Started on Monday, 29 July 2024, 1:26 PM
State Finished
Completed on Monday, 29 July 2024, 1:40 PM
Time taken 14 mins 13 secs
Marks 18.00/20.00
Grade 90.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
IBM’s sales would be indicated on the statement of nancial __________ and is also known as ________ income.
Select one:
a. position; gross
b. position; net
c. performance; net
d. performance; gross
The correct answer is: performance; gross
Question 2
Correct
Mark 1.00 out of 1.00
If IBM decided to increase their pro tability by looking at the return on assets, which one of the following options would be an
appropriate suggestion?
Select one:
a. Disinvest non-core business units.
b. Reduce operation expenses.
c. Stock products with a faster turnover rate.
d. Buy back shares.
The correct answer is: Disinvest non-core business units.
_________________ is the ability of the business to satisfy its short-term obligations as they become due.
Select one:
a. Solvency
b. Liquidity
c. Pro tability
d. Currency
The correct answer is: Liquidity
Question 4
Correct
Mark 1.00 out of 1.00
IBM’s debt ratio for 2010 is 79.6%. This means that IBM has _________________ .
Select one:
a. 79.6 cents of assets available for each R1 of its liabilities
b. R7.96 of non-current assets available for each R1 of its non-current liabilities
c. nanced 79.6% of its debt with assets
d. nanced 79.6% of its assets with debt
The correct answer is: nanced 79.6% of its assets with debt
Question 5
Correct
Mark 1.00 out of 1.00
Which one of the following options can be used to increase the value of the business?
Select one:
a. Investing in assets that will add value to the business
b. Keeping the cost of capital as high as possible
c. Investing in proper marketing and operational strategies
d. Investing in liabilities that will add value to the business
The correct answer is: Investing in assets that will add value to the business
If IBM decides to nance non-current assets with long-term nancing and current assets are nanced with short-term funds,
which approach to short-term nancing are they using?
Select one:
a. The matching approach
b. The aggressive approach
c. The conservative approach
d. The precautionary approach
The correct answer is: The matching approach
Question 7
Correct
Mark 1.00 out of 1.00
Study the information from IBM’s financial statements below:
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Current assets R 48 116 000 R 48 935 000 R 49 004 000
Current liabilities R 40 562 000 R 36 002 000 R 42 435 000
Inventory R 2 450 000 R 2 494 000 R 2 701 000
Owners’ equity R56 455 000 R55 932 000 R53 657 000
Total liabilities R 90 405 000 R 86 385 000 R 96 058 000
Total assets R 113 452 000 R 109 022 000 R 109 524 000
Net income R 14 833 000 R 13 425 000 R 12 334 000
Net profit R 46 014 000 R 43 785 000 R 45 661 000
Sales R 99 870 000 R 95 758 000 R 103 630 000
The _________ side of the statement of nancial position re ects the possessions of the business.
Select one:
a. asset
b. liability
c. income
d. expense
The correct answer is: asset
Question 9
Correct
Mark 1.00 out of 1.00
Which one of the following would appear on IBM’s statement of nancial position?
Select one:
a. Shareholders’ interest
b. Operating pro t
c. Returns
d. Provision for tax
The correct answer is: Shareholders’ interest
Question 10
Correct
Mark 1.00 out of 1.00
Financial ratios as such have little, if any, usage values and must be viewed against certain norms to give them usage values.
Which one of the following represents a comparison which is signi cant in this regard?
Select one:
a. A comparison of the current nancial ratios with the corresponding ratios in the past.
b. A comparison of the nancial ratios of the business to those of other industries in the country.
c. A comparison of the nancial ratios of the business with the norms for other industries on an international level.
d. A comparison of the nancial ratios with other nancial ratios of the same period.
The correct answer is: A comparison of the current nancial ratios with the corresponding ratios in the past.
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