B.Com Accounting & Finance Corporate Finance — practice questions
44 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice B.Com Accounting & Finance Corporate Finance in the app →A clerk records each day's sales and payments in a routine ledger. That routine work is:The three main accounting elements were defined in the late 15th century by:Cash, equipment and buildings a firm owns are its:What a firm owes to its creditors is recorded as its:Total investment in a firm minus its liabilities is called owners' equity, also known as:You open a shop with 10,000 in cash and no debt. Owners' equity at that moment is:You then borrow 10,000 from a bank. Your total assets become:That bank loan is entered as a liability of 10,000, keeping the equation balanced. This method is called:The process running from a business transaction through to the finished report is the accounting:Assets a firm can turn into cash quickly are classed as:Machinery a bakery uses in production for more than a year is recorded under:A patent or copyright a firm owns is recorded as an:Debts a firm must pay within a year of the balance sheet date are:Profits kept in the business since it started, rather than paid out, are called:The total expense of buying or producing what a firm sells is the:Net sales minus the cost of goods sold gives:Salaries and commissions paid to salespeople and the cost of advertising fall under:Cash a firm generates from producing and selling its goods appears under cash flow from:Cash movements tied to debt and equity funding appear under cash flow from:A lender divides a firm's current assets by its current liabilities. That measure is the:The same ratio worked out after leaving inventory out is called the:Net profit divided by net sales gives the net profit margin, also called:Resources that are cash, near cash, or expected to become cash within a year are:Excess cash parked in short-term investments is held in:Working capital equal to the whole of current assets is called:The more refined measure, found by subtracting current liabilities, is:One stated goal of working capital management is to satisfy obligations as they:Another goal is keeping an optimal level of current assets, noting that cash itself provides:Working capital management covers all decisions involving current assets and:The time between beginning production and collecting cash from customers is the:That cycle is measured in:The number of days it takes to collect cash from a credit sale is the:The time taken to convert inventory into sales is also called the:The average number of days a company takes to pay its suppliers is the:That payables period is described as the element that probably cannot be optimised without:The first step in working out the inventory conversion period is to calculate the:Working capital needs that rise and fall with the season are described as:Working capital needs that stay in place all year round are described as:Better inventory management, better collections and longer supplier terms together will:Credit taken from suppliers, recorded as accounts payable, is called:Cash held by a business is needed above all to pay the bills and meet the:Assets that turn into cash within a year through normal operations are contrasted with capital that is:Because payments for purchases are usually made on credit, cash outflows in a month often do not equal:Excess cash invested in cash alternatives is said to create: