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WorksheetsFinancial Management
Total questions: 12
Worksheet time: 3mins
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.
