AMPD 4093 Final exam chapter
10,11,12 questions with complete
solutions 2025/2026
Supply chain financing supported by the financial performance of a company
- Financial statements - correct answer ✔✔- Balance sheet
- Income statement
- Cash flow statement
balance sheet - correct answer ✔✔is an accounting or a snapshot of a company's assets,
liability, and equity for a period of time.
Assets - correct answer ✔✔- the items that a company owns, such as cash, accounts receivable,
inventory, equipment, and buildings
Short-term assets - correct answer ✔✔- cash or cash-equivalents or items that can be converted
to cash in less than a year, such as inventory and accounts receivable.
Long-term assets (fixed assets) - correct answer ✔✔- items that take longer than a year to
convert to cash, such as equipment and buildings.
Liabilities - correct answer ✔✔- are defined as a company's legal financial debts or obligations
that arise during the course of business operations. Also classified as long-term and short-term
liabilities.
Short-term liabilities - correct answer ✔✔- payables which often include payments owed to
vendors for raw materials and/or labor.
,Long-term liabilities - correct answer ✔✔- items such as mortgages for buildings or long-term
leases for production facilities.
- When a company's assets exceed its liabilities, there is equity in the business.
Income Statement - correct answer ✔✔Also known as the profit and loss statement or the
statement of revenue and expense, the income statement primarily focuses on the company's
revenues and expenses during a particular period.
- Net Income = (Total Revenue + Gains) - (Total Expenses + Losses)
Cashflow Statement - correct answer ✔✔- A Cash Flow Statement (also called the Statement of
Cash Flows) shows how much cash is generated and used during a given time period.
- The main categories found in a cash flow statement are the (1) operating activities
(2) investing activities, and
(3) financing activities of a company and are organized respectively.
- The total cash provided from or used by each of the three activities is summed to arrive at the
total change in cash for the period, which is then added to the opening cash balance to arrive at
the cash flow statement's bottom line, the closing cash balance.
Working capital - correct answer ✔✔- is the difference between a company's current assets,
such as cash, accounts receivable (customers' unpaid bills) and inventories of raw materials and
finished goods, and its current liabilities, such as accounts payable.
- Working capital is a measure of a company's liquidity, operational efficiency and its short-term
financial health. If a company has substantial working capital, then it should have the potential
to invest and grow. If a company's current assets do not exceed its current liabilities, then it may
have trouble growing or paying back creditors, or even go bankrupt.
Financing - correct answer ✔✔Short-term business financing options are for smaller amounts
while long-term financing options are for larger amounts. Because short-term financing is for
smaller amounts, you pay them back more quickly at a higher interest rate and there's a shorter
approval process.
, Key Supply Chain Financing Terms - correct answer ✔✔- Accounts Payable (AP)
- Accounts Receivable (AR)
- Cost of Goods Sold (COGS)
- Receivable Financing
- Recourse Financing
- Weighted Average Cost of Capital (WACC)
- Working Capital
Accounts Payable (AP) - correct answer ✔✔- Money that a manufacturer owes. A short-term
liability that will come due in less than 12 months, such as wages that a factory might owe to its
workers.
Accounts Receivable (AR) - correct answer ✔✔- Money that is owed to a manufacturer for work
that it has performed, such as the production of goods for a garment contract. ARs are short-
term receivables that come due in less than 12 months. When a designer produces an order, it
obtains a receivable from the retailer.
Cost of Goods Sold (COGS) - correct answer ✔✔- The direct cost attributable to the items sold
by the retailer. COGS only reflects the direct cost of production, such as the raw material and
manufacturing labor. The labor associated with selling, goods, and administration (SGA) is
excluded from COGS.
Receivable Financing - correct answer ✔✔- When a designer obtains funds in advance by
factoring its receivables. The lender
extends funds prior to the receivable being paid on the basis of the quality of the
receivable.
10,11,12 questions with complete
solutions 2025/2026
Supply chain financing supported by the financial performance of a company
- Financial statements - correct answer ✔✔- Balance sheet
- Income statement
- Cash flow statement
balance sheet - correct answer ✔✔is an accounting or a snapshot of a company's assets,
liability, and equity for a period of time.
Assets - correct answer ✔✔- the items that a company owns, such as cash, accounts receivable,
inventory, equipment, and buildings
Short-term assets - correct answer ✔✔- cash or cash-equivalents or items that can be converted
to cash in less than a year, such as inventory and accounts receivable.
Long-term assets (fixed assets) - correct answer ✔✔- items that take longer than a year to
convert to cash, such as equipment and buildings.
Liabilities - correct answer ✔✔- are defined as a company's legal financial debts or obligations
that arise during the course of business operations. Also classified as long-term and short-term
liabilities.
Short-term liabilities - correct answer ✔✔- payables which often include payments owed to
vendors for raw materials and/or labor.
,Long-term liabilities - correct answer ✔✔- items such as mortgages for buildings or long-term
leases for production facilities.
- When a company's assets exceed its liabilities, there is equity in the business.
Income Statement - correct answer ✔✔Also known as the profit and loss statement or the
statement of revenue and expense, the income statement primarily focuses on the company's
revenues and expenses during a particular period.
- Net Income = (Total Revenue + Gains) - (Total Expenses + Losses)
Cashflow Statement - correct answer ✔✔- A Cash Flow Statement (also called the Statement of
Cash Flows) shows how much cash is generated and used during a given time period.
- The main categories found in a cash flow statement are the (1) operating activities
(2) investing activities, and
(3) financing activities of a company and are organized respectively.
- The total cash provided from or used by each of the three activities is summed to arrive at the
total change in cash for the period, which is then added to the opening cash balance to arrive at
the cash flow statement's bottom line, the closing cash balance.
Working capital - correct answer ✔✔- is the difference between a company's current assets,
such as cash, accounts receivable (customers' unpaid bills) and inventories of raw materials and
finished goods, and its current liabilities, such as accounts payable.
- Working capital is a measure of a company's liquidity, operational efficiency and its short-term
financial health. If a company has substantial working capital, then it should have the potential
to invest and grow. If a company's current assets do not exceed its current liabilities, then it may
have trouble growing or paying back creditors, or even go bankrupt.
Financing - correct answer ✔✔Short-term business financing options are for smaller amounts
while long-term financing options are for larger amounts. Because short-term financing is for
smaller amounts, you pay them back more quickly at a higher interest rate and there's a shorter
approval process.
, Key Supply Chain Financing Terms - correct answer ✔✔- Accounts Payable (AP)
- Accounts Receivable (AR)
- Cost of Goods Sold (COGS)
- Receivable Financing
- Recourse Financing
- Weighted Average Cost of Capital (WACC)
- Working Capital
Accounts Payable (AP) - correct answer ✔✔- Money that a manufacturer owes. A short-term
liability that will come due in less than 12 months, such as wages that a factory might owe to its
workers.
Accounts Receivable (AR) - correct answer ✔✔- Money that is owed to a manufacturer for work
that it has performed, such as the production of goods for a garment contract. ARs are short-
term receivables that come due in less than 12 months. When a designer produces an order, it
obtains a receivable from the retailer.
Cost of Goods Sold (COGS) - correct answer ✔✔- The direct cost attributable to the items sold
by the retailer. COGS only reflects the direct cost of production, such as the raw material and
manufacturing labor. The labor associated with selling, goods, and administration (SGA) is
excluded from COGS.
Receivable Financing - correct answer ✔✔- When a designer obtains funds in advance by
factoring its receivables. The lender
extends funds prior to the receivable being paid on the basis of the quality of the
receivable.
