LESSON OBJECTIVE
Assessment Criteria 4.1 Discuss the main financial statements Below are questions pertaining to lesson 11. Please ensure to answer each question correctly. 1. State the three most common financial statements prepared by businesses. 2. What is the name of the financial statement that shows how much profit or loss a company makes in a year? 3. A _________is a statement of a firm’s assets, liabilities and net worth. 4. What is the primary objective of a cashflow statement?
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LEARNING OUTCOME THREE: Be Able To Make Financial Decisions Based On Financial Information11/17/2016 LESSON OBJECTIVE
Assessment Criteria 3.3 Assess the viability of a project using investment appraisal techniques Below are questions pertaining to lesson 10. Please ensure to answer each question correctly. 1. What is the most common objective in investment appraisal? 2. Explain the payback period. 3. State two advantages of the IRR method. 4. True or False: All methods of investment appraisal, with the exception of ROCE, only relevant cash flows should be considered. LEARNING OUTCOME THREE: Be Able To Make Financial Decisions Based On Financial Information10/31/2016 LESSON OBJECTIVE
Assessment Criteria 3.2 Explain the calculation of unit costs and make pricing decisions using relevant information Below are questions pertaining to lesson 9. Please ensure to answer each question correctly. 1. Define Fixed Costs. 2. What is Senstivity Analysis? 3. True and False: Correct pricing of organisation's products or services is important for its profitability and survival. 4. A company has cost has follows:-Variable Costs:- $50,000 Fixed Costs: $30,000 Units Produced : 10,000 From the information above calculate the unit cost? LEARNING OUTCOME THREE: Be Able To Make Financial Decisions Based On Financial Information10/28/2016 LESSON OBJECTIVE
Assessment Criteria AC 3.1 Analyse budgets and make appropriate decisions Below are questions pertaining to lesson 8. Please ensure to answer each question correctly. 1. What is a budget? 2. True or False: Most organizations develop and make use of three different types of budgets. 3. Name the three types of operating budgets? 4. List two advantages of a cash budget. LEARNING OUTCOME TWO: Understand The Implications Of Finance As A Resource Within A Business10/18/2016 LESSON OBJECTIVE
Assessment Criteria AC 2.4 Explain the impact of finance on the financial statements Below are questions pertaining to lesson 7. Please ensure to answer each question correctly. 1. List the three main types of financial statements. 2. State the formula for working capital? 3. Define non-current assets. 4. True or False : Bank overdraft is an example of long-term liability. LEARNING OUTCOME TWO: Understand The Implications Of Finance As A Resource Within A Business10/18/2016 LESSON OBJECTIVE
Assessment Criteria AC 2.3 Assess the information needs of different decision makers Below are questions pertaining to lesson 6. Please ensure to answer each question correctly. 1. True or False: Stakeholders are persons who invest in the company only. 2. Users of financial statements are divided into how many groups? 3. List three external persons who are interested in the financial statements of a company. 4. True or False: Employees are not interested in the financial statements of a company. LEARNING OUTCOME TWO: Understand The Implications Of Finance As A Resource Within A Business10/18/2016 LESSON OBJECTIVE
Assessment Criteria AC 2.2 Explain the importance of financial planning Below are questions pertaining to lesson 5. Please ensure to answer each question correctly. 1. What is the purpose of financial planning? 2. True or False: Cash budget is one area of financial planning. 3. List three implications for a company, that can arise resulting from poor financial planning. 4. True or False: Management must have full awareness of the profitability versus liquidity trade off LEARNING OUTCOME TWO: Understand The Implications Of Finance As A Resource Within A Business10/18/2016 LESSON OBJECTIVE
Assessment Criteria AC 2.1 Analyse the costs of different sources of finance Below are questions pertaining to lesson 4. Please ensure to answer each question. 1. Define tangible cost. 2. What is an opportunity cost? 3. True or False: Income tax is a key source of funds that the government uses to fund its activities and serve the public. 4. What is the primary meaning of cost of capital? LESSON OBJECTIVE
Assessment Criteria AC 1.3 Evaluate appropriate sources of finance for a business project Below are questions pertaining to lesson 3. Please ensure to answer each question correctly. Berry Ltd. is considering how to finance the acquisition of a machine costing $750,000 with an operating life of five years. There are two financing options. Option 1: The machine could be leased for an annual lease payment of $679,985 or $56,665 monthly. Option 2: The machine could be bought using a loan from the bank paying a total of $778,525 or $64,877 monthly this includes processing fee from the bank.The life of the loan is seven years. 1. Recommend to Berry Ltd the most suitable source of finance for the purchase of the equipment. 2. Discuss the attractions of leasing as a source of short-term and long-term finance. 3. XYZ Ltd needs $100 million over the coming year to finance an expansion of the business.Cash flow from operations is expected to be $40m in the coming year. The remaining $60m can be financed from existing cash balance of $80m. Advise the firm if they should raise external finance to finance the proposed expansion or finance the difference from their existing cash balance. 4. True or false: Matching term of finance to the term of a project is important for businesses. Give reason for your answer LESSON OBJECTIVE
Assessment Criteria AC 1.2 Assess the implications of the different sources Below are questions pertaining to lesson 2. Please ensure to answer each question correctly. 1. Identify the advantages of a firm using long - term loan to finance the purchase of a fixed assets instead of using:- - Retained earnings - Debentures - Share issue 2. Jay has been operating his company for the last ten years, however, the company is unable to meet its obligations to its long and short term creditors on a timely basis. Recommend to Jay if he should file for bankruptcy or take a loan from a financial institution. 3. Assess the legal, financial,control and bankruptcy implications of the following sources of finance: - Long Term Bank Loan - Hire Purchase - Leasing 4. What is share dilution? |
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