BEA Oct 30

Which of the 5 C's of Credit is pledged as security for repayment of a loan?

• Capacity

• Collateral

• Character

• Conditions

Which is NOT a benefit of budgeting

• It promotes research and a focus on the future

• It is a source of motivation

• It will prevent Net Losses from occurring

• It is a means of coordinating business activities

Which of the following statements concerning the NPV is NOT TRUE

• The NPV technique takes into account the Time Value of Money

• NPV is the sum of all the discounted cash flows associated with a project

• NPV Techniques takes account of all the cash flows associated with a project

• The project expected to yield the lowest NPV should be selected

If the Payback period is 4 years and the cashflow is $2,750,000 each year, what is the initial investment

• 9,000,000

• 10,000,000

• 11,000,000

• 12,000,000

What is the Future Value (approx.) where present value = $1000, r = 6% and t= 10

FV = PV x (1+r)^t

• 1,600.22

• 400.01

• 1,790.85

• 1,645.32

Which is an EXTERNAL factor that can directly impact the development of a hotel manager's annual operating budget

• The replacement of the hotel managers revenue manager

• The opening of a nearby hotel by a major competitor

• A reduction in the hotel's targeted room rate.

• The implementation by the hotel of a new marketing program

An organizations aging report is used to monitor its

• Accounts Receivable

• Accounts Payable

• Credit application

• Cashflow statement

__________is the first step of a budgetary system and all other budgets depend on it

• HR Budget

• Finance Budget

• Production Budget

• Sales Revenue Budget

The difference between budgeted amounts and actual results is classified as

• Standard deviation

• Average

• Variance

• Weighted Average

What do we mean by Net Working Capital.

• The difference between Current Assets and Current Liabilities

• The amount of profit a company made

• The value of a company’s Assets

• The cash balance in the bank