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Financial Function

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

An example of Fixed capital is...

a)

Money in bank

b)

Stock in the store

c)

Vehicles

d)

Money in petty cash

2.

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

a)

Interpret financial statements

b)

Controlling of budgets

c)

Recruitment of staff

d)

Planning of capital requirements

3.

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

a)

True

b)

False

4.

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

5.

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

a)

Factoring of debtors

b)

Installment sale transactions

c)

Lease accounts

d)

Bills of exchange

6.

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

a)

Overdraft

b)

Factoring of debt

c)

Bills of exchange

d)

Short Term Loan

7.

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

a)

Trade credit

b)

Overdraft

c)

Lease accounts

d)

Installment sales

8.

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

a)

Borrowed capital

b)

Own capital

c)

Suppliers capital

d)

Owners interest

9.

Sales - cost of sales=

a)

Gross profit

b)

Net profit

10.

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

a)

Credit

b)

Solidity

c)

Liquidity

d)

Cash flow