1. Oni Pty Ltd Limited has prepared its June half-year cash budget.  The cash budget shows a healthy cash balance at the end of the period, however negative cash balances are forecast throughout February and March. Which of the following strategies would be appropriate to address this short-term cash problem? A.Any of these strategies would be appropriate to address this short-term cash problem. B.Arrange an overdraft facility with its bank. C.Sell its goods on a cash-only basis. D.Raise additional capital via a share issue. E.Realise some non-current assets

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

1. Oni Pty Ltd Limited has prepared its June half-year cash budget.  The cash budget shows a healthy cash balance at the end of the period, however negative cash balances are forecast throughout February and March.

Which of the following strategies would be appropriate to address this short-term cash problem?

A.Any of these strategies would be appropriate to address this short-term cash problem.

B.Arrange an overdraft facility with its bank.

C.Sell its goods on a cash-only basis.

D.Raise additional capital via a share issue.

E.Realise some non-current assets.

 

2.Oni Pty Ltd sells it goods at a 50% mark-up.  A review of the variance report reveals the following:

A favourable variance in Sales revenue of 8%

An unfavourable variance in Cost of sales of 5%

Which of the following statements is correct?

 

A.The actual mark-up % was greater than forecast and management will be pleased with the cost of sales variance.

B.The actual mark-up % was greater than forecast and management will be disappointed with the cost of sales variance.

C.The actual mark-up % was less than forecast and management will be pleased with the cost of sales variance.

D.None of these statements are correct.

E.The actual mark-up % was less than forecast and management will be disappointed with the cost of sales variance.

 

3.Investment in which of the following confirms that software design firms have high operating leverage?

A. Computer equipment

B.Salaries

C.Investment in all of these confirms that software design firms have high operating leverage.

D.Intellectual property

E.Online security

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education