elect01
  • 1. This details the requesting entity's justification for undertaking the proposal
A) none of these
B) All of these
C) Request and authority section
D) Narratives Section
E) Supporting Documentation 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) Book Value
B) Non Par 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) 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) All of these
C) Liquidity
D) Profitability
E) none 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 Splits
B) Stock option
C) none of these
D) Acquisition
E) Stock dividends
  • 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) P106,675
C) P150,650
D) ALL OF THESE
E) NONE OF THESE
  • 8. Consist of more specialized forms of credit bureaus.
A) Bank
B) Credit reporting agencies
C) none of these
D) References
E) Credit Bureaus
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) Administrative cost
B) All of these
C) Bad debt cost
D) none of these
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) Trade Acceptance
C) Open-book credit
D) none of these
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) NONE OF THESE
B) P120,500
C) P120,454.50
D) ALL OF THESE
E) P87,500
  • 12. The stated value in the shares of corporation stock is called
A) Book Value of Stock
B) Par Value
C) Market Value
D) Non Par Value
E) none of these
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) Mercantile credit
B) none of these
C) Accounts receivable
D) All of these
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) all of these
B) P99,225
C) P9,922,500
D) none of these
E) P5,775
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Acquisition
B) Stock split
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) 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 Valuation
C) none of these
D) Capital budgeting
E) All of these
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) none of these
B) Insurance companies
C) Business finance companies
D) Sales finance companies
E) Personal finance companies
  • 19. The following are example of credit bureaus except:
A) none of these
B) Special Services
C) Credit guides
D) Report
E) Bulletins
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Unearned Revenue
B) Deferred items
C) Supplies
D) none of these
E) Prepaid expense
  • 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) Promissory note
C) All of these
D) none of these
E) Open- book credit
  • 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
B) none of these
C) Discount value of the anticipated cash inflow and outflow
D) Discount value of the anticipated cash outflow
E) All of these
  • 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) Market Value
E) 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) Commercial papers
C) Insurance companies
D) none of these
E) All of these
  • 26. Refers to the ability of the applicant to operate successfully.
A) Capacity
B) Capital
C) Condition
D) none of these
E) Character
  • 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) Working Capital
C) none of these
D) All of these
E) Income statement
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) All of these
B) Payback method
C) none 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) Accounts receivable requirement
C) Cash management
D) Total Capital
E) none of these
  • 31. The objectives off the Capital Budgeting are classified into______.
A) none of these
B) 7
C) 5
D) 2
E) 10
  • 32. What is the difference between a cash surplus and a cash deficit?
A) All of these
B) none 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) 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) 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) P510
C) P170
D) ALL OF THESE
E) P830
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Investment
B) Acquisition
C) Warrant
D) none of these
E) Convertible Securities
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) All of these
B) Both True and False
C) none of these
D) TRUE
E) FALSE
  • 36. which of the following could be turned into cash the easiest or quickest?
A) all of these
B) none of these
C) unfinished products being manufactured
D) finished product sitting in a warehouse
E) raw materials
  • 37. current liabilities are debt that has to be paid________________.
A) to buy more working capital
B) in the next 12 months
C) in the next 5yrs or more
D) in order to buy a current assets
  • 38. Which of the following are example of sources of credit information?
A) Credit Bureaus
B) Reference
C) Personal Interview
D) Credit guides
E) none of these
  • 39. Which of the following is not a reason why businesses need cash?
A) To hire new employees
B) To increase profits
C) none of these
D) To pay bills and expenses
E) To invest in new projects
  • 40. The classes of Capital Expenditures may be classified into________.
A) 5
B) none of these
C) 10
D) 6
E) 8
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) Other investment
B) Later investment
C) All of these
D) Initial Investment
E) none of these
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Repair
B) none of these
C) Credit
D) Risk Involved
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) none of these
C) All of these
D) Deferred Stock
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) P5,775
B) P9,922,500
C) P99,225
D) No DISCOUNT
E) none of these
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Personal Interview
B) Bank
C) Credit Bureaus
D) none of these
E) References
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) none of these
B) Strategic investment
C) Expansion investment
D) Replacement 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) Both True and False
B) FALSE
C) none of these
D) TRUE
E) All of these
  • 50. Deals with the demand for and supply Short-term of funds which may either be secured or unsecured.
A) All of these
B) Short-term financing
C) Intermediate-term financing
D) none of these
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) Capital
B) Capacity
C) Condition
D) Character
E) none of these
  • 52. Why is working capital important?
A) It shows the liquidity of a company
B) none of these
C) It indicates the solvency 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) NONE OF THESE
B) P700
C) P1,750
D) ALL OF THESE
E) P750
  • 54. the capital requirement of the firm may be classified into three, except:
A) All of these
B) none of these
C) Long-term
D) Short-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) Inventory
B) All of these
C) none of these
D) Inventory Management
E) Inventory Investment
  • 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) none of these
C) Stock issuance does not require collaterals
D) All 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) none of these
B) P42,750
C) P45,500
D) P2,250
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) ALL OF THESE
C) P18,825
D) NONE OF THESE
E) P106,675
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Revising Plans
B) none of these
C) Cash Planning
D) Establishing Priorities
E) Eliminating duplication
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) Replacement investment
B) none of these
C) New market investment
D) Expansion investment
E) Other Investment
  • 61. Refers to credit flowing from a large business to small business.
A) Inter business credit
B) Interbusiness Financing
C) All of these
D) none of these
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) P170
C) ALL OF THESE
D) NONE OF THESE
E) P510
  • 63. Common stock financing has certain advantages which one is not?
A) All of these
B) It does not entail fixed charges
C) There are times when common stock is easier to sell then debt.
D) There is no fixed maturity date attached to common stock financing
E) none of these
  • 64. Which of the following are not example of class of Capital Expenditures?
A) Expansion investment
B) Environment Project
C) Replacement investment
D) none of these
E) Strategics investment
  • 65. It is a sources of long-term capital.
A) Common stock
B) none of these
C) Capital stock
D) Treasury Stock
E) Stock Financing
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