FINANCIAL MANAGEMENT: Working Capital
Management
FIN3702
ASSIGNMENT 01 SEMESTER 01 2023
ASSIGNMENT 01 (compulsory)
20 MULTIPLE-CHOICE QUESTIONS (20 marks)
DUE DATE: 03 April 2023
UNIQUE NUMBER: 628921
AIM: The purpose of this assignment is to evaluate your knowledge of the
fundamental aspects of cash flow management, financial planning, working capital
management and the management of current assets and/or liabilities. To complete
this assignment, you must study chapters 3, 14 and 15 of your prescribed book and
the relevant study units in your study guide.
Answer the following questions and submit your assignment at https://my.unisa.ac.za.
, QUESTION 1
Which one of the following is incorrect according to the statement below?
The operating cash required by a firm can be minimised by …
1. keeping lower inventory levels.
2. shortening the production cycle.
3. paying accounts payable as soon as possible.
4. collecting account receivable as quickly as possible.
Pay accounts payable as slowly as possible without damaging the firm’s credit rating.
QUESTION 2
The efficient management of cash involves ...
a. taking advantage of cash discounts.
b. maximizing the cash turnover.
c. increasing the inventory levels.
d. using any technique to collect accounts receivable.
e. delaying cash payments without affecting creditworthiness.
1. a,b,c
2. b,c,d
3. c,d,e
4. a,d,e
5. a,b,e
Improvements to cash management include a
▪ taking advantage of cash discounts
▪ maximizing the cash turnover
▪ delaying cash payments without affecting creditworthiness
Management
FIN3702
ASSIGNMENT 01 SEMESTER 01 2023
ASSIGNMENT 01 (compulsory)
20 MULTIPLE-CHOICE QUESTIONS (20 marks)
DUE DATE: 03 April 2023
UNIQUE NUMBER: 628921
AIM: The purpose of this assignment is to evaluate your knowledge of the
fundamental aspects of cash flow management, financial planning, working capital
management and the management of current assets and/or liabilities. To complete
this assignment, you must study chapters 3, 14 and 15 of your prescribed book and
the relevant study units in your study guide.
Answer the following questions and submit your assignment at https://my.unisa.ac.za.
, QUESTION 1
Which one of the following is incorrect according to the statement below?
The operating cash required by a firm can be minimised by …
1. keeping lower inventory levels.
2. shortening the production cycle.
3. paying accounts payable as soon as possible.
4. collecting account receivable as quickly as possible.
Pay accounts payable as slowly as possible without damaging the firm’s credit rating.
QUESTION 2
The efficient management of cash involves ...
a. taking advantage of cash discounts.
b. maximizing the cash turnover.
c. increasing the inventory levels.
d. using any technique to collect accounts receivable.
e. delaying cash payments without affecting creditworthiness.
1. a,b,c
2. b,c,d
3. c,d,e
4. a,d,e
5. a,b,e
Improvements to cash management include a
▪ taking advantage of cash discounts
▪ maximizing the cash turnover
▪ delaying cash payments without affecting creditworthiness
