WorksheetsBMNG5122: Financial Management
Total questions: 26
Worksheet time: 23mins
Liquidity:
"The ability of a business to meet its ST obligations."
“The relationship between 2 items (or groups of items) in the financial statements.”
Solvency:
"The ability of a business to meet its short-term obligations ."
"The ability of a business to repay its debt."
True/False:
Current Ratio = (Current Assets-Inventory)/Current Liabilities
True.
False.
Which Concept explains this statement the best?
"How much money do the owners’ receive based on the net profit of the company."
Return on Owners Equity.
Net profit margin.
Return on total capital.
What does this statement best align with?
"Business look at its activities afresh annually. Historical results are not taken into account."
Zero-base budgeting.
Traditional budgeting.
Which 2 aspects below are costs of holding stock?
Interest.
Trasnportation cost.
Insurance costs.
Obsolescence.
When do you accept a project based on the Net Present Value calculation.
Positive NPV.
Negative NPV.
NPV = 0.
Money Markets are "funds required for long-term investment".
True.
False.
Pick the 2 types of short term financing available to organisations.
Bank overdraft.
Accruals.
Loans.
Financial Leasing.
You are allowed to invest in shares of listed companies on the Johannesburg Stock Exchange (JSE).
True.
False.
Financial Management is one Function of an Organisation.
True.
False.
You should not think about long-term financial decisions if you are only a student.
True.
False.
Finance functions are
Planning for funds
Raising of funds
Allocation of funds
All of the above
In a financial market, the price to borrow money is called the?
Deposit
Interest Rate
Credit
Cost
______________ is money supplied by investors, banks, or owners of a business.
Equity
Capital
Income statement
Property
The primary goal of Financial Management is
To minimise costs
To minimise the risk
Profit maximisation
A CFO is responsible for all financial activities of the company
True
False
_______________ is the area of finance concerned with the activities of buying and selling financial assets such as stocks and bonds.
Investments
Corporate finance
International finance
Financial markets and institutions
Stocks are bought and sold in ________ markets.
equity
debt
derivatives
foreign exchange
Bonds are bought and sold in ________ markets.
equity
debt
derivatives
foreign exchange
The process of planning, evaluating, selecting, and managing the financing of long-term operating projects of the company is termed ________.
capital budgeting
capital structure
accounts receivable management
working capital management
The purpose of studying financial statements is ________.
to mechanically build portfolio analysis
to understand those portions of the statements that have relevance for financial decision making
to primarily investigate all portions of the statements that have relevance for dividend policy
to mechanically learn how to read and understand footnotes
What has the same meaning as positive cash flow?
Surplus
Deficit
Pool of institutions and procedures that facilitate transactions in all types of financial claims refer to
Banking institutions
Financial market
Money market
Ministry of finance
_______ are relatively liquid, and are expected to be converted to cash within a year.
Current liabilities
Non-current liabilities
Current assets
Non-current assets
