Processes of Financial Management (HSC SSCE Business Studies): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
ShowHide
Practise the questions
10 questions from this quiz
What is the matching principle in finance?
What is the matching principle in finance?
Match loan term to asset economic lifetime
What problem occurs when short-term finance is used for long-term assets?
What problem occurs when short-term finance is used for long-term assets?
Loan repaid before asset generates cash
What problem occurs when long-term finance is used for short-term assets?
What problem occurs when long-term finance is used for short-term assets?
Reduces profits unnecessarily long-term
How are short-term assets defined?
How are short-term assets defined?
Items used/converted to cash within 12m
What is appropriate finance for inventory (stock)?
What is appropriate finance for inventory (stock)?
Trade credit (30-90 days)
What is appropriate finance for a new building?
What is appropriate finance for a new building?
Mortgage (15-25 years)
What can companies do that unincorporated businesses cannot?
What can companies do that unincorporated businesses cannot?
Issue shares and debentures
How does strong equity capital affect borrowing?
How does strong equity capital affect borrowing?
More borrowing opportunities available
What is credit rating?
What is credit rating?
Assessment of reliability in meeting debts
What does economic lifetime of an asset mean?
What does economic lifetime of an asset mean?
Period asset generates value/is useful