Reference no: EM132852119

1. The purpose of the finance function in a business includes all of the following EXCEPT:

a) to entertain investment proposals from all areas of the business

b) to appraise projects on the basis of their ability generate profit

c) to appraise projects on the basis of their ability to increase the owners' wealth

d) to appraise projects on the basis of their ability to generate market share

2. Under which condition is it possible for owners' equity to be negative?

a) Owners' equity will be negative when the value of the assets is greater than the value of the business' liabilities.

b) Because of loss, damage or depreciation, the money that a business could get by selling its assets is less than the total amount of money that it owes.

c) Owners' equity will be negative when the value of the assets is greater than the value of the business' loans, debts and other obligations

d) It is not possible for owners' equity to be negative

3.Which term is used to identify the debts and financial obligations that need to be paid within the next year?

a) annual liabilities

b) short term liabilities

c) current debts

d) current liabilities

e) current portion

4.Which term is used to identify the assets that can be or will be converted into cash within the next year?

a) quick assets

b) quick ratio

c) high-liquidity assets

d) short term assets

e) current assets