Comparative approach
Other income
8. 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
Depreciation
Return on total assets
Accounts payable
Assets
9. The cost of activities that take place to produce the final cost object
Transaction
Average Days Inventory
Coupon rate
Intermediate Cost Object
10. (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
Long-term investments
Amortization of a loan
Hedge
Tax-exempt bonds
11. A benefit paid for in advance (rent - insurance - etc.). Also called prepaid expense.
Net working capital
Fixed labor budget
Prepaid assets
Tax-exempt bonds
12. Expenses that have been incurred - but not yet paid.
Investment grade
Dividends
Income from investments
Accrued expenses
13. Supplementing traditional sources of revenue with new sources.
Non-operating ratio
Cost centers
Cost Accounting
Revenue enhancement
14. Proceeds lost by foregoing other opportunities.
Opportunity cost
Cost centers
Beginning inventory
Periodic payments
15. [Net Assets/Total Assets]. This ratio reflects the proportion of total assets financed by equity.
Current assets
Fixed labor budget
Net Assets to Total Assets
Bond rating
16. A measure of the income earned from operating activities. It is calculated as: unrestricted revenues - gains - and other support -expenses and losses.
Fixed (interest) rate debt
Operating income
Collection float
Top-down/bottom-up approach
17. The unit of service which we wish to know the cost for (hospital admission - classroom hour - course - etc.)
Product diversity
Capital structure ratios
Final cost object
Fully allocated costs
18. Each service center
Single/Simple Step
Amortization of a loan
Properties and equipment - net
Asset mix
19. Financing that will be paid back in less than one year.
Performance budget
Short-term financing
Basic accounting equation
Mission Center
20. How an organization chooses to finance its working capital needs.
Breakeven point
Capital financing
Clinical cost centers
Financing mix
21. {[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).
Fully allocated costs
Coupon
Days cash on hand
Investment grade
22. The difference between what was planned (budgeted) and what was achieved (actual).
Capital appreciation
Budget variance
Realization principle
Revenue budget
23. Amounts given to the organization for operating purposes - such as governmental appropriations and unrestricted donations.
Other support
Financing mix
Accrual basis of accounting
Short-term financing
24. 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.
Cost of goods sold
Cash flows from investing activities
Ratio analysis
Dividends
25. (non-operating revenues/total operating revenues)- A ratio that reflects how dependent the organization is on non-patient care related net income.
Budget variance
Non-operating ratio
Return on net assets
Revenue enhancement
26. Amounts the organization is obligated to pay others - including suppliers and creditors.
Step Down
Average payment period
Discounted cash flows
Accounts payable
27. [total revenues/net plant & equipment]- This ratio measures the number of dollars generated for each dollar invested in an organization's plant and equipment.
Multiyear budget
MV
Book value
Fixed asset turnover
28. 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.
Asset mix
Long-term investments
Discounted cash flows
Present value of an annuity
29. An entity that temporarily grants the use of money or an asset to another in return for compensation - usually in the form of interest.
Fully allocated costs
Lender
Mission Center
Discount rate
30. Activity-based costing. A method to determine the costs of a service - product - or customer by tracing the resources consumed. ABC focuses on: I) controlling as well as calculating costs - 2) tracing as opposed to allocating costs - and 3) the impor
Statement of cash flows
Compounding
Net patient service revenue
ABC
31. The amount expected to be collected from payors. It is calculated as: gross accounts receivable – discounts and allowances – allowance for un-collectibles.
Net Assets to Total Assets
ABC
Net accounts receivable
Current liabilities
32. [Net Accounts Receivable/(Revenue/356)]
Efficiency
Current ratio
Coupon
Average Days Receivable
33. A legal obligation to pay the holder of the note or lien.
Total revenue
SWOT analysis
Notes payable
Average Days Inventory
34. [Total Revenues/(Net Fixed Assets)]. This ratio measures the number of dollars generated for each dollar invested in an organization's fixed assets (i.e. plant and equipment).
Fixed supplies budget
Interest
Creditor
Fixed Asset Turnover
35. Setting aside cash to meet unexpected demands - such as unexpected maintenance of a facility or piece of equipment.
Non-operating revenues
Cash and cash equivalents
Certainty
Precautionary purposes
36. Properties and equipment less accumulated depreciation.
Properties and equipment - net
Program budget
Investment centers
Donor
37. Literally non-movable assets. Generally used to refer to buildings and equipment.
Total asset turnover
Fixed assets
Beginning inventory
Lease
38. An entity that gives capital to another entity in expectation of a financial or non-financial return.
Investor
Acid test ratio
Other support
Accounting period
39. The current traded rate for similar risk securities.
Market rate of interest
Average payment period
Incremental cash flows
Lien
40. That point at which total revenues equal total costs. It is described by the equation: (price x volume) = fixed costs + (variable cost per unit x volume).
Coupon rate
Breakeven point
Step Down
Expense volume variance
41. 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
Liquidity
Basic accounting equation
Top-down budgeting
Average payment period
42. Bonds that have received a rating ranging from AM to BBB (at S&P) - or Aaa to Bbb (Moody's) - of which the highest are called quality ratings.
Periodic payments
Activity ratios
Non-current assets
Investment grade
43. 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.
Leverage
Service centers
Quick ratio
Allowance for uncollectibles
44. The section of the expense budget that forecasts salary and benefits.
Intermediate Cost Object
Current ratio
Mutually exclusive projects
Fixed labor budget
45. 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.
Traditional profit centers
Horizontal analysis
Non-current liabilities
Capital assets
46. The sources of funds to finance the non-current assets of the organization. Also the debt and equity of the organization.
Strategic planning
Profit margin
Tangible assets
Capital
47. Demonstrates the extent to which the organization is earning money from its assets. Not usually as imp for NPs - varies w/ NP.
IRR
Clinical cost centers
Cost
Asset Management ratios
48. Revenues of the organization earned in non-healthcare related activities.
Interest
Non-operating revenues
Single/Simple Step
Accrual basis of accounting
49. Debt to be paid off in a period longer than one year.
Long-term financing
Cash and cash equivalents
Operating margin
Inflation
50. Current year budget projected for the coming fiscal year assumes no program changes and adjust for price - workload - annualizations
Base Budget
FV
Average payment period
Cost