Quizalize logo
placeholder image to represent content

Lecture 10 Quiz

Quiz by Chi Truong

Feel free to use or edit a copy

includes Teacher and Student dashboards

Measure skills
from any curriculum

Tag the questions with any skills you have. Your dashboard will track each student's mastery of each skill.

With a free account, teachers can
  • edit the questions
  • save a copy for later
  • start a class game
  • automatically assign follow-up activities based on students’ scores
  • assign as homework
  • share a link with colleagues
  • print as a bubble sheet

Our brand new solo games combine with your quiz, on the same screen

Correct quiz answers unlock more play!

New Quizalize solo game modes
5 questions
Show answers
  • Q1
    Which of the following statements is INCORRECT?
    Working capital is the difference between current asset - current liability. Management of working capital involves the management of cash, the management of inventory and the management of account payable and account receivable.
    The opportunity cost of holding cash is the expected return that can be earned by investing the cash in stock or bonds. For cash demand that is anticipated in a near future, the opportunity of holding cash can be reduced by investing cash in liquidity assets such as government bonds. Holding excessive cash also leads to agency problems such as perks.
    The best cash management practice is to hold as much cash as possible to minimize liquidity and default risk.
    A shortage of cash can lead to delayed payment of account payables and results in a loss of cash discounts. It can also lead to a delayed payment of debt obligations, which can result in a default of the company.
    90s
  • Q2
    Which of the following statements is INCORRECT?
    Offering credit is a form of reducing price to attract more customers, which helps to improve sales. By being able to defer payments, customers can reduce interest expenses on their funding.
    Invoice date is the date on which the mechandise is paid.
    Trade credit is the credit offerred to companies while consumer credit is the credit offerred to consumers.
    Offering credit delays the cash receipt and forgoes interest earnings. It also incurs a risk that customers do not pay.
    90s
  • Q3
    Which of the following statements is INCORRECT?
    “1/20, net 40” means that the credit period is 40 days, the discount period is 20 days and the cash discount is 1%. If a customer pays on the 21rst day since the invoice date, he will not receive the discount, while a customer who pays on the 20th day will receive a discount of 1%.
    Credit period is the period between the invoide date and the payment due date
    One mechanism to alleviate the risk of bad debt when selling to a low credit rating company is to ask that company to send a promissory note.
    Cash discount period is the period during which cash discount is available
    90s
  • Q4
    Which of the following statements is INCORRECT?
    Costs of holding inventories includes the cost of not being able to use the capital elsewhere, the lost of inventory values due to deterioration and obsolescence, and the cost of insuring the inventories from being damaged or stolen.
    ABC approach for inventory management involves classifying inventories into expensive inventory that requires close monitoring and inexpensive inventory that can be ordered and stored in large quantities.
    Economic order quantity model helps to determine the optimal inventory level that maximizes the sum of carrying cost and stocking cost.
    Costs of inventory shortage include the cost of lost sales and the cost of loosing customers.
    90s
  • Q5
    Which of the following statements is INCORRECT?
    Inventory is assumed to be deleted at a constant rate and the average inventory is the average of the reordered amount and zero.
    In an EOQ model, the optimal amount to be reordered is calculated taking into account the cost of inventory shortage.
    EOQ model determines the amount of inventory to be reordered.
    EOQ model assumes that the company reorders when inventory reaches zero.
    90s

Teachers give this quiz to your class