MAC3702
APPLICATION OF FINANCIAL MANAGEMENT TECHNIQUES
COMPULSORY ASSIGNMENT 01 FOR THE EARLY COMPLETION
PROGRAMME
DUE DATE:
UNIQUE NUMBER: - To be advised
YOU MUST COMPLETE THIS ASSIGNMENT IF YOU ARE REGISTERED FOR THE
EARLY COMPLETION PROGRAMME (ECP).
This assignment consists of 20 multiple-choice questions and counts 20 marks in total.
This assignment counts 25% towards your semester mark.
You must complete this assignment on a mark-reading sheet. Mark-reading sheets can
only be submitted electronically via myUnisa. Please refer to the brochure my Studies @ Unisa
on how to submit the assignment on a mark-reading sheet, or electronically via myUnisa.
Please remember to enter the correct unique number of the assignment AND your
correct student number on the mark-reading sheet.
1
Open Rubric
, lOMoARcPSD|8436517
ASSIGNMENT 1_ECP_2021
ASSIGNMENT 01 (This assignment is compulsory as it grants you access to the exam.
QUESTION 1
Which of the following statement(s) is/are true?
a) A higher inventory turnover should be desirable as it indicates that the company
is able to convert its inventory into sales more quickly.
b) An improvement in asset turnover leads to increased profitability as the asset
turnover ratio is a function of sales.
c) Increase in inventory turnover would translate to a decrease in inventory days.
d) Acid-test ratio is not applicable where the company does not sell goods on credit).
Choose the correct combination:
1. Statements (a) and (c)
2. Statements (b) and (c)
3. Statements (a), (c) and (d)
4. Statements (c) and (d)
QUESTION 2
Which of the following statement(s) is/are more accurate?
a) Companies with a lower dividend cover run a risk of not having enough earnings
to cover ordinary shareholders’ dividends.
b) Both interim and final dividends should be taken into account when calculating
the dividend cover at the end of the year.
c) Companies in their growth/expansion phase are likely to have a lower dividend
pay-out ratio.
d) South African companies may declare a lower dividend in an effort to cut down
on the dividend taxes they pay.
e) An investor’s return on a particular share may consist of the growth in the share
price and the dividend yield.
Choose the correct combination:
1. Statements (a), (c) and (e)
2. Statements (b), (c) and (e)
3. Statements (b) and (c)
4. Statements (a) and (d)
QUESTION 3
Which of the following statement(s) is/are true?
a) Effective tax rate measures the effectiveness of the company in planning its tax affairs.
b) Deferred tax can be cited as one of the reasons for differences between the
effective tax rate and the corporate tax rate.
c) Value added tax and import duties will lead to a higher effective tax rate.
d) Late tax payments will lead to a higher effective tax rate.
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