elect01
  • 1. This details the requesting entity's justification for undertaking the proposal
A) All of these
B) Request and authority section
C) Supporting Documentation Section
D) none 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) Non Par Value
B) Book Value
C) Market Value
D) none of these
E) Par Value
  • 3. A company that uses more current liabilities will have a higher level of liquidity as well as its profitability.
A) true
B) false
  • 4. Refers to the ability of the firm to pay its bills on times or otherwise meet its current obligation.
A) Liquidity
B) Profitability
C) none of these
D) Solvency
E) All of these
  • 5. Which of the following are not example of advantages of short-term credit?
A) They are easier to obtain
B) none of these
C) Short-term financing offer flexibility to the borrower
D) all 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 dividends
B) Stock option
C) none of these
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) P18,825
B) P150,650
C) ALL OF THESE
D) P106,675
E) NONE OF THESE
  • 8. Consist of more specialized forms of credit bureaus.
A) Credit Bureaus
B) Credit reporting agencies
C) Bank
D) none of these
E) References
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) Cost of invested funds
B) Bad debt cost
C) Administrative cost
D) All of these
E) none of these
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) Open-book credit
B) Promissory note
C) none of these
D) Trade Acceptance
E) All of these
  • 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) NONE OF THESE
C) P120,500
D) P120,454.50
E) ALL OF THESE
  • 12. The stated value in the shares of corporation stock is called
A) Non Par Value
B) Market Value
C) Book Value of Stock
D) none of these
E) Par Value
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) All of these
B) Mercantile credit
C) none of these
D) Accounts receivable
E) Commercial credit
  • 14. date start: May 10

    credit term: 5.5/30

    listed price: P105,000

    DATE PAID: June 15

    HOW MUCH THE DISCOUNT?
A) P99,225
B) P9,922,500
C) all of these
D) none of these
E) P5,775
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Stock split
B) Acquisition
C) Stock option
D) none of these
E) Stock dividends
  • 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) P700
D) none of these
E) P1,750
  • 17. The planning and control expenditures is referred to as______.
A) All of these
B) Capital Valuation
C) Capital budgeting
D) Capital expenditures
E) none of these
  • 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) Special Services
B) Report
C) Bulletins
D) Credit guides
E) none of these
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Prepaid expense
B) Unearned Revenue
C) Supplies
D) none of these
E) Deferred items
  • 21. It is unsecured and it permits the customer to pay for goods delivered to him in a specified number of days.
A) Trade Acceptance
B) Open- book credit
C) none of these
D) All of these
E) Promissory note
  • 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 inflow and outflow
B) none of these
C) All of these
D) Discount value of the anticipated cash outflow
E) Discount value of the anticipated cash inflow
  • 24. Those share of stock without a face or nominal value.
A) Book Value of Stock
B) Non Par Value
C) none of these
D) Par Value
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) All of these
B) Commercial papers
C) Insurance companies
D) Finance companies
E) none of these
  • 26. Refers to the ability of the applicant to operate successfully.
A) Capacity
B) none of these
C) Capital
D) Character
E) Condition
  • 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) Working Capital
B) Balance sheet
C) none of these
D) Income statement
E) All of these
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) All of these
B) Payback method
C) Discounted cash flow method
D) Average Return on Investment
E) none of these
  • 30. Refers to the total amount of current assets minus current liabilities.
A) net working Capital
B) Accounts receivable requirement
C) Cash management
D) none of these
E) Total Capital
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 7
B) 10
C) 5
D) 2
E) none of these
  • 32. What is the difference between a cash surplus and a cash deficit?
A) 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.
B) All 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) none of these
E) 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.
  • 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) none of these
B) P170
C) P830
D) P510
E) ALL OF THESE
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Warrant
B) none of these
C) Investment
D) Convertible Securities
E) Acquisition
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) All of these
B) none of these
C) Both True and False
D) TRUE
E) FALSE
  • 36. which of the following could be turned into cash the easiest or quickest?
A) raw materials
B) unfinished products being manufactured
C) all of these
D) none of these
E) finished product sitting in a warehouse
  • 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) Credit Bureaus
B) none of these
C) Credit guides
D) Reference
E) Personal Interview
  • 39. Which of the following is not a reason why businesses need cash?
A) To pay bills and expenses
B) To hire new employees
C) To increase profits
D) To invest in new projects
E) none of these
  • 40. The classes of Capital Expenditures may be classified into________.
A) 6
B) 10
C) 8
D) none of these
E) 5
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) Other investment
B) none of these
C) Initial Investment
D) All of these
E) Later investment
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Repair
B) none of these
C) Credit
D) Urgency
E) Risk Involved
  • 43. Commercial banks offer short-term loans which are either_________.
A) neither Secured Nor Unsecured
B) Secured
C) Unsecured
D) none of these
E) Both Secured and Unsecured
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) All of these
B) Deferred Stock
C) Common Stock
D) Preferred Stock
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) No DISCOUNT
B) P99,225
C) none of these
D) P5,775
E) P9,922,500
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Credit Bureaus
B) Personal Interview
C) Bank
D) none of these
E) References
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) New market investment
B) Strategic investment
C) Replacement investment
D) Expansion investment
E) none of these
  • 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) FALSE
B) TRUE
C) Both True and False
D) All of these
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) Short-term financing
C) All of these
D) none of these
E) Intermediate-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) none of these
B) It shows the market capitalization of a company
C) It indicates the profitability of a company
D) It shows the liquidity of a company
E) It indicates the solvency 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) P750
B) P700
C) P1,750
D) NONE OF THESE
E) ALL OF THESE
  • 54. the capital requirement of the firm may be classified into three, except:
A) Short-term
B) All of these
C) none of these
D) Long-term
E) Medium - term
  • 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 Management
C) Inventory Investment
D) none of these
E) Inventory
  • 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) none of these
D) Stock are not interesting bearing
E) All 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) P2,250
B) P45,500
C) ALL OF THESE
D) P42,750
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) P150,650
B) ALL OF THESE
C) NONE OF THESE
D) P106,675
E) P18,825
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Establishing Priorities
B) Cash Planning
C) none of these
D) Revising Plans
E) Eliminating duplication
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) New market investment
B) Expansion investment
C) Other Investment
D) Replacement investment
E) none of these
  • 61. Refers to credit flowing from a large business to small business.
A) All of these
B) Interbusiness credit financing
C) Inter business credit
D) Interbusiness Financing
E) none of these
  • 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) P510
D) P830
E) NONE OF THESE
  • 63. Common stock financing has certain advantages which one is not?
A) none of these
B) All of these
C) There is no fixed maturity date attached to common stock financing
D) There are times when common stock is easier to sell then debt.
E) It does not entail fixed charges
  • 64. Which of the following are not example of class of Capital Expenditures?
A) Expansion investment
B) Strategics investment
C) Environment Project
D) Replacement investment
E) none of these
  • 65. It is a sources of long-term capital.
A) Stock Financing
B) none of these
C) Common stock
D) Treasury Stock
E) Capital stock
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