FINANCE #1

Question 1

Describe the sources of finance that are available to a large organisation

Answer 1

Watch out if question refers to long or short-term sources

Question 2

Explain the reasons (the benefits) of preparing a CASH BUDGET

Answer 2

Question 3

Describe the IMPACT to an organisation of having POOR cash flow

Answer 3

Question 4

Describe the reasons why a competitor may be interested in the financial information of an organisation

Answer 4

Question 5

Describe the purpose of preparing a STATEMENT OF FINANCIAL POSITION

Answer 5

Question 6

Describe how the STATEMENT OF FINANCIAL POSITION may be used by key stakeholders

Answer 6

Question 7

Describe four pieces of information contained in an INCOME STATEMENT

Answer 7

Question 8

Describe the TREND in profitability using examples

Answer 8

Question 9

Describe accounting RATIOS that managers could use

Answer 9

Question 10

Describe steps that could be taken to IMPROVE profitability and liquidity ratios

Answer 10