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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. Series of payments over time - such as interest paid to bondholders.






2. A catchall category for miscellaneous expenses and losses not included in other categories (telephone - travel - meals - etc.).






3. Return on investment. The percentage gain or loss experienced from an investment.






4. 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.






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






6. Organizational unit given the responsibility to carry out one or more tasks and/or achieve one or more outcomes.






7. Assets that have a physical presence.






8. 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.






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






10. Ratios that measure how efficiently an organization is using its assets to produce revenues.






11. Financial obligations that will be paid off over a time period longer than one year






12. Private entity or individual who makes a donation






13. Market value. The price at which something - such as bonds and stocks - could be bought or sold today on the open market.






14. Portion of the profits the organization keeps in-house to use in support of its mission.






15. A budget in which line items are presented by program.






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






17. Future value. What an amount invested today (or a series of payments made over time) will be worth at a given time in the future using the compound interest method. This accounts for the time value of money. See also Present value.






18. Revenue is recorded when goods or services are delivered






19. 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?






20. 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).






21. [Total assets/Net Assets]






22. The budget used to forecast operating expenses.






23. The cost of activities that take place to produce the final cost object






24. Assets that have restrictions on their use which will be removed either with the passage of time or the occurrence of some event.






25. Requiring the patient to pay part of his/her health care bill. These payments are used to prevent over-utilization of services.






26. 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.






27. A schedule detailing the principal and interest payments required to repay a loan. Typically - the periodic payments remain unchanged - but the proportion used to payoff the principal increases over time.






28. Financial and non-financial standards against which organizational performance is measured.






29. A transaction that reduces the risk of an investment.






30. The difference between current assets and current liabilities.






31. The degree of dispersion of responsibility within an organization. See also Centralization.






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






33. [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.






34. The degree to which standards are met.






35. An entity that is owed money for lending funds or supplying goods or services on credit.






36. [total revenues/total assets].- This ratio measures the overall efficiency of the organization's assets to produce revenue. It answers the question: For every dollar in assets - how many dollars of revenue are being generated?






37. 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.






38. One of the four major financial statements of a health care organization. It presents a summary of the organization's assets - liabilities - and net assets as of a certain date.






39. Amounts the organization is obligated to pay others - including suppliers and creditors.






40. 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.






41. 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.






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






43. Previously restricted assets no longer restricted because the terms of the restriction have been met.






44. [operating income/total operating revenues]- The proportion of profit remaining after subtracting total operating expenses from operating revenues.






45. The absence of risk in an investment.






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






47. Financing that will be paid back in less than one year.






48. 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






49. The idea that a dollar today is worth more than a dollar in the future.






50. Expenses that have been incurred - but not yet paid.