Business Studies - Finance

Question 1

Which of the following is NOT one of the main financial objectives of financial management

Accepted Answer

Planning

Question 2

Calculate the expense ratio from the following information

Accepted Answer

22%

Question 3

Unit Trusts are a financial insitution that provides debt financing

Accepted Answer

False

Question 4

Which ratio measures the level of debt in comparison to the equity put in by owners and shareholders?

Accepted Answer

Gearing Ratio

Question 5

Cash flow statements can show whether a firm can...?

Accepted Answer

All of the above

Question 6

Which of the following IS one of the basic methods of payment?

Accepted Answer

Letter of Credit

Question 7

Marcus purchases a van for his business that he writes down as an asset on his Financial Report. This is an example of?

Accepted Answer

Capitalising Assets

Question 8

Ms Burgess recorded $50 000 in wages on her financial report but used the money for herself. This is an example of...?

Accepted Answer

Misuse of Funds

Question 9

Calculate the gearing ratio for 2022 from the information provided below

Accepted Answer

277%

Question 10

Owners Equity = Assets + Liabilities

Accepted Answer

False

Question 11

Andriy has experienced a shortfall in cash and looking to borrow money quickly. Which source of finance is best for him?

Accepted Answer

Overdraft

Question 12

Which of the following best describes the Role of Finance?

Accepted Answer

Planning/monitoring of financial resources to achieve financial objectives

Question 13

The Global Economic Outlook is best described as?

Accepted Answer

Projected changes in level of economic growth throughout the world

Question 14

"The exporter ships goods directly to the importer before payment is received" refers to which method of payment?

Accepted Answer

Clean Payment

Question 15

What does a Horizontal Analysis compare?

Accepted Answer

Compares figures from different financial years

Question 16

Which of the following is an example of short-term debt?

Accepted Answer

Commercial Bills

Question 17

"An agreement between businesses to exchange currency between a specified period" refers to which derivative?

Accepted Answer

Swaps

Question 18

The following ratio is related to which financial objective?

Accepted Answer

Efficiency

Question 19

Businesses rely on global markets because it provides access to more finance

Accepted Answer

True

Question 20

Which of the following statements best defines &#x27;Profitability&#x27;

Accepted Answer

Earning performance of the business that shows capacity to maximise profits

Question 21

What will happen if the Australian dollar were to depreciate?

Accepted Answer

The price of Australia&#x27;s exports will fall, while imports will rise

Question 22

Which of the following is NOT a key strategy in improving accounts receivable turnover ratio

Accepted Answer

Distribution of Payments

Question 23

The ability of a business to "minimise costs and use assets to maximise profits" refers to which financial objective?

Accepted Answer

Efficiency

Question 24

The Return on Equity Ratio is represented as a percentage

Accepted Answer

True

Question 25

Which of the following would impact cash flow management positively?

Accepted Answer

Factoring companies purchase accounts

Question 26

Which type of budget relates to capital expenditure and research and development (R&D)?

Accepted Answer

Project Budgets

Question 27

Which of the following is classified as a Selling Expense?

Accepted Answer

Wages

Question 28

Working Capital Management is best decribed as?

Accepted Answer

Ensuring adequete funds are available to meet short-term commitmnets

Question 29

What is the directive verb &#x27;Evaluate&#x27; defined as?

Accepted Answer

Make a judgement based on criteria: determine the value of

Question 30

Calculate the current ratio for 2021 from the information provided

Accepted Answer

8.2 : 1

Business Studies - Finance

Questions 30

Business Studies - Finance

Questions 30