BAED-BFIN2121 Business Finance

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3. BAED-BFIN2121-2122S
4. Week 7: Sources of Funds I
5. Learning Activity 002

Question 1
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The _____ method of inventory control is a method which controls expensive inventory items
more closely than less expensive items.

Select one:

a.
Accounts receivable

b.
ABC

c.
Working capital management

d.
Cash management
Clear my choice

Question 2
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If a business entity has a larger current assets than its current liabilities, the entity has _______
working capital.

Select one:

a.
Current liabilities

b.
Positive

c.
Negative

d.
Inventory management
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Question 3
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The ________ motive of holding cash is to meet payments arising in the ordinary course of
business.

Select one:

a.
Accounts receivable
b.
Receivable management

c.
Working capital management

d.
Transaction
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Question 4
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This is also termed as common shares

Select one:

a.
Loan from banks and financing institutions

b.
Trade credit

c.
Equity shares

d.
Retained earnings
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Question 5
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Aging of receivables is a schedule of customer balances classified by the length of time they
have been unpaid.

Select one:
True
False

Question 6
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________ is needed in the proper cash controlling in purchase of raw materials or goods,
payment of salaries and wages, coping with daily expenses and providing credit obligations.

Select one:

a.
Working capital management

b.
ABC

c.
Accounts receivable

d.
Cash management
Clear my choice

Question 7
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This is the credit extended by one trader to another for purchasing goods or services

Select one:

a.
Loan from banks and financing institutions

b.
Trade credit

c.
Equity shares

d.
Retained earnings
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Question 8
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What must be deducted from the current assets in order to get the net working capital?

Select one:

a.
Inventory management

b.
Positive

c.
Current liabilities

d.
Negative
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Question 9
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Receivable management considers things such as what to purchase, how to purchase, how
much to purchase, from where to purchase, where to store and when to use for production.

Select one:
True
False

Question 10
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It is an unsecured promissory note issued by a firm to raise funds to meet short-term debt
obligations

Select one:

a.
Public deposits
b.
Commercial paper

c.
Factoring

d.
Equity shares
Clear my choice