Worksheetsmanagerial finance
Total questions: 15
Worksheet time: 8mins
On a balance sheet, ________ is (are) reported with fixed assets.
intangible assets
accounts payable
preferred stock
inventory
If total assets increase:
net working capital must also increase.
stockholders’ equity must also increase.
the change must be offset by an equal increase in liabilities and stockholders’ equity.
net income must be positive.
At the beginning of the year, a firm has current assets of $317 and current liabilities of $221. At the end of the year, the current assets are $471 and the current liabilities are $261. What is the change in net working capital?
$114
$0
$154
$194
The __________ is the positive difference between the selling price and the cost of goods sold.
Net Profit
Gross Profit
Net Loss
Gross Loss
Profit for the year = Gross profit plus Other income minus __________ .
Assets
Liabilities
Expenses
Revenue
__________
are assets which are obtained for use and not for resale, which help the business earn revenue.
Current Assets
Non-Current Assets
__________ are amounts which are due for repayment within the next 12 months.
Current Liabilities
Non-Current Liabilities
What is the primary difference between current and non-current liabilities?
Current liabilities are due within one year, while non-current liabilities are due after one year.
Current liabilities are larger in amount than non-current liabilities.
Non-current liabilities are always interest-bearing, while current liabilities are not.
Current liabilities are always secured, while non-current liabilities are unsecured.
Which financial ratio is used to assess a company's liquidity?
Debt to equity ratio
Current ratio
Return on equity
Price to earnings ratio
What is the impact of depreciation on the statement of financial position?
It increases the value of non-current assets.
It decreases the value of non-current assets.
It has no impact on the statement of financial position.
It increases the value of current liabilities.
Which of the following is a consequence of poor cash flow management?
Increased profitability
Improved credit rating
Inability to meet short-term obligations
Higher equity value
What does the quick ratio measure?
The ability to pay off all liabilities with all assets
The ability to pay off current liabilities with current assets excluding inventory
The profitability of a company
The efficiency of asset utilisation
Which of the following is an example of a current asset?
Land
Machinery
Inventory
Goodwill
Which of the following is a non-current liability?
Trade payables
Bank overdraft
Long-term loan
Accrued expenses
What is the effect of issuing new shares on equity?
It decreases equity.
It has no effect on equity.
It increases equity.
It decreases liabilities.
