QUIZ NO: 06
ACC 501-WINTER 2016
Max Marks: 10
Note: Highlight the correct answer, out of the four choices given for each question.
1. The average time between purchasing or acquiring inventory and receiving cash proceeds from its sale is called ————–.
a) Operating Cycle
b) Cash Cycle
c) Receivable period
d) Inventory period
2. Which of the following does not affect cash cycle of a company?
a) Inventory period
b) Accounts receivable period
c) Accounts payable turnover
d) None of the given option
3. Mr.Munir purchased goods of Rs.100,000 on June01, 2006 from Zeeshan and brothers on credit terms of 3/10, net 30. On June 09 Mr. Munir decided to make payment to Zeeshan and brothers. How much he would pay to Zeeshan and brothers.
4. A firm has cash cycle of 100 days. It has an inventory turnover of 5 and receivable turnover of 2. What would be its accounts payable turn over?
a) 3.347 approximately
b) 5.347 approximately
c) 2.347 approximately
d) 6.253 approximately
5. During the financial year 2005-2006 ended on June 30, the cash cycle of Climax company was 150 days, and its payable turnover was 5. What was the operating cycle of the company during 2005-2006?
a) 234 days
b) 223 days
c) 245 days
d) 230 days
6. Which of the following is the cheapest source of financing available to a firm?
a) Bank loan
b) Commercial papers
c) Trade credit
d) None of the given options.
7. Which of the following illustrates the use of a hedging (or matching) approach to financing?
a) Short-term assets financed with long-term liabilities.
b) Permanent working capital financed with long-term liabilities.
c) Short-term assets financed with equity.
d) All assets financed with a 50 percent equity, 50 percent long-term debt mixture
8. ————— is an incentive offered by a seller to encourage a buyer to pay within a stipulated time.
a) Cash discount
b) Quantity discount
c) Float discount
d) All of the given options
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more