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Educating the world for a better change
,8/16/25, 8:09 AM Assessment 1
FIN3702-25-S2 Welcome Message Assessment 1
QUIZ
Question 1
Not yet answered
Marked out of 1.00
A firm's operating cash flow (OCF) is defined as …
1. gross profit minus depreciation.
2. EBIT plus depreciation.
3. gross profit minus operating expenses.
4. EBIT times one minus the tax rate plus depreciation.
Clear my choice
Question 2
Not yet answered
Marked out of 1.00
Which one of the following statements is correct?
1. The lockbox system is an example of concentration banking
2. The lockbox system does not affect the collections' float
3. There are no actions a firm can take to improve its synchronisation of cash flows.
4. If a firm increases its disbursement float, its net float will also increase, other factors held constant
5. For a firm that has many divisions or plants operating over a wide geographical area, payables centralisation offers
little benefit
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=28810899&cmid=1165683 1/11
,8/16/25, 8:09 AM Assessment 1
Question 3
Not yet answered
Marked out of 1.00
Given the financial manager's preference for faster receipt of cash flows …
1. a longer depreciable life is preferred to a shorter one.
2. a shorter depreciable life is preferred to a longer one.
3. the manager is not concerned with depreciable lives, because depreciation is a non-cash expense.
4. the manager is not concerned with depreciable lives, because once purchased, depreciation is considered a sunk
cost.
Clear my choice
Question 4
Not yet answered
Marked out of 1.00
Paile Furniture Suppliers (PFS Ltd) maintains an average inventory of 2000 desks to supply to schools. The carrying cost per
desk is estimated at R7.25. The company places an order of 4000 desks on the first of each quarter and the order cost is
R80. What will the company’s carrying cost be if the firm uses the EOQ method of inventory?
1. R1 215
2. R2 500
3. R3 750
4. R8 215
Clear my choice
Question 5
Not yet answered
Marked out of 1.00
The cash flows from the operating activities section of the statement of cash flows consider…
1. dividends paid.
2. interest expense.
3. stock repurchases.
4. cost of raw materials.
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=28810899&cmid=1165683 2/11
, 8/16/25, 8:09 AM Assessment 1
Question 6
Not yet answered
Marked out of 1.00
Bank Ltd has offered Elle’s Pizza Parlour the following in response to a R100,000 one-year loan application which was made
to the bank. The stated rate was 10.4% and a 20% compensating balance. What will the effective annual rate be?
1. 7.00%
2. 8.40%
3. 8.75%
4. 13.00%
Clear my choice
Question 7
Not yet answered
Marked out of 1.00
The conversion of current assets from inventory to receivables to cash provides the … of cash used to pay the current
liabilities, which represents a … cash.
1. source; use
2. use; source
3. outflow; inflow
4. inflow; outflow
Clear my choice
Question 8
Not yet answered
Marked out of 1.00
Van der Fick Scott purchased inventory to the value of R100,000. The terms of sale were 4/15 net 45. What is the effective
annual interest rate if he paid the full amount in 45 days? (assume a 365-day year).
1. 38.22%
2. 37.60%
3. 44.85%
4. 64.32%
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=28810899&cmid=1165683 3/11
ademic In
Ac sti
te
tu
Eli
te
he
de
W
re a
G ra eM
d u a te s Ar
Educating the world for a better change
,8/16/25, 8:09 AM Assessment 1
FIN3702-25-S2 Welcome Message Assessment 1
QUIZ
Question 1
Not yet answered
Marked out of 1.00
A firm's operating cash flow (OCF) is defined as …
1. gross profit minus depreciation.
2. EBIT plus depreciation.
3. gross profit minus operating expenses.
4. EBIT times one minus the tax rate plus depreciation.
Clear my choice
Question 2
Not yet answered
Marked out of 1.00
Which one of the following statements is correct?
1. The lockbox system is an example of concentration banking
2. The lockbox system does not affect the collections' float
3. There are no actions a firm can take to improve its synchronisation of cash flows.
4. If a firm increases its disbursement float, its net float will also increase, other factors held constant
5. For a firm that has many divisions or plants operating over a wide geographical area, payables centralisation offers
little benefit
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=28810899&cmid=1165683 1/11
,8/16/25, 8:09 AM Assessment 1
Question 3
Not yet answered
Marked out of 1.00
Given the financial manager's preference for faster receipt of cash flows …
1. a longer depreciable life is preferred to a shorter one.
2. a shorter depreciable life is preferred to a longer one.
3. the manager is not concerned with depreciable lives, because depreciation is a non-cash expense.
4. the manager is not concerned with depreciable lives, because once purchased, depreciation is considered a sunk
cost.
Clear my choice
Question 4
Not yet answered
Marked out of 1.00
Paile Furniture Suppliers (PFS Ltd) maintains an average inventory of 2000 desks to supply to schools. The carrying cost per
desk is estimated at R7.25. The company places an order of 4000 desks on the first of each quarter and the order cost is
R80. What will the company’s carrying cost be if the firm uses the EOQ method of inventory?
1. R1 215
2. R2 500
3. R3 750
4. R8 215
Clear my choice
Question 5
Not yet answered
Marked out of 1.00
The cash flows from the operating activities section of the statement of cash flows consider…
1. dividends paid.
2. interest expense.
3. stock repurchases.
4. cost of raw materials.
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=28810899&cmid=1165683 2/11
, 8/16/25, 8:09 AM Assessment 1
Question 6
Not yet answered
Marked out of 1.00
Bank Ltd has offered Elle’s Pizza Parlour the following in response to a R100,000 one-year loan application which was made
to the bank. The stated rate was 10.4% and a 20% compensating balance. What will the effective annual rate be?
1. 7.00%
2. 8.40%
3. 8.75%
4. 13.00%
Clear my choice
Question 7
Not yet answered
Marked out of 1.00
The conversion of current assets from inventory to receivables to cash provides the … of cash used to pay the current
liabilities, which represents a … cash.
1. source; use
2. use; source
3. outflow; inflow
4. inflow; outflow
Clear my choice
Question 8
Not yet answered
Marked out of 1.00
Van der Fick Scott purchased inventory to the value of R100,000. The terms of sale were 4/15 net 45. What is the effective
annual interest rate if he paid the full amount in 45 days? (assume a 365-day year).
1. 38.22%
2. 37.60%
3. 44.85%
4. 64.32%
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=28810899&cmid=1165683 3/11
