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  • 1. This details the requesting entity's justification for undertaking the proposal
A) Request and authority section
B) Supporting Documentation Section
C) Narratives Section
D) none of these
E) All of these
  • 2. Refers to the stated Value of as Stock based on the Accounting concepts of recorded value as reflected in the Balance Sheet.
A) none of these
B) Book Value
C) Par Value
D) Market 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) true
B) false
  • 4. Refers to the ability of the firm to pay its bills on times or otherwise meet its current obligation.
A) Profitability
B) Solvency
C) none of these
D) Liquidity
E) All of these
  • 5. Which of the following are not example of advantages of short-term credit?
A) Short-term financing is often less costly
B) Short-term financing offer flexibility to the borrower
C) They are easier to obtain
D) none of these
E) all of these
  • 6. It is a right given by the corporation to an individual allowing him.
A) Acquisition
B) Stock Splits
C) Stock option
D) Stock dividends
E) none of these
  • 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) Bank
C) none of these
D) Credit reporting agencies
E) References
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) none of these
B) Cost of invested funds
C) Bad debt cost
D) All of these
E) Administrative cost
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) Trade Acceptance
B) none of these
C) Promissory note
D) Open-book credit
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) ALL OF THESE
B) P120,500
C) P87,500
D) P120,454.50
E) NONE OF THESE
  • 12. The stated value in the shares of corporation stock is called
A) Book Value of Stock
B) Market Value
C) none of these
D) Par Value
E) Non Par Value
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) Mercantile credit
B) Accounts receivable
C) Commercial credit
D) none of these
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) none of these
C) P99,225
D) P9,922,500
E) all of these
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Stock dividends
B) none of these
C) Acquisition
D) Stock split
E) Stock option
  • 16. Salac will buy a coffee maker that lists for P1,500 and has a trade discount of 50%. how much THE DISCOUNT?
A) P700
B) none of these
C) ALL OF THESE
D) P750
E) P1,750
  • 17. The planning and control expenditures is referred to as______.
A) Capital expenditures
B) Capital budgeting
C) Capital Valuation
D) none of these
E) All of these
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Business finance companies
B) Insurance companies
C) none of these
D) Sales finance companies
E) Personal finance companies
  • 19. The following are example of credit bureaus except:
A) Bulletins
B) none of these
C) Credit guides
D) Special Services
E) Report
  • 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) All of these
B) Open- book credit
C) none of these
D) Trade Acceptance
E) Promissory note
  • 22. sufficient working capital is needed to prevent a business from becoming insolvent.
A) true
B) false
  • 23. PVCI means____________.
A) Discount value of the anticipated cash outflow
B) none of these
C) Discount value of the anticipated cash inflow
D) All of these
E) Discount value of the anticipated cash inflow and outflow
  • 24. Those share of stock without a face or nominal value.
A) Book Value of Stock
B) Non Par Value
C) Par Value
D) Market Value
E) none of these
  • 25. it is a short-term promissory note, generally unsecured and which is gold through commercial paper dealer or directly to investor.
A) Commercial papers
B) All of these
C) none of these
D) Finance companies
E) Insurance companies
  • 26. Refers to the ability of the applicant to operate successfully.
A) Character
B) Capital
C) Condition
D) none of these
E) Capacity
  • 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) Balance sheet
B) none of these
C) Income statement
D) Working Capital
E) All of these
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) Average Return on Investment
B) Payback method
C) none of these
D) All of these
E) Discounted cash flow method
  • 30. Refers to the total amount of current assets minus current liabilities.
A) Total Capital
B) Cash management
C) net working Capital
D) Accounts receivable requirement
E) none of these
  • 31. The objectives off the Capital Budgeting are classified into______.
A) none of these
B) 5
C) 2
D) 7
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 less cash than it needs, while a cash deficit occurs when a business has more cash than it needs.
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 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) P510
B) ALL OF THESE
C) P170
D) none of these
E) P830
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Investment
B) none of these
C) Warrant
D) Convertible Securities
E) Acquisition
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) none of these
B) FALSE
C) Both True and False
D) TRUE
E) All of these
  • 36. which of the following could be turned into cash the easiest or quickest?
A) raw materials
B) finished product sitting in a warehouse
C) all of these
D) unfinished products being manufactured
E) none of these
  • 37. current liabilities are debt that has to be paid________________.
A) in the next 12 months
B) in the next 5yrs or more
C) in order to buy a current assets
D) to buy more working capital
  • 38. Which of the following are example of sources of credit information?
A) Reference
B) Personal Interview
C) Credit guides
D) Credit Bureaus
E) none of these
  • 39. Which of the following is not a reason why businesses need cash?
A) To hire new employees
B) To invest in new projects
C) To pay bills and expenses
D) none of these
E) To increase profits
  • 40. The classes of Capital Expenditures may be classified into________.
A) none of these
B) 6
C) 8
D) 10
E) 5
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) none of these
B) Initial Investment
C) All of these
D) Other investment
E) Later investment
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Risk Involved
B) none of these
C) Credit
D) Urgency
E) Repair
  • 43. Commercial banks offer short-term loans which are either_________.
A) Secured
B) neither Secured Nor Unsecured
C) none of these
D) Unsecured
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) none of these
C) Common Stock
D) Preferred Stock
E) Deferred 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) none of these
C) P5,775
D) No DISCOUNT
E) P9,922,500
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) References
B) Personal Interview
C) Credit Bureaus
D) none of these
E) Bank
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) Expansion investment
B) none of these
C) Strategic investment
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) none of these
B) Both True and False
C) TRUE
D) All of these
E) FALSE
  • 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) All of these
D) Intermediate-term financing
E) none 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) Capacity
C) Character
D) Condition
E) none of these
  • 52. Why is working capital important?
A) It indicates the profitability of a company
B) It shows the liquidity of a company
C) It shows the market capitalization of a company
D) It indicates the solvency of a company
E) none of these
  • 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) NONE OF THESE
D) P1,750
E) ALL OF THESE
  • 54. the capital requirement of the firm may be classified into three, except:
A) All of these
B) Short-term
C) Long-term
D) none of these
E) Medium - term
  • 55. Refers to the activity that keep track of how many of the procured items needed to create a product.
A) Inventory
B) none of these
C) Inventory Investment
D) Inventory Management
E) All of these
  • 56. The following are example of stock financing advantages, which is/are not?
A) Stock issuance does not require collaterals
B) It does not burden the company with redeeming the stock at given date
C) Stock are not interesting bearing
D) none of these
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) P45,500
B) P42,750
C) none of these
D) ALL OF THESE
E) P2,250
  • 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) P106,675
C) NONE OF THESE
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) Revising Plans
D) Cash Planning
E) none of these
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) New market investment
B) none of these
C) Replacement investment
D) Expansion investment
E) Other Investment
  • 61. Refers to credit flowing from a large business to small business.
A) Interbusiness Financing
B) none of these
C) Interbusiness credit financing
D) All of these
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) P830
C) NONE OF THESE
D) P510
E) P170
  • 63. Common stock financing has certain advantages which one is not?
A) none 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) All of these
  • 64. Which of the following are not example of class of Capital Expenditures?
A) Replacement investment
B) Environment Project
C) Strategics investment
D) Expansion investment
E) none of these
  • 65. It is a sources of long-term capital.
A) Stock Financing
B) Capital stock
C) Common stock
D) Treasury Stock
E) none of these
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