Financial Management NCV Level 4 — Document
November 2022 — NCV Level 4 — Financial Management
NCV Level 4
2022
NCV Business
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Q1— Section header —
1.1Choose an option from COLUMN B that matches a description in COLUMN A. Write only the letter (A \next to the question number (1.1.1
1.1.7\in the ANSWER BOOK. COLUMN A COLUMN B
1.1.7The budgeting process that a business uses to decide on the purchase of non
1.2Various options are given as possible answers to the following questions. Choose the answer and write only the letter (A D\ next to the question number (1.2.1
1.2.10\n the ANSWER BOOK.
1.2.1Which one of the following is a source of funding in a business? Venture capital. Outstanding creditors balances
1.2.2Which statement is NOT true regarded budgeting in a business? Planning for the future. Giving direction to the business. Setting standards to compare business performance.
1.2.3the finance manager in the business. borrower. lender. the loan balance.
1.2.4possessions of a business that will be converted into cash within one year. urrent
1.2.5A business may choose to register voluntarily for VAT if the value of its months. R50 000
1.2.6statement is to show all inco me and expenditure that result in the
1.2.7The report shows all the earning of employees and is submitted twice a year to SARS
1.3.1Describe the term business plan (3\
1.3.2Name THREE assets that could be offered as security against funding. (3\
1.3.3Name TWO examples of expenditure that can be found in the statement of income and expenditure. (2\
1.4Study the following transactions that appeared in the books of Maseng Cleaners and answer the questions that follow All the amounts are VAT inclusive. Round off your answers to two decimals:
1.4.1(a\ Bought stationery for R400 from PCA Stationers. Calculate VAT amount and indicate whether it is input VAT output VAT
1.4Name THREE source documents that Maseng Cleaners have to store in their business regarding transactions with its customers. (3\
1.5
Q2— Section header —
2.1Miyeni Electrical and Supplies (Pty\Ltd grants some of its customers credit. Customers have to pay after 30 days.
2.2State TWO ways in which Miyeni Electrical and Supplies (Pty\Ltd can maintain a positive cash flow. (4\
2.3Mangaliso has to make statutory payments regarding his 12 employees. Name any
2.4Mangaliso needs R75 000 to buy equipment for his expanding business. He has the following two options to raise the money: (a\ Fund National Bank is offering
2.4.1What type of finance is Fund National Bank offering to Mangaliso? Give ONE reason for your answer. (3\
2.4.2Calculate the total interest payable after SIX months on the loan from Fund National Bank HINT: Show the calculations for interest for each of the six months and then the total interest (7\
2.4.3What type of finance is Mangaliso s uncle offering to Mangaliso Give ONE reason for your answer. (3\
2.4.4Calculate the total interest payable on the loan from Mangaliso uncle. (3\
2.4.5State whet alse and give a reason for your answer. Miyeni Electrical and Supplies
2.5The following information is provided by Naidoo Traders: Selling price per unit: Variable costs per unit: Total fixed costs: R60 R20 R110 000
2.5.1Contribution per unit
2.5.2Breakeven quantity/units
2.5.3
2.645
Q3— Section header —
3.1Study the following extract from the records of Miyeni Electrical and Supplies (Pty\td and answer the questions that follow MIYENI ELECTRICAL AND SUPPLIES (PTY\D
3.1.1Calculate the variance for rent income. State whether the variance is avourable nfavourable (3\
3.1.2Give ONE
Q3— Section header —
3.1.3The actual amount for salaries is more than the budgeted amount. Calculate the variance avourable nfavourable (3\
3.1.4Give ONE possible recommendation to address the variance in
Q3— Section header —
3.1.5List TWO expenses with no variances. (2\
3.1.6Calculate the actual sales for April 2022 based on an 11% increase in the actual sales for April 2021. (3\
3.1.7Which budgeting technique was used in QUESTION
3.1.6(1\
3.2
3.3Miyeni Electrical and Supplies (Pty\Ltd wants to purchase a ransformer for the business. It has the following two options and t he costs and cash flows to be generated by the
3.3.1Determine the payback period for Transformer AA. (5\
3.3.2Determine the payback period for Transformer CC. (5\
3.3.3Which ransformer should Miyeni Electrical and Supplies buy based on the calculations above? (2\
3.4Identify the report from each of the descriptions below. Write only the name of report next to the question number (3.4.1
3.4.3\in the ANSWER BOOK. Do not copy the Table in your ANSWERBOOK. NO DESCRIPTION OF THE REPORT NAME OF THE REPORT
3.4.1Ages unpaid invoices from suppliers
3.4.2Shows the financial position of the business
3.4.3Ages outstanding customer balances (3\ [35]35
Q4— Section header —
4.1Explain the term budget (3\
4.2State THREE ways in which business can justify budgeted amounts for proposed activities. (3\
4.3
4.4The following information was taken from the records of Miyeni Electrical and Supplies (Pty\td for the year ended 30 April 2021 MIYENI ELECTRICAL AND SUPPLIES (PTY\D INCOME STATEMENT FOR THE YEAR ENDED 30 APRIL 2021
4.4.1Calculate the gross profit percentage for 2021. Show all formulae and calculations. Round off the answer to TWO decimals. (3\
4.4.2Based on the ratio calculated
Q4— Section header —
4.4.3Calculate the net profit percentage before tax for 2021. Show all formulae and calculations. Round off the answer to TWO decimals. (3\ (3011014\ 11 Copyright reserved
4.5The following information was extracted from the records of Miyeni Electrical and Supplies (Pty\td for the year ended 30 April 2021 Non current liabilities 120 000 Non current assets
4.5.1Calculate the current ratio for 2021. (3\
4.5.2Comment on the ratio calculated in QUESTION
4.5.1based on the acceptable current ratio. (2\
4.5.3Calculate the acid test ratio for 2021. (3\
4.5.4Determine the net worth of Miyeni Electrical Supplies. (5\
4.5.5off the answer to a WHOLE NUMBER. (5\
4.5.6Comment on what the ratio calculated in QUESTION
4.5.5means to the business (2\ [40] (3011014\ 1240
Q5— Section header —
5.1Answer the following questions regarding limited liability:
5.1.1business owes the creditors R3 00 000. State the amount that you will lose if the business goes bankrupt Give a reason for your answer. (3\
5.1.2State whether each of the egard to tax implications of a limited company a\ b\ c\ The r egistered business does not receive tax rebates.
5.2State FOUR pieces of personal in formation required to complete the tax return of an individual. (4\
5.3Briefly describe TWO implications of non compliance with the provision of the Income Tax Act. (4\
5.4Nevhembe has to decide on the cost benefit of the following TWO projects: Project AA has committed expenses of R30 000, other related costs of R60 000 and financial benefit to the business
5.4.1Calculate the cost benefit ratio for project AA.
5.4.2Calculate the cost benefit ratio for project DD.
5.4.3Based on the answers to QUESTIONS 5.4.1 and 5.4.2, state which project would yield the best results in cost benefit ratio and explain
5.5Study the tax tables below and answer the questions: TAX RATES FOR INDIVIDUALS FOR 2021 TAXABLE INCOME RATES OF TAX 205 900 18% of taxable income 205 901
5.5.1Arn o Goldfinger is a sole trader of . H made a net profit of R450 000 for the 2021 year.
5.5.2Kgosimore Lentswe gosimore earn a taxable income of R32 000 per month, receives a bonus of 40% of his annual salary (excluded on taxable income\ and is 42 years old. ar.
Topics Identified
4
Forms of OwnershipBusiness FunctionsLeadershipBusiness Plan
Mark Allocation
Total200 marks
Sections40 + 45 + 35 + 40 + 40 = 200 marks
Paper information
TitleDocument
SubjectFinancial Management
LevelNCV Level 4
Document typeQuestion paper
Year2022
MonthNovember
Pages13
Downloads4
Examination context
Decade2020s
Years ago4y
SeasonSpring (SH)
Start dayTuesday
Exam periodNovember 2022
Days since exam1,442
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