Short-Term Financing & Planning Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Bailey buys products from manufacturers using credit. Which of the following cycles would be best for his business?

Question 2 2. What is the last step in the cash conversion cycle?

Question 3 3. Rent or mortgage payments are examples of which of the following?

Question 4 4. Danny buys supplies for his company by paying when he buys the supplies (i.e., paying cash). Which of the following cycles is best for him to use?

Question 5 5. How is the operating cycle calculated?

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Question 6 6. Matching business expenses to income is a fundamental principle of which of the following?

Question 7 7. To determine the ending cash balance, start with the beginning cash balance, then _____ cash inflows and _____ cash outflows.

Question 8 8. Examples of cash outflows include:

Question 9 9. Using cash inflows and cash outflows, what does a cash budget allow a company to do?

Question 10 10. How are collections from current and past sales reflected on a cash budget?

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Question 11 11. How does a cash budget influence management decisions?

Question 12 12. What is the cash conversion cycle if the inventory period is 90 days, the accounts receivable period is 30 days and the accounts payable period is 60 days?

Question 13 13. Cash and supplies are examples of which of the following?

Question 14 14. Business assets minus business liabilities equals which of the following?

Question 15 15. Why can net working capital be misleading?

Short-Term Financing & Planning Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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