Financial Planning and Control KCQ Solutions

FINANCIAL PLANNING
AND
CONTROL
KCQ SOLUTIONS
SECOND SEMSTER 2022


BY: MTHOMBENI : 0767297208

1

, VERSION 1


1. Liquidity is an entity’s ability to settle its current liabilities as they become due
Select one:

 True
 False

2. The sales of AMI Limited for 2022 were forecast at R1 800 000, of which 60% is expected to be on
credit. The debtor’s collection period is expected to be 36.5 days and the creditors payment period is
estimated to be 73 days. How much is the expected accounts receivable on 31 December 2022.
A. R108 000

B. R216 000
C.R1 080 000
D.R180 000
Calculations
 R1 800 000 X60%= R1 080 000
 R1 080 000 /365X36.5=R108 000




3. A statement of comprehensive income shows the financial performance of a business over a certain
period.
Select one:

 True
 False


4. Which one of the following refers to the ability of an entity to settle all its liabilities?
A. Liquidity
B. Financing
C. Feasibility
D. Solvency


5. Interest on loan may appear in a pro forma statement of comprehensive income as well as a cash
budget.
Select one:

 True
 False
 It fits into both since it’s a cash item




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