MAE203P EXAMINATION 49432087
, MAE203P EXAMINATION 49432087
Question 1
1.1.1 False, liquidity refers to how quickly a business can convert its assets into cash.
1.1.2 False, the formula can be manipulated into
1.1.3 False, the Rule of 72 is a quick way to obtain an estimate to how many years it
takes interest to double itself by using compound interest.
1.1.4 True, non-current assets are subject to depreciation.
1.1.5 False, the bottom half of a statement of financial position shows the capital and
liabilities, not how money is utilised.
1.1.6 False, it can be manipulated into
Stock = Current Assets – Quick Ratio x Current Liability
1.1.7 False, a net margin of 5% means they collect 5c on every dollar the customer
spends.
, MAE203P EXAMINATION 49432087
Question 1
1.1.1 False, liquidity refers to how quickly a business can convert its assets into cash.
1.1.2 False, the formula can be manipulated into
1.1.3 False, the Rule of 72 is a quick way to obtain an estimate to how many years it
takes interest to double itself by using compound interest.
1.1.4 True, non-current assets are subject to depreciation.
1.1.5 False, the bottom half of a statement of financial position shows the capital and
liabilities, not how money is utilised.
1.1.6 False, it can be manipulated into
Stock = Current Assets – Quick Ratio x Current Liability
1.1.7 False, a net margin of 5% means they collect 5c on every dollar the customer
spends.
