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TERM 2 - Financial Function Grade 10

Total questions: 15

Worksheet time: 7mins

Name
Class
Date
1.

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

a)

Deflation

b)

Inflation

c)

Interest

d)

Recession

2.

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

a)

Interpret financial statements

b)

Controlling of budgets

c)

Recruitment of staff

d)

Planning of capital requirements

3.

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

(a)  

4.

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

a)

Selling Shares

b)

Lease accounts

c)

Mortgage

d)

Diversification

e)

Instalment sale transactions

5.

Current Assets of a business consist of:

a)

Debtors, Creditors, Trading Stock

b)

Cash, Receivables, Inventory

c)

Bank, Creditors, Inventory

d)

Petty Cash, Trading Stock, Bank overdraft

6.

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

a)

Liquidity ratios

b)

Efficiency ratios

c)

Profitability ratios

d)

Leverage ratios

7.

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.

a)

Current ratio

b)

Working capital

c)

Acid test/ Quick ratio

d)

Asset turnover ratio

8.

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

a)

Return on investment

b)

Ratio

c)

Working capital

d)

Inventory turnover

9.

Identify the three sections of a Balance Sheet

a)

Revenue

b)

Assets

c)

Equity

d)

Expenses

e)

Liabilities

10.

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

(a)  

11.

To maintain a good ratio between own and borrowed capital is called

(a)  

12.

TRUE or FALSE: Cash is the financial return or reward that entrepreneurs aim to achieve to reflect the risk that they take.

a)

TRUE

b)

FALSE

13.

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

a)

Factoring of Debtors

b)

Overdraft

c)

Loans on the security of warehouse receipts

d)

Instalment sale transactions

14.

An amount of money owed to creditors is called...

(a)  

15.

TRUE or FALSE: A business who provide credit facilities to customers need more working capital.

a)

TRUE

b)

FALSE