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ASSIGNMENif i
2 SEMESliER
L Ir
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l111.L QUESTll!INS
I I I
FltlLLll ANSWERED +
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DUE: APRIL 2026
DISCLAIMER:
THI' DOCUMEN IS FDR REFERENCE AND GUIDf'N E PURP SES
ONLY. I DD NOT TAKE RESPDNSIBIUITY !FDR AN~ PLAG ARl~M. ~MISUSE. DR
ACADEMIC MIS DNDUCT RESULTING FROM THSIR USE. IT IS YDURi j ~
===
RESPONSIBILITY TO ENSU~E ORIGINALITY AN~ CDMPL!IAN E WITH
- RELEVANT GUlr LINES DR t TAND, RDl . r l r
1
, PLEASE USE THIS DOCUMENT AS A GUIDE ONLY
QUESTION 1
The treasurer’s role includes cash and liquidity management (KPA), and the company’s cash and
liquidity risk management policy explicitly mentions using forecasting tools to create a cash
surplus/requirement ladder. Preparing a cash flow statement is a standard tool for determining cash
flow surpluses and deficits.
Correct option: a. True/agree
QUESTION 2
Liquidity refers to the ability to meet short-term obligations. The ability to replace a long-term asset
(injection moulding machine) using a long-term loan (R3,000,000 from Standard Bank) relates to
solvency or capital investment, not liquidity.
Correct option: b. False/disagree
QUESTION 3
Depreciation is a non-cash expense. It reduces accounting profit but does not involve an actual cash
outflow. Therefore, it should not be treated as a cash outflow in the cash flow statement.
Correct option: b. False/disagree
RIN~Jµ~ +
ASSIGNMENif i
2 SEMESliER
L Ir
1
l111.L QUESTll!INS
I I I
FltlLLll ANSWERED +
t t t
DUE: APRIL 2026
DISCLAIMER:
THI' DOCUMEN IS FDR REFERENCE AND GUIDf'N E PURP SES
ONLY. I DD NOT TAKE RESPDNSIBIUITY !FDR AN~ PLAG ARl~M. ~MISUSE. DR
ACADEMIC MIS DNDUCT RESULTING FROM THSIR USE. IT IS YDURi j ~
===
RESPONSIBILITY TO ENSU~E ORIGINALITY AN~ CDMPL!IAN E WITH
- RELEVANT GUlr LINES DR t TAND, RDl . r l r
1
, PLEASE USE THIS DOCUMENT AS A GUIDE ONLY
QUESTION 1
The treasurer’s role includes cash and liquidity management (KPA), and the company’s cash and
liquidity risk management policy explicitly mentions using forecasting tools to create a cash
surplus/requirement ladder. Preparing a cash flow statement is a standard tool for determining cash
flow surpluses and deficits.
Correct option: a. True/agree
QUESTION 2
Liquidity refers to the ability to meet short-term obligations. The ability to replace a long-term asset
(injection moulding machine) using a long-term loan (R3,000,000 from Standard Bank) relates to
solvency or capital investment, not liquidity.
Correct option: b. False/disagree
QUESTION 3
Depreciation is a non-cash expense. It reduces accounting profit but does not involve an actual cash
outflow. Therefore, it should not be treated as a cash outflow in the cash flow statement.
Correct option: b. False/disagree
