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Business English Exercises
 

Financial Assets

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Home > Teaching Business English > Business English Lessons, Advanced Level # 122
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 All tests  TOP 100  Forum  Dictionaries What are the objectives of cash management?
financial assets answer 1
In financial accounting, financial assets are cash and other assets that convert directly into estimated amounts of cash.

Correct answer: (b) estimated

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 english vocabulary words: english adjective toeic verbal word list Which of the following is an example of a measure of leverage?
financial assets answer 2
In the balance sheet, financial assets are listed at the current value: for cash, this means the face amount.

Correct answer: (b) face

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financial assets answer 3
Marketable securities are listed at current market value, while receivables are listed at net realizable value.

Correct answer: (c) realizable

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financial assets answer 4
The objectives of cash management are accurate accounting for cash transactions, the prevention of losses through theft, and maintaining adequate cash balances.

Correct answer: (d) theft

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financial assets answer 5
One major step in achieving internal control over cash transactions is separating cash handling from the accounting function.

Correct answer: (c) internal

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financial assets answer 6
The cash balance shown on the month-end bank statement will usually differ from the amount of cash shown in the depositor's ledger; this is a result of such items as outstanding checks and deposits in transit.

Correct answer: (b) outstanding

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financial assets answer 7
The bank reconciliation adjusts the cash balance per the books and the cash balance per the bank statement for any unrecorded items and thus produces the correct amount of cash to be included in the balance sheet at the end of the month.

Correct answer: (c) reconciliation

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financial assets answer 8
Under the allowance method, the portion of each period's credit sales expected to prove uncollectible is written off by debiting Allowance for Doubtful Accounts and crediting Accounts Receivable.

Correct answer: (b) off

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financial assets answer 9
The most liquid financial asset is cash, followed by cash equivalents, marketable securities, and receivables.

Correct answer: (c) liquid

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financial assets answer 10
Interest is a contractual amount that accumulates day by day; the amount of interest accruing over a time period may be computed by the formula Principal x Rate x Time.

Correct answer: (a) accruing

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Business English Practice Exercises Business English Tests — several topics are covered: office matters, job applications, computer English, money expressions, business law, operations management, retail marketing, e-commerce, accounting terms, contracts and agreements, commercial correspondence, etc.
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