TERM 2 - Financial Function Grade 10

A general increase in prices that decrease the purchasing power of money.

• Deflation

• Inflation

• Interest

• Recession

Which one of the following is NOT a task of the Financial Manager

• Interpret financial statements

• Controlling of budgets

• Recruitment of staff

• Planning of capital requirements

When a business has enough cash to meet current expenses it is called...

Which of the following is Sources of Working Capital? (Can be more than one)

• Selling Shares

• Lease accounts

• Mortgage

• Diversification

• Instalment sale transactions

Current Assets of a business consist of:

• Debtors, Creditors, Trading Stock

• Cash, Receivables, Inventory

• Bank, Creditors, Inventory

• Petty Cash, Trading Stock, Bank overdraft

Financial ratios that tell how much of each rand of sales, assets, and owner's equity resulted in net profit.

• Liquidity ratios

• Efficiency ratios

• Profitability ratios

• Leverage ratios

The difference between current assets and current liabilities at a point in time. The amount of money that would be left over if all the current liabilities were paid off by current assets.

• Current ratio

• Working capital

• Acid test/ Quick ratio

• Asset turnover ratio

The amount of profit generated by the firm in relation to the amount invested by the owners.

• Return on investment

• Ratio

• Working capital

• Inventory turnover

Identify the three sections of a Balance Sheet

• Revenue

• Assets

• Equity

• Expenses

• Liabilities

Using borrowed capital increases the risk of the business as it has to be paid back with ...