ACCA Financial Management MCQs

ACCA Financial Management MCQs

Our experts have gathered these ACCA Financial Management MCQs through research, and we hope that you will be able to see how much knowledge base you have for the subject of ACCA Financial Management by answering these 30 multiple-choice questions.
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1: An assignment or grading of the likelihood that an organization will not default on a bond.

A.   Volume diversity

B.   Inflation

C.   Accountability

D.   Bond rating

2: 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.

A.   Collections policies and procedures

B.   Disbursement float

C.   Administrative cost centers

D.   FV

3: 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

A.   Float

B.   Mail float

C.   Not-for-profit

D.   Cash flows from investing activities

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

A.   Mortgage bonds

B.   Centralization

C.   Ratio analysis

D.   Cash flows from operating activities

5: The budget that projects the organizations cash inflows and outflows. The bottom line in the cash budget is the amount of cash available at the end of the period.

A.   Not-for-profit

B.   Cash budget

C.   Discount rate

D.   Annuity

6: The revenue and expense budgets of an organization.

A.   Book value

B.   Opportunity cost

C.   Operating budget

D.   Float

7: An entity that sells bonds in order to raise money.

A.   Total asset turnover

B.   Issuer

C.   Operating revenues

D.   IRR

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

A.   Temporarily restricted net assets

B.   Horizontal analysis

C.   Matching principle

D.   Payback

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

A.   Time value of money

B.   Traditional profit centers

C.   Restricted donation

D.   Cost avoidance

10: 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

A.   Inflation

B.   Capital appreciation

C.   ABC

D.   Temporarily restricted net assets

11: 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.

A.   Line-item budget

B.   Creditor

C.   Strategic planning

D.   SWOT analysis

12: 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.

A.   Fixed Asset Turnover

B.   Coupon rate

C.   Revenue enhancement

D.   Accumulated depreciation

A.   Leverage

B.   Collateral

C.   Inflation

D.   Mutually exclusive projects

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

A.   Revenue enhancement

B.   Bonds

C.   Short-term financing

D.   Mission Center

15: The degree to which standards are met.

A.   Accountability

B.   Financing mix

C.   Effectiveness

D.   Opening inventory

16: The budget used to forecast operating expenses.

A.   Capital structure decision

B.   Co-payments

C.   Expense budget

D.   Cost

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

A.   Operating expenses

B.   Revenue enhancement

C.   Accounts receivable

D.   Horizontal analysis

18: 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.

A.   Return on net assets

B.   Mission statement

C.   Clinical cost centers

D.   Properties and equipment - net

19: What a series of equal payments in the future is worth today taking into account the time value of money.

A.   Return on total assets

B.   Present value of an annuity

C.   Increase in unrestricted net assets

D.   Horizontal analysis

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

A.   Net assets to total assets

B.   Liabilities

C.   Cost object

D.   SWOT analysis

21: An entity that gives capital to another entity in expectation of a financial or non-financial return.

A.   Quick ratio

B.   Investment grade

C.   Investor

D.   Line-item budget

22: General and administrative expenses. Operating expenses that are not contained in the labor or supplies budgets.

A.   Net proceeds from a bond issuance

B.   G & A expenses

C.   Comparative approach

D.   Volume diversity

23: 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

A.   Administrative cost centers

B.   Depreciation

C.   ABC

D.   Expansion decisions

24: [(cash + marketable securities + net accounts receivable)/current liabilities)- A measure of the organization's liquidity.

A.   Quick ratio

B.   Capital financing

C.   Accounts receivable

D.   Activity ratios

25: Costs not traced to a cost object - but that must eventually be allocated across cost objects. See also Direct costs.

A.   Indirect costs

B.   Amortization of a loan

C.   Responsibility center

D.   Precautionary purposes

26: A series of equal cash flows made or received at regular time intervals. Ordinary annuities occur at the end of each period whereas annuities due occur at the beginning of each period.

A.   Net increase (decrease) in cash and cash equivalents

B.   Co-payments

C.   Annuity

D.   Liabilities

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

A.   Financing activities

B.   Non-operating revenues

C.   Mission statement

D.   Precautionary purposes

28: (excess of revenues over expenses/total assets)- A measure of how much profit is earned for each dollar invested in assets. In for-profit organizations it is called return on assets and is calculated as: net income/assets.

A.   Return on total assets

B.   Cost of goods sold

C.   Collateral

D.   Properties and equipment

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

A.   Comparative approach

B.   Fixed Asset Turnover

C.   Assets

D.   Cost

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

A.   Operating income

B.   Current ratio

C.   Temporarily restricted net assets

D.   Base Budget

31: [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).

A.   Fixed costs

B.   Fixed Asset Turnover

C.   Net present value

D.   Operating budget

32: An organization whose profits can be distributed outside the organization and must pay taxes. Also called investor-owned organizations.

A.   Base Budget

B.   For-profit

C.   Footnotes

D.   Return on total assets