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Performance Task Week 5

This document provides details on a performance task for business finance. It includes two tasks - the first asks to identify terms being described, and the second asks multiple choice questions about cash budgeting, cash conversion cycles, financial planning processes, and working capital management. Key terms identified include cash budget, cash conversion cycle, character, and transaction motive. Multiple choice questions cover topics like the two main management functions, components of a cash conversion cycle, statements about working capital management, collection techniques for accounts receivable, and what represents assets expected to be collected and converted to cash.

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826 views2 pages

Performance Task Week 5

This document provides details on a performance task for business finance. It includes two tasks - the first asks to identify terms being described, and the second asks multiple choice questions about cash budgeting, cash conversion cycles, financial planning processes, and working capital management. Key terms identified include cash budget, cash conversion cycle, character, and transaction motive. Multiple choice questions cover topics like the two main management functions, components of a cash conversion cycle, statements about working capital management, collection techniques for accounts receivable, and what represents assets expected to be collected and converted to cash.

Uploaded by

nats pamplona
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PERFORMANCE TASK WEEK 5

BUSINESS FINANCE

Task 1.

Directions: Identify the term is being describe by each statement

Cash Budget 1. Shows the planned inflows and outflows of cash in the entity for a given period.

Cash Conversion Cycle 2. It refers to company’s investment in short term asset such as cash, inventory,
short-term marketable securities, and account receivable

Character 3. The applicant’s record of meeting its past obligations has judged.

Cash Conversion Cycle 4. Firms operating cycle begin from the time goods for sale has

manufactured to the eventual collection of cash from the sale of these goods.

Transaction Motive 5. Cash needed to facilitate the normal transactions of the business,

that is, to carry out its purchases and sales activities.

Task 2.

Direction: Read each question carefully, choose the letter with the correct answer and write

your answer on the space before each number.

__D__1. What are the two management functions reinforce each other for the success of an

organization.

A. Planning and Controlling C. Staffing and Planning

B. Controlling and Directing D. Organizing and Planning

__C___2. Which of the following is not part of financial planning process?

A. Identify goal related task C. Identify resources

B. Set goals/Objectives D. Establish strong Management

__B. BUDGET__3 A plan expresses in quantitative terms, which emphasizes the resource use and

resource allocation of an entity over a specified period of time?

A. Sales C. Sales Budget B. Budget D. Cash Budget

___A__4. Which of the process to closely monitoring of in and out of cash in the business?

A. Cash flow statement C. Statement of financial Position

B. Income statement D. Budgeting


__A__5. It is a tool of the company to set an overall goal of what the company’s performance

and position will be for and as of the end of the year.

A. Forecasting C. Budgeting

B. Inventory D. Projected Financial Statement

___A__ 6. Components of a firm’s cash conversion cycle include:

A. average collection period, average age of inventory

B. average payment, average collection period

C. average age of inventory and average payment period

D. average age of inventory, average collection period and average payment

__D__7. Which of the following statements is true regarding working capital management?

A. There is a risk and profitability tradeoff in working capital management B. A firm’s

working capital is not essential in managing its operations

C. Cash, inventory and long-term receivables are common working capital components

D. All statements are true

__D__8. Which of the following is not a common collection technique for accounts receivables?

A. Sending letter of demands C. sending legal notices

B. making phone calls D. writing off customer’s accounts

__A___9. It is a technique used in granting credit to customers.

A. Credit score C. Credit limit

B. Credit standards D. All of the above.

___A__10. It represents assets of the entity that expected to be collected and thus, converted to

cash.

A. Inventory Management C. Accounts Receivable Management

B. Marketable Securities Management D. Cash Management

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