MANAGING FINANCIAL RESOURCES QUIZ

The book of original entries is: Inventory management is defined as the:

JOURNAL MANAGEMENT AND CONTROL OF INVENTORY

Assets are revenue generators in a company. Amount Where do costs related to inventory appear on an
received from selling an asset is an example of: organization’s financial statements?

CASH INFLOWS - CURRENT ASSET ON THE BALANCE SHEET

Credit management is an important tool used by
finance managers. Credit management means:
GRANTING MONEY ON CREDIT BASIS WHILE
CONSIDERING ALL THE TERMS ON WHICH IT IS BEING
GRANTED ON
- EXPENSES ON THE STATEMENT OF REVENUES
AND EXPENSES
BOTH OF THE ABOVE
What are costs associated with having more than
enough inventory in stock called?

Line of credit is a term frequently used in business OVERSTOCK COSTS

terminology. It refers to:
A financial statement which shows the profitability of
THE MAXIMUM AMOUNT OF LOAN AN the business for a given period of time?
ORGANIZATION CAN AVAIL
STATEMENT OF FINANCIAL PERFORMANCE
Paying habits of customer is considered an important
What is the order of recording of the entries made in
factor of:
the journal?
DETERMINING CREDIT POLICY FOR THE
CHRONOLOGICALLY
ORGANIZATION
Which is not a book of accounts?
Managers try to do their best while managing credit
system of entity. Poor management of credit system WORKSHEET
can lead to:
Which does not belong to the group?
DELAYED CONVERSION OF SALES INTO CASH
- ACCOUNTS PAYABLE
What is receivables management? - LAND
- CASH
KEEPING TRACK OF WHAT CUSTOMERS BUY ON
- DEPRECIATION (ans)
CREDIT FROM A COMPANY
Which is an internal user of financial statements?
The cash discount (also known as purchase discount or
sales discount) is given to customers for: MANAGEMENT
EARLY PAYMENTS

Which of the following might be attributed to efficient

inventory management?

- HIGH INVENTORY TURNOVER RATIO

- LOW INCIDENCE OF PRODUCTION SCHEDULE
DISRUPTIONS
- HIGH TOTAL ASSETS TURNOVER

ALL OF THE STATEMENTS ABOVE ARE CORRECT

Inventory is listed as a part of current assets. Stock or

inventory in an organization means:

ALL THE RAW MATERIAL. SEMI-FINISHED AND THE

FINISHED GOODS IN THE ORGANIZATION

Inventory and marketable securities are examples of:

CURRENT ASSETS

A retail company is a company that sell products to

customers or end-users. A major difference between a
manufacturing company and a retail company is:

THAT THE RETAIL COMPANY BUYS THE PRODUCTS

FROM THE MANUFACTURING COMPANY AND SELLS
THEM