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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. [Surplus/Operating Revenues]






2. [(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






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






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






5. 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






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






7. The section of the statement of cash flows that reports the total change in cash and cash equivalents over the accounting period.






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






9. A form of long-term financing whereby the issuer receives cash and in return issues a note called a bond. By issuing the bond - the issuer agrees to make principal and/or interest payments on specific dates to the holders of the bond.






10. (excess of revenues over expenses/net assets)- In not-for-profit health care organizations - it measures the rate of return for each dollar in net assets. In for-profit organizations - it measures the rate of return for each dollar in owners' equity;






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






12. {[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).






13. A method to evaluate the feasibility of an investment by determining how long it would take until the initial investment is recovered. This method does not account for the time value of money.






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






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






16. An entity that temporarily grants the use of money or an asset to another in return for compensation - usually in the form of interest.






17. The planning process that identifies the organization's mission and strategy in order to position itself for the future.






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






19. If a project is undertaken - these cash flows are the indirect increases or decreases in cash flows that will occur elsewhere in the organization.






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






21. A measure of the resources used to generate revenue and/or provide a service. Often used synonymously with costs. See also Costs.






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






23. The amount of inventory on hand at the beginning of an accounting period. See also Ending inventory.






24. A technique to evaluate an organization's strengths - weaknesses - opportunities - and threats. Also called a WOTS-up analysis.






25. Revenue is recorded when goods or services are delivered






26. 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






27. [long-term debt/net assets]- A measure of the proportion of an organization's assets that are financed by debt as opposed to equity. In for-profit organizations - it is called the long-term debt to equity ratio and is calculated using the formula [lo






28. One of the four major financial statements. It summarizes the organization's revenues and expenses during an accounting period as well as other items that affect its unrestricted net assets. It is analogous to - but different from - an income stateme






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






30. The budget that forecasts the operating and - in some cases - the non- operating revenues that will be earned during the budget period.






31. The process of distributing service center costs to mission centers - to determine the full cost of each mission center






32. Capital investment decisions designed to increase an organization's strategic position.






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






34. 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






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






36. (non-operating revenues/total operating revenues)- A ratio that reflects how dependent the organization is on non-patient care related net income.






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






38. The budget format that lists revenues and expenses by category - such as labor - travel - and supplies. Categories are sometimes broken down into sub-categories. See also Performance budget and Program budget.






39. Recording expenses associated with making revenue at the same time as revenues are recognized






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






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






42. 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






43. Time delays in the billing and collection process. There are four categories of float: billing - collection - transit - and disbursement. An organization's goal is to optimize float for incoming revenues and outgoing bills.






44. Non-operating income.






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






46. Demonstrates the extent to which the organization is earning money from its assets. Not usually as imp for NPs - varies w/ NP.






47. 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






48. A statement intended to guide the organization into the future by identifying the unique attributes of the organization - why it exists - and what it hopes to achieve.






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






50. The current traded rate for similar risk securities.