This post provides the mgt201 quiz 2 solution with an answer that helps in test and exam preparation and also it will be beneficial to improve your knowledge and learning skills.

MGT201 Quiz 2 Solved

1) Lead time is defined as:

1. Time before production is assumed
2. Length of time it takes to order inventory
3. Length of time before stock out
4. Length of time between ordering and receiving inventory order

2) Increase in accounts payable will result in:

1. Cash inflow investing activities
2. Cash out flow investing activities
3. Cash inflow from operating activities
4. Cash out flow from operating activities

3) Buying or selling bonds and shares of other companies is recorded in cash flow from:

1. Investing activities
2. Financing activities
3. Contingent activities
4. Operating activities

4) Dividend received in an example of:

1. Cash flow from operating activities
2. Cash flow from investing activities
3. Cash flow from financing activities
4. None of the given options

5) Which of the following is /are types of inventories

1. Raw material
2. Finished goods
3. Work in process
4. All of the given options

6) Unsystematic risk is also known as:

1. Unavoidable risk
2. Market risk
3. Controllable risk
4. Undiversifiable risk

7) Cash flow as a result of changes in fixed assets are relevant to:

1. Contingent activities
2. Operating activities
3. Investing activities
4. Financing activities

8) Coefficient of variation is a measure of relative dispersion (risk) per unit of:

1. Expected risk
2. Expected return
3. Expected volatility
4. All of the above given options

9) Which of the following situations is generally not possible in a business

1. Cash flows are in surplus but net profit in negative
2. Non-cash expenses may increase cash flows but reduce net profit
3. Net profit is positive but cash flows are in deficit
4. None of the given options

10) Profit and cash flows are different because in profit or loss account:

1. Inflow of receivable from precious years has no effect on current profit
2. Capitalizing the certain expenses changes the amount of profit
3. Non-cash expenses have no effect on profit
4. All of the given options are correct

11) The two external sources of financing available to a business includes:

1. Debt and equality
2. Equality and interest
3. Debt and dividend
4. Dividend and interest

12) Cash flows as a result of changes in accounts receivable are relevant to:

1. Operating activities
2. Financing activities
3. Contingent activities
4. Investing activities

13) Which of the following costs are associated with inventory

1. Re-order costs
2. Inventory purchase price
3. Holding costs
4. All of the given options

14) Which of the following is not concerned with the cash flows from financing activities of a business

1. Short term borrowing
2. Current portion of long-term debt
3. Spontaneous Financing
4. Bonds issued to general public

15) Which one of the following does not cause cash outflow in a business

1. Selling marketable securities
2. Purchasing goods
3. Paying dividend
4. Repayment of loan

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