Question 1 of 10

2 Points

Only cash is involved when compiling a statement of cash flow.

A. True

B. False

Question 2 of 10

2 Points

A change in the current liabilities category in the statement of financial position, is reported in the investments activities in the statement of cash flow.

A. True

B. False

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Question 3 of 10

2 Points

The financing activities in the statement of cash flow reports on a change in equity only.

A. True

B. False

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Question 4 of 10

2 Points

It is necessary to disclose details of amounts that are aggregated under one item in the statement of cash flow, in a note.

A. True

B. False

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Question 5 of 10

1 Points

Current ratio = Current assets : Current liabilities

A. True

B. False

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Question 6 of 10

1 Points

The general norm for the current ratio is 1:2.

A. True

B. False

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Question 7 of 10

1 Points

When considering the creditors payment period, it is safe to say that an acceptable period depends on the type of entity.

A. True

B. False

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Question 8 of 10

1 Points

The debtors collection period can be measured in days, weeks or months.

A. True

B. False

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Question 9 of 10

1 Points

Net profit % = (Net profit after interest and tax) (Sales - sales returns)

A. True

B. False

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Question 10 of 10

2 Points

Considering comparable ratios: It is generally accepted that by comparing two periods, the improvement or deterioration in the ratios can be determined which in turn will assist management to identify problems and correct it timeously.

A. True

B. False