HBM Prelim (Part 2) Revision 2024

Organise these options into the right categories

Groups:

(a) Non current assets

,

(b) Current assets

,

(c) Current liabilities

,

(d) Non-current liabilities

• bank loan

• premises

• inventory

• cash at bank

• trade payables

• vehicles

• bank overdraft

Net assets employed =

• non-current assets + working equity

• sales revenue - cost of sales

• current assets - current liabilities

• opening balance + receipts - payments

Working equity shows: (choose all that apply)

• ability to pay short-term debts

• current assets - current liabilities

• ability to pay long-term debts

• current liabilities - current assets

Return on Equity Employed =

• (Profit for the Year/Equity) x 100

• (Equity/Profit for the Year) x 100

• (Equity - Profit for the Year) x 100

• (Equity - Profit for the Year) x 100

• (Gross Profit/Equity) x 100

Current Ratio =

• current assets/current liabilities : 1

• current liabilities/current assets : 1

• (current assets - closing inventory)/current liabilities : 1

• (current liabilities - closing inventory)/current assets : 1

• current assets/current liabilities x 100

The ideal acid test ratio is...

(a)  

Organise these options into the right categories

Groups:

(a) Profitability Ratios

,

(b) Liquidity Ratios

,

(c) Efficiency Ratios

• Rate of inventory turnover

• Return on equity employed

• Profit for the Year %

• Gross profit %

• Current ratio

• Acid test ratio

What would a business need to do to meet physiological needs (Maslow)

• Pay a fair wage and allow appropriate breaks

• Humans need self esteem

• Allow social interaction with others

Which is not one of Maslow's hierarchy of needs

• Physiological

• Safety

• Motivation

• Social

Which is true of a cash budget?

(choose all the correct answers)

• shows a detailed financial plan of action for a future period

• shows all future RECEIPTS and all future PAYMENTS

• shows profit/loss made by a business

• shows all past RECEIPTS and past PAYMENTS a business had made