Learning Activity 3_ Attempt review

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School

Kaplan Business School *

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Course

FNS50322

Subject

Finance

Date

Jan 9, 2024

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pdf

Pages

5

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15/11/2023, 15:10 Learning Activity 3: Attempt review https://financeinstitute.ecampusv2.com.au/mod/quiz/review.php?attempt=238479&cmid=3744 1/5 Started on Wednesday, 15 November 2023, 4:49 PM State Finished Completed on Wednesday, 15 November 2023, 5:10 PM Time taken 21 mins 3 secs Grade 16.00 out of 16.00 ( 100 %) Question 1 Correct Mark 1.00 out of 1.00 Question 2 Correct Mark 1.00 out of 1.00 Match the definitions on the left with the correct drop down on the right, in the table below: Revenues earned or expenses incurred which impact a company's net income on the income statement. They may also affect the balance sheet, as they involve non-cash assets and liabilities. The wealth in the form of money or property owned by a business. Or the owner’s contribution to or interest in a business. The value of ownership interest in the business, calculated by deducting liabilities from assets. Any financial expense or amount owed. Or a current obligation of the company arising from past events, the settlement of which is expected to result in an outflow from the entity of resources Accruals Capital Equity Liability Your answer is correct. Equity refers to the net assets or residual interest of an owner or shareholder and is expressed as: a. Assets - Liabilities = Equity b. Liabilities + Assets = Equity c. Assets divided by Assets = Equity d. Current Assets divided by Current Liabilities = Equity e. Interest payable less interest in advance = Equity
15/11/2023, 15:10 Learning Activity 3: Attempt review https://financeinstitute.ecampusv2.com.au/mod/quiz/review.php?attempt=238479&cmid=3744 2/5 Question 3 Correct Mark 1.00 out of 1.00 Question 4 Correct Mark 1.00 out of 1.00 Question 5 Correct Mark 1.00 out of 1.00 Question 6 Correct Mark 1.00 out of 1.00 Expenses are the opposite of revenues. Wealth decreases because: a. Operating costs have to be paid b. Customers have to be given the goods they have paid for c. Long term assets may wear out as they are used to earn revenue and liabilities may be incurred as part of the process. d. All of the above When expenses are greater than the revenue it is referred to as: a. Liability b. Net Cash c. Profit d. Depreciation e. Loss When the revenue is greater than expenses it is called: a. Asset b. Profit c. Cash in the Bank d. Loss e. Leverage When we look at understanding financials for clients, the three key financial statements are referred to as: a. Income Statement, Statement of Cash Flow and the Balance Sheet b. Statement of Position, Statement of Performance and Statement of Cash Flow c. Income Statement, Profit and Loss Report, Statement of Cash at Bank d. Tax return, Assets statement, Depreciation Statement
15/11/2023, 15:10 Learning Activity 3: Attempt review https://financeinstitute.ecampusv2.com.au/mod/quiz/review.php?attempt=238479&cmid=3744 3/5 Question 7 Correct Mark 1.00 out of 1.00 Question 8 Correct Mark 1.00 out of 1.00 Question 9 Correct Mark 1.00 out of 1.00 Question 10 Correct Mark 1.00 out of 1.00 Which of the following Cash Flow inflows and outflows would NOT be classified as an investment activity? a. Sales of the property, plant and equipment that a business uses b. Purchase of shares held as investment c. Cash received from issue of shares d. Acquisition of property, plant and equipment e. Acquisition of shares and debentures for investment purposes By analysing the cash flow statement the user can evaluate management’s strategy for managing cash and make a better judgment of the business’s liquidity, solvency risk and opportunities than could be made just from the balance sheet and income statement. Select one: True False Cash flow analysis is an important managerial activity to ensure there is evidence of the ongoing liquidity of the business. Select one: True False Current liabilities are debts or estimated claims on the resources of a company that are expected to be paid within the normal operation cycle of the enterprise (usually one year). Select one: True False
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15/11/2023, 15:10 Learning Activity 3: Attempt review https://financeinstitute.ecampusv2.com.au/mod/quiz/review.php?attempt=238479&cmid=3744 4/5 Question 11 Correct Mark 1.00 out of 1.00 Question 12 Correct Mark 1.00 out of 1.00 Question 13 Correct Mark 1.00 out of 1.00 Question 14 Correct Mark 1.00 out of 1.00 If cash flow is tight a business should always borrow money to pay expenses. Select one: True False Shareholder Equity is the sum of shareholders’ direct investment (share capital) and indirect investment (retained profits and reserves). Select one: True False The Income Statement for a business provides information on the business’s profitability for a period of time – matching revenues during a period against expenses incurred in earning the revenue. Select one: True False The key test for revenue recognition is whether the goods or services have been delivered or provided to the customer. The wealth increases because the customer has paid cash for the goods or has promised to pay cash (accounts receivable for goods or services). Select one: True False
15/11/2023, 15:10 Learning Activity 3: Attempt review https://financeinstitute.ecampusv2.com.au/mod/quiz/review.php?attempt=238479&cmid=3744 5/5 Question 15 Correct Mark 1.00 out of 1.00 Question 16 Correct Mark 1.00 out of 1.00 The statement of cash flows is a financial statement that summarises the amount of cash and cash equivalents being received and being paid Select one: True False The three main elements of a Balance Sheet are assets, liabilities and owners’ net equity: Select one: True False