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WorksheetsTERM 2 - Financial Function Grade 10
Total questions: 15
Worksheet time: 7mins
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...
(a)
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 ...
(a)
To maintain a good ratio between own and borrowed capital is called
(a)
TRUE or FALSE: Cash is the financial return or reward that entrepreneurs aim to achieve to reflect the risk that they take.
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
An amount of money owed to creditors is called...
(a)
TRUE or FALSE: A business who provide credit facilities to customers need more working capital.
TRUE
FALSE
