FIN3702 Exam
Pack
Together We Pass
Exam Pack 2021
Written by The Together We Pass Team
www.togetherwepass.co.za
,Welcome
Welcome to your FIN3702 2021 Exam Pack, which was made and created by a team of individuals
dedicated to provide students with the best possible document in order to guide students on
what to possibly expect in their exams.
Complete with past examination papers and memorandums, this Exam Pack will guide you in the
right direction, leaving you well-prepared for your upcoming FIN3702 exam.
- The Together We Pass Team
© 2021 Together We Pass. All rights reserved.
2
,Table of Contents
Welcome ............................................................................................................................................... 2
FIN3702 June/July 2021 Exam Paper ............................................................................................ 4
FIN3702 June/July 2021 Exam Memo ......................................................................................... 12
FIN3702 January/February 2021 Exam Paper ........................................................................... 14
FIN3702 January/February 2021 Exam Memo ........................................................................... 22
FIN3702 October/November 2020 Exam Paper ......................................................................... 24
FIN3702 October/November 2020 Exam Paper ......................................................................... 32
FIN3702 May/June 2020 Exam Paper ......................................................................................... 35
FIN3702 May/June 2020 Exam Memo ........................................................................................ 43
FIN3702 October/November 2019 Exam Paper ......................................................................... 45
FIN3702 October/November 2019 Exam Memo ........................................................................ 53
FIN3702 May/June 2019 Exam Paper ......................................................................................... 55
FIN3702 May/June 2019 Exam Memo ........................................................................................ 63
© 2021 Together We Pass. All rights reserved.
3
, FIN3702 Exam Pack WORKING
CAPITAL MANAGEMENT
FIN3702 June/July 2021 Exam Paper
SECTION A: MULTIPLE-CHOICE QUESTIONS
1. A lockbox plan is most beneficial to firms that have ...
1. widely dispersed manufacturing facilities.
2. customers who operate in many different parts of the country.
3. a large marketable securities portfolio to protect.
4. suppliers who operate in many different parts of the country.
2. Which one of the following statements is most consistent with efficient inventory management?
The firm has a ...
1. relatively low accounts receivables period.
2. relatively high current ratio.
3. below average inventory turnover.
4. low incidence of production schedule interruptions.
3. Which of the following statements is CORRECT?
1. 1. A conservative financing policy is one where the firm finances part of its fixed assets with
short-term capital and all its net working capital with short- term funds
2. 2. If a company receives credit under terms of 2/10 net 30, this implies that the company has
10 days of free trade credit
3. 3. Accruals are an expensive but commonly used way to finance working capital
4. 4. If a firm has a relatively aggressive current asset financing policy compared to other firms in
its industry, then its current ratio will probably be relatively high
4. Which of the following is NOT commonly regarded as being a credit policy variable?
1. credit period
2. cash discounts
3. credit standards
4. accounts payable period
5. A bank lends a firm R750 000 for one year at 9% on a discount basis and requires compensating
balances of 10% of the face of the loan. The effective annual rate associated with this loan is ...
1. 9.75%.
2. 11.11%.
© 2021 Together We Pass. All rights reserved.
4
Pack
Together We Pass
Exam Pack 2021
Written by The Together We Pass Team
www.togetherwepass.co.za
,Welcome
Welcome to your FIN3702 2021 Exam Pack, which was made and created by a team of individuals
dedicated to provide students with the best possible document in order to guide students on
what to possibly expect in their exams.
Complete with past examination papers and memorandums, this Exam Pack will guide you in the
right direction, leaving you well-prepared for your upcoming FIN3702 exam.
- The Together We Pass Team
© 2021 Together We Pass. All rights reserved.
2
,Table of Contents
Welcome ............................................................................................................................................... 2
FIN3702 June/July 2021 Exam Paper ............................................................................................ 4
FIN3702 June/July 2021 Exam Memo ......................................................................................... 12
FIN3702 January/February 2021 Exam Paper ........................................................................... 14
FIN3702 January/February 2021 Exam Memo ........................................................................... 22
FIN3702 October/November 2020 Exam Paper ......................................................................... 24
FIN3702 October/November 2020 Exam Paper ......................................................................... 32
FIN3702 May/June 2020 Exam Paper ......................................................................................... 35
FIN3702 May/June 2020 Exam Memo ........................................................................................ 43
FIN3702 October/November 2019 Exam Paper ......................................................................... 45
FIN3702 October/November 2019 Exam Memo ........................................................................ 53
FIN3702 May/June 2019 Exam Paper ......................................................................................... 55
FIN3702 May/June 2019 Exam Memo ........................................................................................ 63
© 2021 Together We Pass. All rights reserved.
3
, FIN3702 Exam Pack WORKING
CAPITAL MANAGEMENT
FIN3702 June/July 2021 Exam Paper
SECTION A: MULTIPLE-CHOICE QUESTIONS
1. A lockbox plan is most beneficial to firms that have ...
1. widely dispersed manufacturing facilities.
2. customers who operate in many different parts of the country.
3. a large marketable securities portfolio to protect.
4. suppliers who operate in many different parts of the country.
2. Which one of the following statements is most consistent with efficient inventory management?
The firm has a ...
1. relatively low accounts receivables period.
2. relatively high current ratio.
3. below average inventory turnover.
4. low incidence of production schedule interruptions.
3. Which of the following statements is CORRECT?
1. 1. A conservative financing policy is one where the firm finances part of its fixed assets with
short-term capital and all its net working capital with short- term funds
2. 2. If a company receives credit under terms of 2/10 net 30, this implies that the company has
10 days of free trade credit
3. 3. Accruals are an expensive but commonly used way to finance working capital
4. 4. If a firm has a relatively aggressive current asset financing policy compared to other firms in
its industry, then its current ratio will probably be relatively high
4. Which of the following is NOT commonly regarded as being a credit policy variable?
1. credit period
2. cash discounts
3. credit standards
4. accounts payable period
5. A bank lends a firm R750 000 for one year at 9% on a discount basis and requires compensating
balances of 10% of the face of the loan. The effective annual rate associated with this loan is ...
1. 9.75%.
2. 11.11%.
© 2021 Together We Pass. All rights reserved.
4
