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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. 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.






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.






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.






4. Donated assets that have restrictions on their use which will never be removed.






5. Agencies that assess the "credit worthiness" of an organization. The two major rating agencies are Moody's and Standard & Poor.






6. The ease and speed with which an asset can be turned into cash.






7. Amounts earned by the organization from the provision of service or sale of goods.






8. Amounts due to the organization from patients - third parties - and others.






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.






10. The expenses incurred from an organization's operating activities.






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.






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






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






14. The purchase of assets with contributed and internally generated funds. See also Debt 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.






16. process of measuring the resources (costs) used to produce results.






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.






18. An assignment or grading of the likelihood that an organization will not default on a bond.






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






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






21. Highly liquid current assets such as interest-bearing savings and checking accounts.






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






23. Organizational units responsible for their own costs that provide administrative support to other organizational units or the organization






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






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.






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






27. Responsibility centers responsible for making a certain return on investments.






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.






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






30. [Total assets/Net Assets]






31. Organizational units primarily responsible for providing services and earning a profit based on the health care services provided.






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






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.






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






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






36. The percentage of each asset relative to total assets.






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.






38. The rise in an economy's general level of prices.






39. An entity that owns other companies.






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






41. A legal obligation to pay the holder of the note or lien.






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






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






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






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






46. A certificate attached to a bond representing the amount of interest to be paid to the holder.






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






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






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






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)