Financial Function

An example of Fixed capital is...

• Money in bank

• Stock in the store

• Vehicles

• Money in petty cash

Which one of the following is NOT a task of the Financial Manager(CFO)

• Interpret financial statements

• Controlling of budgets

• Recruitment of staff

• Planning of capital requirements

Debtors are people or businesses that owe us money.True or false?

• True

• False

Outstanding debtors’ accounts are sold to a bank when it needs short-term capital is called...

• Factoring of Debtors

• Overdraft

• Loans on the security of warehouse receipts

• Instalment sale transactions

The business pays monthly installments for the use of an asset, but ownership is never transferred to the business.This is known as...

• Factoring of debtors

• Installment sale transactions

• Lease accounts

• Bills of exchange

This is a facility given to the business/entrepreneur by a commercial bank.

• Overdraft

• Factoring of debt

• Bills of exchange

• Short Term Loan

A method used to buy high value capital goods. The seller can repossess the goods if payment is not made.

• Trade credit

• Overdraft

• Lease accounts

• Installment sales

Money that owner put into the business is known as ...

• Borrowed capital

• Own capital

• Suppliers capital

• Owners interest

Sales - cost of sales=

• Gross profit

• Net profit

When a business has enough cash to cover its expenses. This is called ...

• Credit

• Solidity

• Liquidity

• Cash flow