Current assets are those that can reasonably be expected to be converted into cash within:

A) Less than five years or one operating cycle if longer

B) Less than two years or one operating cycle if longer

C) Less than one year or one operating cycle if longer

D) One day or one operating cycle if longer

You have been provided with the following information on Company X:

- Revenue = CU1,000

- Cost of sales = CU500

- Selling, general and administration expenses = CU220

- Amortization expense = CU80

- Depreciation expense = CU70

What is the value of EBITDA?

A) CU130

B) CU280

C) CU350

D) CU430

You have been informed by a client that they currently operate a negative cash conversion cycle. Is this generally favorable or unfavorable?

A) Favorable

B) Unfavorable

C) It is neither favorable nor unfavorable

D) It is not possible to determine

How will the profits of a company that uses accelerated depreciation compare to the use of straight line depreciation in the early years of the asset's life?

A) Profits will be lower

B) Profits will be higher

C) Profits will be the same

D) It is not possible to determine how the profits may be related

Prior to the revision of lessee accounting there were two lease classifications; namely operating and finance leases. Which of these are associated with off balance sheet finance?

A) Operating leases only

B) Finance leases only

C) Both operating and finance leases

D) Neither were considered off-balance sheet items