elect01
  • 1. This details the requesting entity's justification for undertaking the proposal
A) none of these
B) Narratives Section
C) All of these
D) Supporting Documentation Section
E) Request and authority 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) none of these
E) Market 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) Solvency
B) none of these
C) Liquidity
D) Profitability
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) Short-term financing is often less costly
C) none of these
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 dividends
B) Acquisition
C) Stock option
D) none of these
E) Stock Splits
  • 7. 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) P106,675
E) P18,825
  • 8. Consist of more specialized forms of credit bureaus.
A) Credit reporting agencies
B) Bank
C) References
D) none of these
E) Credit Bureaus
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) All of these
B) Cost of invested funds
C) none of these
D) Bad debt cost
E) Administrative cost
  • 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) Open-book credit
D) All of these
E) Trade Acceptance
  • 11. Anah has an item listed P250,000 she sold it and given 35% discount who paid in cash. Find the Trade discount?
A) P120,500
B) P120,454.50
C) NONE OF THESE
D) P87,500
E) ALL OF THESE
  • 12. The stated value in the shares of corporation stock is called
A) Par Value
B) Market Value
C) Book Value of Stock
D) none of these
E) Non Par Value
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) none of these
B) Commercial credit
C) Accounts receivable
D) All of these
E) Mercantile credit
  • 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) P99,225
C) none of these
D) P5,775
E) all of these
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Acquisition
B) Stock option
C) none of these
D) Stock split
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) none of these
B) P750
C) P700
D) P1,750
E) ALL OF THESE
  • 17. The planning and control expenditures is referred to as______.
A) none of these
B) Capital expenditures
C) All of these
D) Capital Valuation
E) Capital budgeting
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) none of these
B) Insurance companies
C) Sales finance companies
D) Personal finance companies
E) Business finance companies
  • 19. The following are example of credit bureaus except:
A) none of these
B) Credit guides
C) Report
D) Special Services
E) Bulletins
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Deferred items
B) none of these
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) All of these
B) Open- book credit
C) Trade Acceptance
D) none of these
E) Promissory note
  • 22. sufficient working capital is needed to prevent a business from becoming insolvent.
A) true
B) false
  • 23. PVCI means____________.
A) All of these
B) Discount value of the anticipated cash inflow and outflow
C) Discount value of the anticipated cash inflow
D) none of these
E) Discount value of the anticipated cash outflow
  • 24. Those share of stock without a face or nominal value.
A) none of these
B) Non Par Value
C) Book Value of Stock
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) Finance companies
D) Insurance companies
E) none of these
  • 26. Refers to the ability of the applicant to operate successfully.
A) Capacity
B) Character
C) none of these
D) Capital
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) Income statement
B) Balance sheet
C) All of these
D) none of these
E) Working Capital
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) none of these
B) Payback method
C) All of these
D) Discounted cash flow method
E) Average Return on Investment
  • 30. Refers to the total amount of current assets minus current liabilities.
A) net working Capital
B) none of these
C) Accounts receivable requirement
D) Total Capital
E) Cash management
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 10
B) 5
C) 2
D) none of these
E) 7
  • 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) A cash surplus occurs when a business has no cash, while a cash deficit occurs when a business has some cash.
C) none of these
D) 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.
E) All of these
  • 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) P830
D) P170
E) none of these
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Investment
B) none of these
C) Convertible Securities
D) Acquisition
E) Warrant
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) FALSE
B) Both True and False
C) TRUE
D) All of these
E) none of these
  • 36. which of the following could be turned into cash the easiest or quickest?
A) finished product sitting in a warehouse
B) unfinished products being manufactured
C) raw materials
D) all of these
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 order to buy a current assets
D) in the next 12 months
  • 38. Which of the following are example of sources of credit information?
A) none of these
B) Credit Bureaus
C) Personal Interview
D) Credit guides
E) Reference
  • 39. Which of the following is not a reason why businesses need cash?
A) To hire new employees
B) To pay bills and expenses
C) To invest in new projects
D) none of these
E) To increase profits
  • 40. The classes of Capital Expenditures may be classified into________.
A) 10
B) 5
C) 8
D) 6
E) none of these
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) Initial Investment
B) Later investment
C) All of these
D) Other investment
E) none of these
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Urgency
B) none of these
C) Credit
D) Repair
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) Preferred Stock
B) Deferred Stock
C) All of these
D) Common 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) P5,775
C) P9,922,500
D) none of these
E) P99,225
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) References
B) none of these
C) Personal Interview
D) Credit Bureaus
E) Bank
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) Replacement investment
B) Strategic investment
C) none of these
D) Expansion investment
E) New market 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) TRUE
B) All of these
C) FALSE
D) none of these
E) Both True and False
  • 50. Deals with the demand for and supply Short-term of funds which may either be secured or unsecured.
A) Intermediate-term financing
B) none of these
C) All of these
D) Short-term financing
E) Long-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) none of these
B) Condition
C) Character
D) Capacity
E) Capital
  • 52. Why is working capital important?
A) It shows the liquidity of a company
B) It shows the market capitalization of a company
C) none of these
D) It indicates the solvency 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) NONE OF THESE
C) P1,750
D) P700
E) P750
  • 54. the capital requirement of the firm may be classified into three, except:
A) none of these
B) Short-term
C) All of these
D) Medium - term
E) Long-term
  • 55. Refers to the activity that keep track of how many of the procured items needed to create a product.
A) Inventory Management
B) none of these
C) Inventory
D) Inventory Investment
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) Stock are not interesting bearing
D) All of these
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) P2,250
B) ALL OF THESE
C) P42,750
D) none of these
E) P45,500
  • 58. date start: Mar. 22

    credit term: 15/15

    listed price: P125,500

    DATE PAID: April 5

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