elect01
  • 1. This details the requesting entity's justification for undertaking the proposal
A) All of these
B) none of these
C) Supporting Documentation Section
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) Par Value
B) Non Par Value
C) Market Value
D) none of these
E) Book 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) none of these
B) Solvency
C) All of these
D) Liquidity
E) Profitability
  • 5. Which of the following are not example of advantages of short-term credit?
A) Short-term financing offer flexibility to the borrower
B) They are easier to obtain
C) Short-term financing is often less costly
D) none of these
E) all of these
  • 6. It is a right given by the corporation to an individual allowing him.
A) none of these
B) Stock option
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) NONE OF THESE
B) P18,825
C) P150,650
D) ALL OF THESE
E) P106,675
  • 8. Consist of more specialized forms of credit bureaus.
A) Credit reporting agencies
B) none of these
C) References
D) Bank
E) Credit Bureaus
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) none of these
B) Cost of invested funds
C) Bad debt cost
D) Administrative cost
E) All of these
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) Promissory note
B) Open-book credit
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) ALL OF THESE
B) P120,454.50
C) P87,500
D) NONE OF THESE
E) P120,500
  • 12. The stated value in the shares of corporation stock is called
A) Par Value
B) Non Par Value
C) Book Value of Stock
D) none of these
E) Market Value
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) Mercantile credit
B) Commercial credit
C) none of these
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) none of these
B) all of these
C) P5,775
D) P9,922,500
E) P99,225
  • 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) P700
B) ALL OF THESE
C) P750
D) none of these
E) P1,750
  • 17. The planning and control expenditures is referred to as______.
A) Capital budgeting
B) All of these
C) Capital expenditures
D) none of these
E) Capital Valuation
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Business finance companies
B) Insurance companies
C) Sales finance companies
D) none of these
E) Personal finance companies
  • 19. The following are example of credit bureaus except:
A) Credit guides
B) none of these
C) Report
D) Bulletins
E) Special Services
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Prepaid expense
B) none of these
C) Deferred items
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) Open- book credit
B) Trade Acceptance
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) true
B) false
  • 23. PVCI means____________.
A) All of these
B) Discount value of the anticipated cash inflow
C) none of these
D) Discount value of the anticipated cash inflow and outflow
E) Discount value of the anticipated cash outflow
  • 24. Those share of stock without a face or nominal value.
A) none of these
B) Book Value of Stock
C) Market Value
D) Par Value
E) Non 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) Finance companies
B) Insurance companies
C) Commercial papers
D) All of these
E) none of these
  • 26. Refers to the ability of the applicant to operate successfully.
A) Capacity
B) Condition
C) Capital
D) Character
E) none of these
  • 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) All of these
C) none of these
D) Working Capital
E) Income statement
  • 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) Payback method
D) Discounted cash flow method
E) Average Return on Investment
  • 30. Refers to the total amount of current assets minus current liabilities.
A) Accounts receivable requirement
B) Total Capital
C) net working Capital
D) none of these
E) Cash management
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 5
B) 10
C) none of these
D) 7
E) 2
  • 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) none of these
B) P510
C) P830
D) P170
E) ALL OF THESE
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Warrant
B) Investment
C) Acquisition
D) none of these
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) TRUE
D) FALSE
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) none of these
D) raw materials
E) all of these
  • 37. current liabilities are debt that has to be paid________________.
A) in order to buy a current assets
B) in the next 12 months
C) to buy more working capital
D) in the next 5yrs or more
  • 38. Which of the following are example of sources of credit information?
A) none of these
B) Credit guides
C) Credit Bureaus
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 increase profits
C) To invest in new projects
D) none of these
E) To hire new employees
  • 40. The classes of Capital Expenditures may be classified into________.
A) 6
B) 5
C) none of these
D) 10
E) 8
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) Initial Investment
B) Other investment
C) All of these
D) Later investment
E) none of these
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Risk Involved
B) Credit
C) Repair
D) none of these
E) Urgency
  • 43. Commercial banks offer short-term loans which are either_________.
A) Secured
B) Unsecured
C) Both Secured and Unsecured
D) neither Secured Nor Unsecured
E) none of these
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) Common Stock
B) All of these
C) none of these
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) No DISCOUNT
D) P9,922,500
E) P5,775
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Personal Interview
B) none of these
C) Credit Bureaus
D) References
E) Bank
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) Replacement investment
B) none of these
C) Strategic investment
D) New market investment
E) Expansion 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) none of these
C) All of these
D) FALSE
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) Long-term financing
B) All of these
C) none of these
D) Intermediate-term financing
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) none of these
B) Character
C) Capacity
D) Capital
E) Condition
  • 52. Why is working capital important?
A) It indicates the profitability of a company
B) It shows the market capitalization of a company
C) It indicates the solvency of a company
D) none of these
E) It shows the liquidity 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) P700
B) NONE OF THESE
C) P1,750
D) ALL OF THESE
E) P750
  • 54. the capital requirement of the firm may be classified into three, except:
A) none of these
B) Medium - term
C) All of these
D) Long-term
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
B) Inventory Investment
C) Inventory Management
D) All of these
E) none of these
  • 56. The following are example of stock financing advantages, which is/are not?
A) All of these
B) Stock issuance does not require collaterals
C) none of these
D) Stock are not interesting bearing
E) It does not burden the company with redeeming the stock at given date
  • 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) P42,750
B) ALL OF THESE
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) P18,825
C) P150,650
D) ALL OF THESE
E) P106,675
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Cash Planning
B) Establishing Priorities
C) Revising Plans
D) none of these
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) none of these
E) Replacement investment
  • 61. Refers to credit flowing from a large business to small business.
A) All of these
B) none of these
C) Interbusiness credit financing
D) Inter business credit
E) Interbusiness 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) NONE OF THESE
B) P510
C) P830
D) P170
E) ALL OF THESE
  • 63. Common stock financing has certain advantages which one is not?
A) There is no fixed maturity date attached to common stock financing
B) none of these
C) All of these
D) It does not entail fixed charges
E) There are times when common stock is easier to sell then debt.
  • 64. Which of the following are not example of class of Capital Expenditures?
A) none of these
B) Replacement investment
C) Expansion investment
D) Strategics investment
E) Environment Project
  • 65. It is a sources of long-term capital.
A) Capital stock
B) Stock Financing
C) none of these
D) Treasury Stock
E) Common stock
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