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Worksheets12A - 4th Quarter Quiz 3
Total questions: 20
Worksheet time: 10mins
What is an asset?
An item of property owned by a person or company
An item owned by a business that lasts for several years.
Which of the following reasons is not a purpose of investment
Accretion of wealth
ownership control
meeting business requirements
Payment of loans
The following are financial assets except,
Non-trading equity securities
investment in subsidiary
investment in joint venture
investment property
Generally, investments are classified in the balance sheet as
Current asset
Non-current asset
either current asset or non-current assets
none of the above
Financial Asset is any asset that is
Cash
A contractual right to exchange financial instrument with another entity under conditions that are potentially unfavorable
both choices are true
none of the above
Financial Assets are fair value through profit or loss may classify as
equity securities and debt securities
equity securities only
debt securities only
none of the above
The following financial assets shall be measured at "fair value through profit or loss" except
Trading securities
Investment in quoted equity instruments
Financial assets that are irrevocably designated as Fair value through profit or loss
Debt Investment measured at fair value through profit or loss "bu default" in accordance with PFRS 9
all of the above are measured at fair value through profit or loss
A financial security that generally has a longer
term than a bill, but a shorter term than a
bond.
Notes
Bills
Stocks
Bonds
A contract between an insured and an insurer who
promises to pay a designated beneficiary a sum of
money (the "benefits") in exchange for a premium,
upon the death of the insured person.
Pre need Plan
Life Insurance Plans
Mortgage Loans
Prepaid Insurance
Helen has accumulated money from her daily allowance. She is looking for the best way to invest her money. She learned that Peter was in need of money for the expansion of his business. In this scenario, Helen is the ______.
User of Funds
Sources of Funds
Helen has accumulated money from her daily allowance. She is looking for the best way to invest her money. She learned that Peter was in need of money for the expansion of his business. Here, Peter is the _______.
User of Funds
Sources of Funds
How transactions between suppliers and users of funds take place. How would they prove that there was a transaction so that the demander will be able to repay the supplier on time and at the right amount?
Verbal Agreement
Written Agreement
Why is the cash flow important?
To know the available cash to pay
To know if the business is being efficient with its cash
To avoid insolvency
All are correct
Which one is the formula for an accounting equation?
Assets = Liabilities - Shareholder's Equity
Assets = Liabilities + Shareholders' Equity
Shareholder's Equity = Assets + Liabilities
Why is the cash flow forecast important?
To know if the business is holding too much cash that could be used in a more profitable way.
To know how much money ask the bank for.
To help the manger to know the available cash to pay/purchase.
All the above.
What means "cash flow as a liquid asset"?
That it assess a company's profitability.
That is immediately available for spending on goods and services.
That it includes all purchases of capital assets and investments in other business ventures.
That it represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.
Which of these is NOT a goal of the cash flow forecast?
Start up a business
Run an existing business
Be 100% accurate
Keep the bank informed
Which one of the following ISN’T a way of cash outflow?
Purchasing goods & services
Paying wages, salaries and expenses
Paying creditors
Borrowing money from external sources
Which of these ISN’T a way of holding working capital?
Cash
A company car
Debtors
Inventories
A (a) is an investment that allows one to gain partial ownership of a company.
