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






2. 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.






3. Costs that stay the same in total over the relevant range as volume increases - but that change inversely on a per unit basis.






4. 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).






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






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






7. The gradual process of paying off debt through a long series of equal periodic payments. Each payment covers a portion of the principal plus current interest. The periodic payments are equal over the lifetime of the loan - but the proportion going to






8. 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






9. The current traded rate for similar risk securities.






10. 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.






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






12. A benefit paid for in advance (rent - insurance - etc.). Also called prepaid expense.






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.






14. Assets minus Liabilities. One of the three major categories on the balance sheet. Traditionally known as stockholders' equity in investor-owned organizations and fund balance in not-for-profit organizations. In not-for-profit health care organization






15. Budgets that typically cover two to five years.






16. The amount of supplies used to provide a service or good.






17. The amount of time between when an organization receives a service and pays for it.






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






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






20. The budget used to forecast operating expenses.






21. [(actual volume -budgeted volume) x budgeted cost per unit).- The portion of total variance that is due to actual volume being either higher or lower than budgeted volume. It is the difference between the expenses forecast in the original budget and






22. 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.






23. The cash flows derived from an organization's operating activities.






24. Amounts given to the organization for operating purposes - such as governmental appropriations and unrestricted donations.






25. 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.






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






27. The difference between current assets and current liabilities.






28. 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.






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






30. Directly related to the purposes of the organization and the delivery of services






31. Service center costs are allocated to both mission centers and other service centers






32. A method by which the organization develops its strategies and budgets to meet future financial targets.






33. Operating income not reported elsewhere under revenues - gains - and other support.






34. A statistic used to allocate costs from a cost center based on a cause and effect relationship. For example - a common allocation base to allocate the costs of maintaining medical records is number of visits. See also Cost driver.






35. An entity that owns other companies.






36. I) Measuring inputs against outputs. 2) The cost of service per unit rendered.






37. 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






38. The budget that projects the organization's cash inflows and outflows. The bottom line in the cash budget is the amount of cash available at the end of the period.






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






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






41. Costs that are traced to a cost object. See also Indirect costs and Cost object.






42. The amount of the total revenue variance that occurs because the actual average rate charged varies from that originally budgeted. It can be calculated using the formula: (actual rate -budgeted rate) x actual volume.






43. The degree to which standards are met.






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






45. [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?






46. The resources owned by the organization. It is one of the three major categories on the balance sheet.






47. Cash inflows and outflows resulting from financing activities - such as obtaining grants or endowments - or from borrowing or paying back long-term debt.






48. Organizational units responsible for providing health care related services to clients - patients - or enrollees - and the related costs thereof.






49. Cash flows that occur solely as a result of undertaking a project. Basically the marginal difference between alternatives.






50. The amount of inventory on hand at the end of an accounting period. See also Beginning inventory.