elect01
  • 1. This details the requesting entity's justification for undertaking the proposal
A) Request and authority section
B) none of these
C) Supporting Documentation Section
D) All of these
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) Market Value
B) none of these
C) Book Value
D) Par Value
E) Non Par Value
  • 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) none of these
B) All of these
C) Solvency
D) Liquidity
E) Profitability
  • 5. Which of the following are not example of advantages of short-term credit?
A) They are easier to obtain
B) Short-term financing offer flexibility to the borrower
C) all of these
D) none of these
E) Short-term financing is often less costly
  • 6. It is a right given by the corporation to an individual allowing him.
A) Stock option
B) none of these
C) Stock dividends
D) Stock Splits
E) Acquisition
  • 7. date start: Mar. 22

    credit term: 15/15

    listed price: P125,500

    DATE PAID: April 5

    HOW MUCH THE DISCOUNT?
A) P106,675
B) P18,825
C) ALL OF THESE
D) P150,650
E) NONE OF THESE
  • 8. Consist of more specialized forms of credit bureaus.
A) References
B) none of these
C) Bank
D) Credit Bureaus
E) Credit reporting agencies
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) All of these
B) none of these
C) Administrative cost
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) Promissory note
B) none of these
C) All of these
D) Trade Acceptance
E) Open-book credit
  • 11. Anah has an item listed P250,000 she sold it and given 35% discount who paid in cash. Find the Trade discount?
A) P87,500
B) ALL OF THESE
C) P120,454.50
D) P120,500
E) NONE OF THESE
  • 12. The stated value in the shares of corporation stock is called
A) Market Value
B) Non Par Value
C) none of these
D) Book Value of Stock
E) Par Value
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) Accounts receivable
B) none of these
C) Mercantile credit
D) Commercial credit
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) P9,922,500
B) all of these
C) P5,775
D) none of these
E) P99,225
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Stock option
B) Stock split
C) Acquisition
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) ALL OF THESE
C) P1,750
D) none of these
E) P700
  • 17. The planning and control expenditures is referred to as______.
A) Capital expenditures
B) none of these
C) All of these
D) Capital Valuation
E) Capital budgeting
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Business finance companies
B) none of these
C) Sales finance companies
D) Personal finance companies
E) Insurance companies
  • 19. The following are example of credit bureaus except:
A) Report
B) Credit guides
C) Bulletins
D) Special Services
E) none of these
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) none of these
B) Deferred items
C) Prepaid expense
D) Unearned Revenue
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) none of these
B) Open- book credit
C) Promissory note
D) All 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) All of these
D) Discount value of the anticipated cash inflow and outflow
E) Discount value of the anticipated cash inflow
  • 24. Those share of stock without a face or nominal value.
A) Non Par Value
B) none of these
C) Par Value
D) Book Value of Stock
E) Market Value
  • 25. it is a short-term promissory note, generally unsecured and which is gold through commercial paper dealer or directly to investor.
A) none of these
B) All of these
C) Commercial papers
D) Finance companies
E) Insurance companies
  • 26. Refers to the ability of the applicant to operate successfully.
A) Capital
B) Condition
C) none of these
D) Character
E) Capacity
  • 27. Anyone who has bought from a business without payment (buying on credit) is known as a
A) CREDITOR
B) DEBTOR
  • 28. The formula of CURRENT ASSETS - CURRENT LIABILITIES =___________ What account title?
A) Balance sheet
B) Income statement
C) none of these
D) All of these
E) Working Capital
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) All of these
B) none of these
C) Average Return on Investment
D) Payback method
E) Discounted cash flow method
  • 30. Refers to the total amount of current assets minus current liabilities.
A) net working Capital
B) Cash management
C) none of these
D) Total Capital
E) Accounts receivable requirement
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 5
B) none of these
C) 7
D) 2
E) 10
  • 32. What is the difference between a cash surplus and a cash deficit?
A) none of these
B) A cash surplus occurs when a business has no cash, while a cash deficit occurs when a business has some cash.
C) 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.
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) P510
B) none of these
C) P170
D) P830
E) ALL OF THESE
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Investment
B) none of these
C) Warrant
D) Acquisition
E) Convertible Securities
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) Both True and False
B) All of these
C) none of these
D) FALSE
E) TRUE
  • 36. which of the following could be turned into cash the easiest or quickest?
A) none of these
B) unfinished products being manufactured
C) finished product sitting in a warehouse
D) all of these
E) raw materials
  • 37. current liabilities are debt that has to be paid________________.
A) in order to buy a current assets
B) to buy more working capital
C) in the next 12 months
D) in the next 5yrs or more
  • 38. Which of the following are example of sources of credit information?
A) none of these
B) Reference
C) Credit guides
D) Personal Interview
E) Credit Bureaus
  • 39. Which of the following is not a reason why businesses need cash?
A) none of these
B) To increase profits
C) To hire new employees
D) To pay bills and expenses
E) To invest in new projects
  • 40. The classes of Capital Expenditures may be classified into________.
A) 8
B) 6
C) none of these
D) 5
E) 10
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) All of these
B) none of these
C) Later investment
D) Other investment
E) Initial Investment
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) none of these
B) Repair
C) Risk Involved
D) Credit
E) Urgency
  • 43. Commercial banks offer short-term loans which are either_________.
A) neither Secured Nor Unsecured
B) Both Secured and Unsecured
C) Unsecured
D) none of these
E) Secured
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) Common Stock
B) none of these
C) Deferred Stock
D) All of these
E) Preferred Stock
  • 45. date start: July 31

    credit term: 5.5/30

    listed price: P105,000

    DATE PAID: Aug. 31

    HOW MUCH THE DISCOUNT?
A) P99,225
B) P5,775
C) P9,922,500
D) No DISCOUNT
E) none of these
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) References
B) Bank
C) Personal Interview
D) none of these
E) Credit Bureaus
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) Strategic investment
B) Expansion investment
C) none of these
D) New market investment
E) Replacement investment
  • 48. THE GOAL OF WORKING CAPITAL MANAGEMENT IS TO ENSURE ADEQUATE CASH FLOW FOR OPERATIONS.
A) true
B) FALSE
  • 49. Accrued taxes normally takes a longer time lag before payment becomes due.
A) TRUE
B) All of these
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) Long-term financing
B) All of these
C) Intermediate-term financing
D) none of these
E) Short-term financing
  • 51. Refers to the reputation for honesty and fair dealing of the applicant or the owner of the firm applying for credit.
A) Capacity
B) Character
C) Capital
D) Condition
E) none of these
  • 52. Why is working capital important?
A) It indicates the solvency of a company
B) none of these
C) It shows the liquidity of a company
D) It shows the market capitalization 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) P1,750
B) ALL OF THESE
C) P700
D) P750
E) NONE OF THESE
  • 54. the capital requirement of the firm may be classified into three, except:
A) none of these
B) Medium - term
C) Short-term
D) Long-term
E) All of these
  • 55. Refers to the activity that keep track of how many of the procured items needed to create a product.
A) All of these
B) Inventory Investment
C) Inventory Management
D) Inventory
E) none of these
  • 56. The following are example of stock financing advantages, which is/are not?
A) All of these
B) It does not burden the company with redeeming the stock at given date
C) Stock issuance does not require collaterals
D) none of these
E) Stock are not interesting bearing
  • 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) P45,500
B) P42,750
C) P2,250
D) none of these
E) ALL OF THESE
  • 58. date start: Mar. 22

    credit term: 15/15

    listed price: P125,500

    DATE PAID: April 5

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