Facebook: @ www.facebook.com/ S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 1 ĐỀ THI ANH VĂN MOODY VÀO ĐỀ SỐ 1 Đáp án + Dịch: Mr Nguyễn Lê Giang - Mail: legiang127@gmail.com (Xem Đáp án từ Trang 4) 1. Shareholders in the company (corporation) form of business are personally responsible for none of the liabilities of the company (corporation) unless they have provided a personal guarantee. A. False B. True 2. The financial accounts of a service business usually do NOT include which of the following accounts? A. Fixed assets B. Prepaid expenses C. Accounts payable (trade creditors) D. Cost of goods sold E. Notes payable 3. A major difference between the company (corporation) and partnership forms of business organisation is that none of the shareholders in a company (corporation) are personally responsible for business liabilities, as general partners are in a partnership. A. False B. True Facebook: @ www.facebook.com/ S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 2 4. Credit enhancements (security, guarantees, etc.) normally do not vary based on a borrower's legal structure. A. False B. True 5. In a period of declining sales, profits, and cash flow, a service provider, such as a software developer, would likely have the greatest borrowing need to finance which of the following? A. Investments B. New fixed assets until they are used up in producing products C. Inventory (stock) until it is converted to sales and cash D. General operations until the business returns to a more positive financial position E. A change in company ownership 6. The financial accounts of a sole trader present withdrawals taken during the year in the operating expenses of the business. A. False B. True 7. If assets are defined as everything that supports the production process or results from it, then the shorter the asset conversion cycle, the greater the level of financing a business normally requires. A. False B. True 8. Which of the following is typically NOT considered an acceptable borrowing cause? A. Finance the range of assets required to support rapid growth B. Finance survival until the company can be turned around C. Finance inventory (stock) until it is converted to sales and cash Facebook: @ www.facebook.com/ S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 3 D. Pay down subordinated debt 9. The short-term financing gap can be expressed mathematically as ____________ . A. trade debtors in days plus inventory (stock) in days less trade creditors in days B. trade debtors in days plus trade creditors in days less inventory (stock) in days C. inventory (stock) in days less trade creditors in days D. trade creditors in days plus inventory (stock) in days less trade debtors in days 10. In a period of rapid economic growth, a manufacturer would likely have the greatest borrowing need to finance which of the following? (select all that apply) A. Trade debtors until they are collected in cash B. Inventory, stock, until it is converted to sales and cash C. A change in company ownership D. Finance fixed assets until they are used up in producing product E. Survival until the company can be turned around 11. Other things being equal, the ____________ . A. shorter a firm's trading cycle, the greater the amount of suppliers' credit or bank financing it will need. B. longer a firm's trading cycle, the smaller the amount of suppliers' credit or bank financing it will need. C. longer a firm's trading cycle, the greater the amount of suppliers' credit or bank financing it will need. D. shorter a firm's trading cycle, the greater the amount of term debt it will need. 12. Long-term debt repayment depends primarily upon _____________ .