MAC3702
Assignment 1 Semester 1 2025
Unique Number:
Due Date: April 2025
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, MAC3702-25-S1 Welcome Message Assessment 1
QUIZ
Monday, 11 March 2025, 12:01 PM
Finished
Monday, 11 March 2025, 1:02 PM
59 mins 50 secs
18.00/20.00
out of 100.00
Complete
Mark 1.00 out of 1.00
The following statements with regards to credit decisions and trade-offs are given.
(a) Price elasticity measures the responsiveness of the demand for a product to a
change in price.
(b) The granting of credit can be thought of as a trade-off between holding cash and
holding accounts receivable.
(c) When an increase in sales occurs because of increased credit terms, the gains in
sales revenue will be offset by increased inventory holding costs, increased creditors,
increase in cost of �nancing debtors and incurrence of bad debts.
(d) Companies targets sales as a method to increase pro�tability. When sales
increase and paid for by customers in cash, the company will bene�t by having an
increase in pro�ts.
(e) Granting of credit to customers can be seen as a trade-off between holding
inventory and holding accounts receivable.
Which of the above statements are ?
a. Options (a), (b) and (c).
b. Options (a), (b), (c), (d) and (e)
c. Options (b), (c), (d) and (e)
d. Options (a), (c) and (e)
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Company A currently have debt to the value of R3 million. The equity value is
R3 750 000. They want to invest in a new capital project to the value of R2 500 000.
The targeted capital structure they are working towards is 50% debt, 50% equity.
How will the amount of R2 500 000 be �nanced for the company to meet the targeted
capital structure?
a. R1 1000 000 debt �nance and R1 400 000 equity �nance
b. R875 00 debt �nance and R1 625 000 equity �nance
c. Equity to the value of R875 000 and debt to the value of R1 625 000
d. Equity �nance to the value of R1 625 000 and debt �nance to the value of
R875 000.
Complete
Mark 1.00 out of 1.00
Which of the following statement/s is/are more accurate?
a) Companies with an aggressive working capital policy usually do not have big
cash reserves to take advantage of asset acquisition opportunities that may arise.
b) Debtors’ time lag is an indication of how long it takes the company to convert its
resource inputs into cash for companies that sell on credit.
c) A company’s working capital typically consists of current assets, long term
investments and inventory.
d) Increase in sales will have no bearing on company’s working capital
requirements.
Choose the correct statement or combination of statements:
a. Statements (c) and (d)
b. Statement (a)
c. Statement (b)
d. Statements (a) and (b)
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Mark 1.00 out of 1.00
Which of the following statements regarding the asset turnover ratio are more
accurate?
a) The ratio shows how many rands of sales are generated from each rand invested
in the assets of the business.
b) The ratio indicates effective use of property, plant and equipment in generating
revenue for the business.
c) The ratio shows which assets are more effective in generating revenue for the
business.
d) The ratio may be used to indicate possible impairments in the assets of the
business.
e) The ratio indicates the effectiveness of the assets in producing pro�ts for the
business.
a. Options (a), (b) and (d)
b. Options (b), (c) and (e)
c. Options (a) and (d)
d. Options (b) and (c)
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Distribution of this document is illegal R13,625 per year?
Assignment 1 Semester 1 2025
Unique Number:
Due Date: April 2025
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, MAC3702-25-S1 Welcome Message Assessment 1
QUIZ
Monday, 11 March 2025, 12:01 PM
Finished
Monday, 11 March 2025, 1:02 PM
59 mins 50 secs
18.00/20.00
out of 100.00
Complete
Mark 1.00 out of 1.00
The following statements with regards to credit decisions and trade-offs are given.
(a) Price elasticity measures the responsiveness of the demand for a product to a
change in price.
(b) The granting of credit can be thought of as a trade-off between holding cash and
holding accounts receivable.
(c) When an increase in sales occurs because of increased credit terms, the gains in
sales revenue will be offset by increased inventory holding costs, increased creditors,
increase in cost of �nancing debtors and incurrence of bad debts.
(d) Companies targets sales as a method to increase pro�tability. When sales
increase and paid for by customers in cash, the company will bene�t by having an
increase in pro�ts.
(e) Granting of credit to customers can be seen as a trade-off between holding
inventory and holding accounts receivable.
Which of the above statements are ?
a. Options (a), (b) and (c).
b. Options (a), (b), (c), (d) and (e)
c. Options (b), (c), (d) and (e)
d. Options (a), (c) and (e)
1 of 20 2025/03/07, 13
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Distribution of this document is illegal R13,625 per year?
, Complete
Mark 1.00 out of 1.00
Company A currently have debt to the value of R3 million. The equity value is
R3 750 000. They want to invest in a new capital project to the value of R2 500 000.
The targeted capital structure they are working towards is 50% debt, 50% equity.
How will the amount of R2 500 000 be �nanced for the company to meet the targeted
capital structure?
a. R1 1000 000 debt �nance and R1 400 000 equity �nance
b. R875 00 debt �nance and R1 625 000 equity �nance
c. Equity to the value of R875 000 and debt to the value of R1 625 000
d. Equity �nance to the value of R1 625 000 and debt �nance to the value of
R875 000.
Complete
Mark 1.00 out of 1.00
Which of the following statement/s is/are more accurate?
a) Companies with an aggressive working capital policy usually do not have big
cash reserves to take advantage of asset acquisition opportunities that may arise.
b) Debtors’ time lag is an indication of how long it takes the company to convert its
resource inputs into cash for companies that sell on credit.
c) A company’s working capital typically consists of current assets, long term
investments and inventory.
d) Increase in sales will have no bearing on company’s working capital
requirements.
Choose the correct statement or combination of statements:
a. Statements (c) and (d)
b. Statement (a)
c. Statement (b)
d. Statements (a) and (b)
2 of 20 2025/03/07, 13
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Distribution of this document is illegal R13,625 per year?
, Complete
Mark 1.00 out of 1.00
Which of the following statements regarding the asset turnover ratio are more
accurate?
a) The ratio shows how many rands of sales are generated from each rand invested
in the assets of the business.
b) The ratio indicates effective use of property, plant and equipment in generating
revenue for the business.
c) The ratio shows which assets are more effective in generating revenue for the
business.
d) The ratio may be used to indicate possible impairments in the assets of the
business.
e) The ratio indicates the effectiveness of the assets in producing pro�ts for the
business.
a. Options (a), (b) and (d)
b. Options (b), (c) and (e)
c. Options (a) and (d)
d. Options (b) and (c)
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