HSC Business Studies 2000-2015 - Finance Questions

Beschreibung

Quiz am HSC Business Studies 2000-2015 - Finance Questions , erstellt von Daniel Miller am 17/05/2016.
Daniel Miller
Quiz von Daniel Miller, aktualisiert more than 1 year ago
Daniel Miller
Erstellt von Daniel Miller vor etwa 8 Jahre
13
1

Zusammenfassung der Ressource

Frage 1

Frage
What is a source of new capital for a public company?
Antworten
  • Primary market of the Australian Securities Exchange
  • Secondary market of the Australian Securities Exchange
  • Primary market of the Australian Securities and Investment Commission
  • Secondary market of the Australian Securities and Investment Commission

Frage 2

Frage
What is a characteristic of external equity finance?
Antworten
  • Specific maturity date
  • Low interest payments
  • Fixed returns to owners
  • Diluted business ownership

Frage 3

Frage
What is the net profit ratio (net profit ÷ sales) for 2014?
Antworten
  • 10%
  • 20%
  • 25%
  • 47%

Frage 4

Frage
Which of the following describes the change in gross profit ratio and expense ratio from 2014 to 2015?
Antworten
  • A
  • B
  • C
  • D

Frage 5

Frage
A business is planning to increase its market share by merging with a competitor. What financial objective does this best illustrate?
Antworten
  • Growth
  • Liquidity
  • Profitability
  • Solvency

Frage 6

Frage
Which of the following would be found on an income statement?
Antworten
  • Accounts payable
  • Gross profit
  • Intangibles
  • Net assets

Frage 7

Frage
Why would a business choose debentures as a source of funding?
Antworten
  • To reduce financial risk
  • To provide security over assets
  • To retain ownership and control
  • To obtain cheap, short-term finance

Frage 8

Frage
Which of the following statements is true about liquidity for Kerry's Warehouse in 2014?
Antworten
  • It is better than industry average and has improved since 2013.
  • It is better than industry average and has worsened since 2013.
  • It is worse than industry average and has improved since 2013.
  • It is worse than industry average and has worsened since 2013.

Frage 9

Frage
Which of the following statements is true about gearing for Kerry's Warehouse in 2014?
Antworten
  • It is better than industry average and has improved since 2013.
  • It is better than industry average and has worsened since 2013.
  • It is worse than industry average and has improved since 2013.
  • It is worse than industry average and has worsened since 2013.

Frage 10

Frage
What does the expense ratio measure?
Antworten
  • Efficiency
  • Growth
  • Profitability
  • Solvency

Frage 11

Frage
Which of the following would immediately improve the working capital of a business?
Antworten
  • Increasing credit sales
  • Using sale and lease back
  • Preparing a cash flow statement
  • Repaying debt to creditors more quickly

Frage 12

Frage
Which of the following would improve the financial position of a business?
Antworten
  • Lower current ratio and lower accounts receivable turnover ratio
  • Higher current ratio and lower accounts receivable turnover ratio
  • Lower current ratio and higher accounts receivable turnover ratio
  • Higher current ratio and higher accounts receivable turnover ratio

Frage 13

Frage
Auditors have discovered that the value of legal fees paid has been included in the asset value of a new warehouse purchased by a business. What limitation of financial reports does this show?
Antworten
  • Capitalised expenses
  • Debt repayments
  • Normalised earnings
  • Timing issues

Frage 14

Frage
What would be the best strategy for a business to increase its gross profit?
Antworten
  • Use cost centres
  • Reduce fixed costs
  • Minimise expenses
  • Use sale and leaseback

Frage 15

Frage
Which of the following groups would suffer the worst financial impact as a result of an increase in the value of the Australian dollar?
Antworten
  • Japanese shareholders of an Australian bank
  • Australian producers selling wine to New Zealand
  • Australian car makers purchasing inputs from Italy
  • American travel agents organising tours for Australians

Frage 16

Frage
Compared to the industry averages, this business has
Antworten
  • better solvency and better liquidity.
  • better solvency and poorer liquidity.
  • poorer solvency and better liquidity.
  • poorer solvency and poorer liquidity.

Frage 17

Frage
How is the role of the Reserve Bank of Australia best described?
Antworten
  • It provides loans to small businesses.
  • It provides insurance services for farmers.
  • It facilitates the buying and selling of shares.
  • It oversees the stability of the financial system.

Frage 18

Frage
What does a cash flow statement show?
Antworten
  • Assets
  • Liquidity
  • Profitability
  • Receivables

Frage 19

Frage
What is a derivative?
Antworten
  • An agreement to buy a foreign currency at an agreed price on some day in the future
  • An assessment of the reliability of a customer’s capacity to make timely payments
  • A method of protecting the business against seizure of its assets by a foreign government
  • A method of payment that allows a buyer to gain access to goods immediately and promise to pay later

Frage 20

Frage
In 2010 an Australian company bought products from the USA. If the Australian dollar rises in value against the US dollar before the payment is made, which of the following would be true?
Antworten
  • The company’s credit risk will increase.
  • The cost of insuring the product will increase.
  • The purchase price of the product will be greater
  • The company will have more funds available for other uses.

Frage 21

Frage
Which of the following are BOTH external sources of funds for a business?
Antworten
  • Bank loan, mortgage
  • Retained profits, leasing
  • Owner’s Equity, mortgage
  • Retained profits, factoring

Frage 22

Frage
What might happen as a result of a company having highly undervalued plant and equipment on its balance sheet?
Antworten
  • Asset stripping
  • Growth in equity
  • Capital expansion
  • Factoring of liabilities

Frage 23

Frage
A business uses factoring to pay creditors. Which financial objective is the business trying to achieve?
Antworten
  • Efficiency
  • Liquidity
  • Profitability
  • Solvency

Frage 24

Frage
An Australian business is negotiating an order with a new overseas customer. Which method of payment would involve the greatest risk for the Australian business?
Antworten
  • Open account
  • Letter of credit
  • Bill of exchange
  • Payment in advance

Frage 25

Frage
How has the financial position of the business changed from 2008 to 2009?
Antworten
  • Reduced solvency and increased risk
  • Reduced solvency and decreased risk
  • Improved solvency and increased risk
  • Improved solvency and decreased risk

Frage 26

Frage
What is the net profit ratio (net profit /sales) in 2008?
Antworten
  • 25%
  • 30%
  • 45%
  • 50%

Frage 27

Frage
Which statement describes how the financial position of Danok Ltd changed between 2008 and 2009?
Antworten
  • Gross profit ratio is unchanged and the expense ratio has improved.
  • Gross profit ratio has increased and the expense ratio has decreased.
  • Gross profit ratio has decreased and the expense ratio is unchanged.
  • Gross profit ratio has improved and the expense ratio has increased.

Frage 28

Frage
What is ONE use of a cash flow statement for management?
Antworten
  • To negotiate finance
  • To identify new markets
  • To determine the value of intangibles
  • To calculate depreciation of non-current assets

Frage 29

Frage
A business aims to increase its sales from $160 000 to $300 000 over the next 12 months. How might the business achieve this?
Antworten
  • By increasing advertising
  • By decreasing owners’ equity
  • By increasing mortgage repayments
  • By decreasing the size of the research team

Frage 30

Frage
One example of managing the sales mix for revenue control is to
Antworten
  • set sales objectives to achieve target profits.
  • judge a manager’s performance against sales.
  • determine a pricing policy for each product sold.
  • decide which range of products to offer customers.

Frage 31

Frage
Oz Juice signed a contract with an overseas supplier for future purchases of pineapples at a set exchange rate for $US. Which term best describes this financial strategy?
Antworten
  • Hedging
  • Insurance
  • Bill of exchange
  • Overseas borrowing

Frage 32

Frage
Which of the following best matches source of finance to business purpose?
Antworten
  • Increasing bank overdraft to buy a delivery van
  • Applying for a government grant to pay creditors
  • Using retained earnings to expand into new markets
  • Selling accounts receivable to replace furniture and fittings

Frage 33

Frage
Which of the following are external sources of funds for businesses?
Antworten
  • Grants, debentures, leasing, mortgage
  • Venture capital, loans, drawings, factoring
  • Accounts payable, owners’ equity, leasing, discounts
  • Bank overdraft, retained profits, factoring, bank bills

Frage 34

Frage
A business sells its accounts receivable to improve cash flow. Which of the following best describes this strategy?
Antworten
  • Factoring
  • Equity financing
  • Sale and lease back
  • Accounts receivable turnover

Frage 35

Frage
Which statement best describes the changed financial position?
Antworten
  • Solvency has declined and profitability has increased from 2006 to 2007.
  • Profitability has decreased and solvency has improved from 2006 to 2007.
  • The expense ratio has improved and is closer to the industry average in 2007 than in 2006.
  • Solvency in 2007 is better than industry average and the expense ratio has improved from 2006.

Frage 36

Frage
What may have contributed to the change in the expense ratio?
Antworten
  • Increase in cash
  • Increase in purchases
  • Decrease in drawings
  • Decrease in interest rates

Frage 37

Frage
The financial manager of a furniture company has determined that improving turnover of accounts receivable will be the goal for the next financial year. Which objective is the financial manager aiming to improve?
Antworten
  • Efficiency
  • Liquidity
  • Profitability
  • Solvency

Frage 38

Frage
What is the main role of the Australian Stock Exchange?
Antworten
  • Conducting a public market in shares and debentures
  • Buying and selling securities in Australian businesses
  • Providing prudential supervision of financial institutions
  • Ensuring investors create economic growth and employment prospects

Frage 39

Frage
What is the current ratio (current assets/current liabilities)?
Antworten
  • 0.33:1
  • 1.25:1
  • 1.5:1
  • 3:1

Frage 40

Frage
What is the gearing ratio (total liabilities/owner's equity)?
Antworten
  • 1.25:1
  • 1.33:1
  • 1.5:1
  • 2:1

Frage 41

Frage
Which of the following is an advantage of using owner’s equity as a source of funds?
Antworten
  • The owner’s unproductive assets are liquidated.
  • There is no change of ownership as funding is internal.
  • The business can make tax savings in periods of high inflation.
  • The business is able to sustain prolonged periods of operating losses.

Frage 42

Frage
A clothing retailer places an order for goods from an overseas supplier for delivery within one month. The retailer negotiates to pay the account at the exchange rate existing at the time the order is placed. Which of the following is the retailer doing?
Antworten
  • Hedging
  • Factoring
  • Cushioning the economic cycle
  • Engaging in foreign direct investment

Frage 43

Frage
What is the value of the gross profit ratio (gross profit/sales)?
Antworten
  • 1:12
  • 1:6
  • 1:4
  • 1:1.33

Frage 44

Frage
What is the return on owner’s equity (net profit/total equity)?
Antworten
  • 8.3%
  • 12.5%
  • 37.5%
  • 150%

Frage 45

Frage
In which two months might Nic’s Cafe experience a liquidity problem?
Antworten
  • October and November
  • November and December
  • November and January
  • December and January

Frage 46

Frage
Which of the following strategies would be most appropriate to solve this liquidity problem at Nic’s Cafe?
Antworten
  • Issue debentures
  • Obtain a mortgage
  • Seek venture capital
  • Apply for an overdraft

Frage 47

Frage
Domestic interest rates in Australia are below those of its trading partners. The Aussie Hat Company has borrowed funds to service the debt of an overseas subsidiary. Which of the following will be the impact of this financial strategy?
Antworten
  • Increased gearing & Improved solvency
  • Increased gearing & Reduced solvency
  • Reduced accounts payable & Improved owner's equity
  • Reduced accounts payable & Reduced owner's equity

Frage 48

Frage
JJ’s Wool Company is considering purchasing 48% of shares in Hunter Cotton Ltd. Audited accounts show that the plant and equipment of Hunter Cotton Ltd are under-valued. JJ’s Wool Company hopes to profit if Hunter Cotton Ltd buys back the shares to maintain control of its company. Which of the following lists two ethical aspects that JJ’s Wool Company should consider?
Antworten
  • Asset stripping and lease back
  • Asset stripping and corporate raiding
  • Inappropriate cut-off periods and misuse of funds
  • Inappropriate cut-off periods and corporate raiding

Frage 49

Frage
Which of the following statements is correct?
Antworten
  • Net profit ratios compare favourably with the industry average.
  • There has been an improvement in the expense ratio from 2003 to 2004.
  • The expense ratio in 2004 compares favourably with the industry average.
  • Each of the profitability ratios indicates performance below industry averages.

Frage 50

Frage
Which of the following global changes could explain the increase in the 2004 expense ratio for Zahra’s Coffee Imports Pty Ltd?
Antworten
  • A depreciation of the Australian dollar
  • An appreciation of the Australian dollar
  • Widespread dumping of coffee due to excess supply
  • A new free trade agreement with one of the countries supplying this company

Frage 51

Frage
Which of the following ratios would Mitchell use to determine if his firm was using its resources to ensure it can meet its financial commitments in the longer term?
Antworten
  • Gross profit
  • Debt to equity
  • Return on owners’ equity
  • Accounts receivable turnover

Frage 52

Frage
An online supermarket business has decided to lease delivery vehicles rather than purchase them. What is the purpose of this strategy?
Antworten
  • To limit the capital costs of the business
  • To ensure that only new vehicles are used
  • To minimise the long-term costs of vehicles to the business
  • To avoid the registration and insurance costs of vehicle ownership

Frage 53

Frage
Calculate the value of Retained Profits.
Antworten
  • 0
  • 15 000
  • 25 000
  • 50 000

Frage 54

Frage
Correct Printing has decided to use an overdraft facility to purchase an additional printing machine. How would this affect the Balance Sheet?
Antworten
  • Increase Owners’ Equity and decrease Cash at Bank
  • Increase Current Liabilities and increase Non-current Assets
  • Decrease Cash at Bank and increase Non-current Assets
  • Decrease Retained Profits and increase Non-current Assets

Frage 55

Frage
In 1989, an Australian company purchased a building in the USA for $US200 000 to store the products it distributes in the USA. The purchase was financed by a Federal Government export grant. Which ratio from the 2004 financial reports is affected by the historical cost method of accounting for this purchase?
Antworten
  • Expense
  • Working capital
  • Return on owners’ equity
  • Accounts receivable turnover

Frage 56

Frage
Which of the following would best describe the role of a merchant bank?
Antworten
  • To monitor the activities of publicly-listed companies
  • To act as banker and financial agent to the federal government
  • To provide borrowing and lending services, primarily to the business sector
  • To provide loans to the corporate sector through receipts of insurance premiums

Frage 57

Frage
Which of the following statements describes the performance of Acrid Waste Services?
Antworten
  • Debt to Equity Ratio is below the industry average
  • Debt to Equity Ratio exceeds the industry average
  • Working Capital Ratio exceeds the industry average
  • Working Capital Ratio is equal to the industry average

Frage 58

Frage
Which statement best describes the situation represented in the graph?
Antworten
  • Year 1 was a period of decreasing expenses and Year 2 was a period of increasing expenses
  • Year 1 was a period of increasing expenses and Year 2 was a period of decreasing expenses
  • Year 1 was a period of improved sales performance and Year 2 was a period of increasing expenses.
  • Year 1 was a period of improved sales performance and Year 2 was a period of decreasing expenses.

Frage 59

Frage
A cash-flow statement for a retail business would include which of the following?
Antworten
  • Cash sales
  • Credit purchases
  • Credit sales
  • Receivables

Frage 60

Frage
The General Manager of Yeo Enterprises meets with directors once a month to compare actual and planned financial performance. Which of the following best describes this management process?
Antworten
  • Controlling
  • Organising
  • Planning
  • Staffing

Frage 61

Frage
Staple Stationery Supplies decides to use factoring to improve cash flow. This strategy would involve which of the following?
Antworten
  • Selling accounts receivable to a collection agency
  • Selling goods on credit but with a specified date for payment
  • Selling the factors of production for cost, plus a small mark-up
  • Selling unused factory equipment to make up for the short-fall in cash flow

Frage 62

Frage
A balance sheet includes which of the following?
Antworten
  • Expenses
  • Intangibles
  • Return on owners’ equity
  • Sales

Frage 63

Frage
How would the Australian tourism industry be affected by a fall in the value of the Australian dollar compared to other currencies?
Antworten
  • Increased numbers of Australians travelling overseas and decreased numbers of overseas visitors to Australia
  • Increased numbers of Australians travelling overseas and increased numbers of overseas visitors to Australia
  • Decreased numbers of Australians travelling overseas and increased numbers of overseas visitors to Australia
  • Decreased numbers of Australians travelling overseas and decreased numbers of overseas visitors to Australia

Frage 64

Frage
What is the function of management that involves comparing sales figures for a financial period to the forecast of sales for the same period?
Antworten
  • Collecting market research data
  • Comparing cash and credit sales
  • Implementing financial plans
  • Monitoring the achievement of marketing plans

Frage 65

Frage
What is the variable cost of producing 3000 units?
Antworten
  • $0
  • $500
  • $1000
  • $3000

Frage 66

Frage
What is the net profit from selling 6000 units?
Antworten
  • $500
  • $1000
  • $1500
  • $2000

Frage 67

Frage
Which of the following statements about the efficiency of Abix International Ltd is correct?
Antworten
  • The expense ratio has improved while the accounts receivable turnover ratio has deteriorated.
  • The expense ratio has improved and the accounts receivable turnover ratio has also improved
  • The expense ratio has deteriorated while the accounts receivable turnover ratio has improved.
  • The expense ratio has deteriorated and the accounts receivable turnover ratio has also deteriorated.

Frage 68

Frage
What is the value of the Cost of Goods Sold for Jack’s Computer Services Pty Ltd?
Antworten
  • $250
  • $500
  • $2500
  • $3000

Frage 69

Frage
The Gross Profit Ratio has increased from 40% in 2001 to 60% in 2002, while revenue and expenses remained the same. What was the net profit or loss in 2001?
Antworten
  • $750 net loss
  • $500 net loss
  • $750 net profit
  • $2000 net profit

Frage 70

Frage
Which of the following is an example of long-term borrowing?
Antworten
  • Bank bills
  • Grants
  • Mortgage
  • Overdraft

Frage 71

Frage
Which of the following best indicates the solvency of a business?
Antworten
  • Current ratio
  • Expense ratio
  • Net profit ratio
  • Debt to equity ratio

Frage 72

Frage
Which strategy could a business use to effectively manage receivables?
Antworten
  • Offering discounts for early payment
  • Increasing the price of the product
  • Taking out a short-term loan
  • Increasing its overdraft

Frage 73

Frage
Which of the following best describes hedging?
Antworten
  • Using transfer pricing between subsidiaries
  • Minimising the effects of the global business cycle
  • Protecting against fluctuating exchange rates
  • Reducing credit risks on international transactions

Frage 74

Frage
Which of the following would be an effective management strategy to improve the long-term profitability of a business?
Antworten
  • Altering the credit terms to ensure early payment of receivables
  • Improving the efficiency of cost centres
  • Selling of non-productive assets
  • Factoring of accounts receivable

Frage 75

Frage
Which of the following methods of payment represents the least level of risk for exporters?
Antworten
  • Bill of exchange
  • Letter of credit
  • Open account
  • Pre-payment

Frage 76

Frage
Which of the following has been a consequence of deregulation of financial markets?
Antworten
  • An increase in the use of fixed exchange rates
  • An increase in foreign direct investment
  • Greater influence of trading blocs
  • Increased mobility within international labour markets

Frage 77

Frage
Which of the following is a good measure of return on owners’ equity?
Antworten
  • Gearing
  • Liquidity
  • Profitability
  • Solvency

Frage 78

Frage
Which of the following would describe the financial position of this business in 2001 compared with 2000?
Antworten
  • Increased liquidity and increased solvency
  • Increased liquidity and reduced solvency
  • Reduced liquidity and increased solvency
  • Reduced liquidity and reduced solvency
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