Multiple Choice Questions

1) If a machine is purchased for R600 000 and SARS allows it to be written off over 4 years,

what is the book value of the machine after two years?

a) R150 000

b) R300 000

c) R450 000

d) R600 000

2) The telephone budget for 2020 is expected to decrease by 10% from 2019. If 2019 budget was

R250 000, the 2020 budget will be:

a)R240 000

b)R 225 000

c) R275 000

d) R250 000

3) Given the following:

State probability expected return

1 0.30 10%

2 0.70 12%

What is the expected return of this share?

a) 12%

b) 11.4%

c) 11%

d) 22%

4) Ben bought masks for R12 and sold them at R30 each, during the Covid crisis. What was the percentage

mark-upon cost price?

a) 60%

b) 150%

c) 40%

d) 250%

5) A firm with sales of R2,000,000, net profits after taxes of R50,000, total assets of R3,500,000, and total

liabilities of R1 500,000 has a return on equity of

a) 25%.

b) 2.5%

c) 1%

d) 10 %

6) Tahlia invested R230 500 now. If interest is calculated at 11% per annum, what would she have after

4 years?

a) R331 920

b) R349 915

c) R274 500

d) R255 855

7) The selling price, excluding VAT (15%) on a total selling price of R800 shirt is

a) R785

b) R695.65

c) R680

d) R800

8) Belinda and Sally share profits in the ratio 1:4. If the total profit is R100 000, how much

does each receive, respectively?

a) R33 333 and R66 667

b) R20 000 and R80 000

c) R80 000 and R20 000

d) R25 000 and R75 000

9) For the Tahlias Delights the average age of accounts receivable is 46 days, the average age of accounts

payable is 58 days, and the average age of inventory is 34 days. Assuming a 365-day year, what is the length

of the firms cash conversion cycle?

a) 138 days

b) 22 days

c) 227 days

d) 104 days

10)You plan to buy a car in 3 years, which is expected to cost about R243 000 then. If ABIL offers you a

compound interest rate of 12% per annum, what lump sum should you invest now, in order to reach

your target amount.

a) R213 000

b) R172 963

c) R155 520

d) R203 000