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  • 1. This details the requesting entity's justification for undertaking the proposal
A) Supporting Documentation Section
B) none of these
C) All of these
D) Request and authority section
E) Narratives Section
  • 2. Refers to the stated Value of as Stock based on the Accounting concepts of recorded value as reflected in the Balance Sheet.
A) Non Par Value
B) Par Value
C) Book Value
D) Market Value
E) none of these
  • 3. A company that uses more current liabilities will have a higher level of liquidity as well as its profitability.
A) false
B) true
  • 4. Refers to the ability of the firm to pay its bills on times or otherwise meet its current obligation.
A) All of these
B) none of these
C) Profitability
D) Liquidity
E) Solvency
  • 5. Which of the following are not example of advantages of short-term credit?
A) Short-term financing is often less costly
B) none of these
C) They are easier to obtain
D) all of these
E) Short-term financing offer flexibility to the borrower
  • 6. It is a right given by the corporation to an individual allowing him.
A) Stock option
B) Stock Splits
C) none of these
D) Stock dividends
E) Acquisition
  • 7. date start: Mar. 22

    credit term: 15/15

    listed price: P125,500

    DATE PAID: April 5

    HOW MUCH THE DISCOUNT?
A) P18,825
B) NONE OF THESE
C) P106,675
D) P150,650
E) ALL OF THESE
  • 8. Consist of more specialized forms of credit bureaus.
A) Credit Bureaus
B) none of these
C) Credit reporting agencies
D) References
E) Bank
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) Administrative cost
B) none of these
C) All of these
D) Bad debt cost
E) Cost of invested funds
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) Open-book credit
B) All of these
C) Trade Acceptance
D) none of these
E) Promissory note
  • 11. Anah has an item listed P250,000 she sold it and given 35% discount who paid in cash. Find the Trade discount?
A) ALL OF THESE
B) P120,500
C) P120,454.50
D) P87,500
E) NONE OF THESE
  • 12. The stated value in the shares of corporation stock is called
A) Market Value
B) Non Par Value
C) Par Value
D) Book Value of Stock
E) none of these
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) none of these
B) Commercial credit
C) Mercantile credit
D) Accounts receivable
E) All of these
  • 14. date start: May 10

    credit term: 5.5/30

    listed price: P105,000

    DATE PAID: June 15

    HOW MUCH THE DISCOUNT?
A) P5,775
B) P99,225
C) P9,922,500
D) none of these
E) all of these
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Stock option
B) Acquisition
C) Stock split
D) Stock dividends
E) none of these
  • 16. Salac will buy a coffee maker that lists for P1,500 and has a trade discount of 50%. how much THE DISCOUNT?
A) P750
B) none of these
C) P1,750
D) P700
E) ALL OF THESE
  • 17. The planning and control expenditures is referred to as______.
A) All of these
B) Capital budgeting
C) Capital Valuation
D) none of these
E) Capital expenditures
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Business finance companies
B) Personal finance companies
C) Insurance companies
D) none of these
E) Sales finance companies
  • 19. The following are example of credit bureaus except:
A) Bulletins
B) Credit guides
C) Report
D) none of these
E) Special Services
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Deferred items
B) Prepaid expense
C) Unearned Revenue
D) none of these
E) Supplies
  • 21. It is unsecured and it permits the customer to pay for goods delivered to him in a specified number of days.
A) Promissory note
B) All of these
C) Open- book credit
D) none of these
E) Trade Acceptance
  • 22. sufficient working capital is needed to prevent a business from becoming insolvent.
A) false
B) true
  • 23. PVCI means____________.
A) Discount value of the anticipated cash outflow
B) none of these
C) Discount value of the anticipated cash inflow
D) Discount value of the anticipated cash inflow and outflow
E) All of these
  • 24. Those share of stock without a face or nominal value.
A) none of these
B) Non Par Value
C) Market Value
D) Book Value of Stock
E) Par Value
  • 25. it is a short-term promissory note, generally unsecured and which is gold through commercial paper dealer or directly to investor.
A) Insurance companies
B) All of these
C) Commercial papers
D) Finance companies
E) none of these
  • 26. Refers to the ability of the applicant to operate successfully.
A) Character
B) Condition
C) none of these
D) Capacity
E) Capital
  • 27. Anyone who has bought from a business without payment (buying on credit) is known as a
A) DEBTOR
B) CREDITOR
  • 28. The formula of CURRENT ASSETS - CURRENT LIABILITIES =___________ What account title?
A) All of these
B) Working Capital
C) Balance sheet
D) Income statement
E) none of these
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) Average Return on Investment
B) All of these
C) Payback method
D) Discounted cash flow method
E) none of these
  • 30. Refers to the total amount of current assets minus current liabilities.
A) Cash management
B) Total Capital
C) Accounts receivable requirement
D) none of these
E) net working Capital
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 2
B) 5
C) 7
D) none of these
E) 10
  • 32. What is the difference between a cash surplus and a cash deficit?
A) A cash surplus occurs when a business has more cash than it needs, while a cash deficit occurs when a business has less cash than it needs.
B) none of these
C) A cash surplus occurs when a business has no cash, while a cash deficit occurs when a business has some cash.
D) All of these
E) A cash surplus occurs when a business has less cash than it needs, while a cash deficit occurs when a business has more cash than it needs.
  • 33. Ompad will buy a box of canned sardines that list for P680 and has a trade discount of 25%. How much is the TRADE DISCOUNT?
A) P830
B) none of these
C) P510
D) P170
E) ALL OF THESE
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Convertible Securities
B) Acquisition
C) Warrant
D) none of these
E) Investment
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) All of these
B) TRUE
C) none of these
D) FALSE
E) Both True and False
  • 36. which of the following could be turned into cash the easiest or quickest?
A) all of these
B) finished product sitting in a warehouse
C) unfinished products being manufactured
D) raw materials
E) none of these
  • 37. current liabilities are debt that has to be paid________________.
A) in the next 5yrs or more
B) to buy more working capital
C) in the next 12 months
D) in order to buy a current assets
  • 38. Which of the following are example of sources of credit information?
A) Reference
B) Personal Interview
C) Credit Bureaus
D) Credit guides
E) none of these
  • 39. Which of the following is not a reason why businesses need cash?
A) none of these
B) To hire new employees
C) To increase profits
D) To pay bills and expenses
E) To invest in new projects
  • 40. The classes of Capital Expenditures may be classified into________.
A) 6
B) 5
C) none of these
D) 8
E) 10
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) Other investment
B) Initial Investment
C) Later investment
D) All of these
E) none of these
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Repair
B) Urgency
C) Credit
D) Risk Involved
E) none of these
  • 43. Commercial banks offer short-term loans which are either_________.
A) Both Secured and Unsecured
B) Secured
C) Unsecured
D) none of these
E) neither Secured Nor Unsecured
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) Deferred Stock
B) Preferred Stock
C) Common Stock
D) All of these
E) none of these
  • 45. date start: July 31

    credit term: 5.5/30

    listed price: P105,000

    DATE PAID: Aug. 31

    HOW MUCH THE DISCOUNT?
A) P9,922,500
B) none of these
C) P5,775
D) P99,225
E) No DISCOUNT
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Credit Bureaus
B) Bank
C) References
D) Personal Interview
E) none of these
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) Expansion investment
B) none of these
C) New market investment
D) Replacement investment
E) Strategic investment
  • 48. THE GOAL OF WORKING CAPITAL MANAGEMENT IS TO ENSURE ADEQUATE CASH FLOW FOR OPERATIONS.
A) FALSE
B) true
  • 49. Accrued taxes normally takes a longer time lag before payment becomes due.
A) All of these
B) TRUE
C) Both True and False
D) FALSE
E) none of these
  • 50. Deals with the demand for and supply Short-term of funds which may either be secured or unsecured.
A) Short-term financing
B) Long-term financing
C) Intermediate-term financing
D) none of these
E) All of these
  • 51. Refers to the reputation for honesty and fair dealing of the applicant or the owner of the firm applying for credit.
A) Capital
B) none of these
C) Condition
D) Character
E) Capacity
  • 52. Why is working capital important?
A) It indicates the solvency of a company
B) none of these
C) It shows the market capitalization of a company
D) It shows the liquidity of a company
E) It indicates the profitability of a company
  • 53. Salac will buy a coffee maker that lists for P1,500 and has a trade discount of 50%. how much will salac pay?
A) ALL OF THESE
B) P1,750
C) NONE OF THESE
D) P750
E) P700
  • 54. the capital requirement of the firm may be classified into three, except:
A) Medium - term
B) Long-term
C) none of these
D) All of these
E) Short-term
  • 55. Refers to the activity that keep track of how many of the procured items needed to create a product.
A) Inventory Investment
B) none of these
C) Inventory Management
D) Inventory
E) All of these
  • 56. The following are example of stock financing advantages, which is/are not?
A) It does not burden the company with redeeming the stock at given date
B) Stock issuance does not require collaterals
C) All of these
D) Stock are not interesting bearing
E) none of these
  • 57. date start: Feb. 23,2024

    credit term: 5/10

    listed price: P45,000

    DATE PAID: Mar. 3

    HOW MUCH THE TOTAL AMOUNT PAID?
A) ALL OF THESE
B) P42,750
C) P45,500
D) P2,250
E) none of these
  • 58. date start: Mar. 22

    credit term: 15/15

    listed price: P125,500

    DATE PAID: April 5

    HOW MUCH THE DISCOUNT?
A) NONE OF THESE
B) P106,675
C) P150,650
D) P18,825
E) ALL OF THESE
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Establishing Priorities
B) Eliminating duplication
C) Cash Planning
D) none of these
E) Revising Plans
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) Replacement investment
B) Other Investment
C) New market investment
D) Expansion investment
E) none of these
  • 61. Refers to credit flowing from a large business to small business.
A) Interbusiness credit financing
B) All of these
C) none of these
D) Interbusiness Financing
E) Inter business credit
  • 62. Ompad will buy a box of canned sardines that list for P680 and has a trade discount of 25%. How much is the NET PRICE?
A) ALL OF THESE
B) P170
C) P830
D) NONE OF THESE
E) P510
  • 63. Common stock financing has certain advantages which one is not?
A) All of these
B) It does not entail fixed charges
C) There are times when common stock is easier to sell then debt.
D) There is no fixed maturity date attached to common stock financing
E) none of these
  • 64. Which of the following are not example of class of Capital Expenditures?
A) Replacement investment
B) none of these
C) Expansion investment
D) Strategics investment
E) Environment Project
  • 65. It is a sources of long-term capital.
A) Treasury Stock
B) Common stock
C) none of these
D) Stock Financing
E) Capital stock
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