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  • 1. This details the requesting entity's justification for undertaking the proposal
A) Supporting Documentation Section
B) Request and authority section
C) All of these
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) Book Value
B) Non Par Value
C) Market Value
D) Par Value
E) none of these
  • 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) All of these
D) Liquidity
E) Profitability
  • 5. Which of the following are not example of advantages of short-term credit?
A) none of these
B) all of these
C) Short-term financing is often less costly
D) Short-term financing offer flexibility to the borrower
E) They are easier to obtain
  • 6. It is a right given by the corporation to an individual allowing him.
A) Stock option
B) Stock dividends
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) P150,650
B) P106,675
C) ALL OF THESE
D) P18,825
E) NONE OF THESE
  • 8. Consist of more specialized forms of credit bureaus.
A) Bank
B) Credit Bureaus
C) none of these
D) Credit reporting agencies
E) References
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) All of these
B) Administrative cost
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) Open-book credit
B) All of these
C) Trade Acceptance
D) none of these
E) Promissory note
  • 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) ALL OF THESE
C) P120,500
D) P120,454.50
E) NONE 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) 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) Commercial credit
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) all of these
B) P99,225
C) none of these
D) P9,922,500
E) P5,775
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) none of these
B) Stock dividends
C) Acquisition
D) Stock option
E) Stock split
  • 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) ALL OF THESE
C) P750
D) P700
E) P1,750
  • 17. The planning and control expenditures is referred to as______.
A) All of these
B) none of these
C) Capital Valuation
D) Capital expenditures
E) Capital budgeting
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Insurance companies
B) none of these
C) Sales finance companies
D) Personal finance companies
E) Business finance companies
  • 19. The following are example of credit bureaus except:
A) Bulletins
B) Credit guides
C) Report
D) Special Services
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) Promissory note
E) All of these
  • 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) Discount value of the anticipated cash outflow
C) none of these
D) All of these
E) Discount value of the anticipated cash inflow
  • 24. Those share of stock without a face or nominal value.
A) Par Value
B) Market Value
C) none of these
D) Non Par Value
E) Book Value of Stock
  • 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) Insurance companies
C) none of these
D) Finance companies
E) Commercial papers
  • 26. Refers to the ability of the applicant to operate successfully.
A) Condition
B) Character
C) Capacity
D) Capital
E) none of these
  • 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) Working Capital
C) none of these
D) All of these
E) Balance sheet
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) Average Return on Investment
B) All of these
C) none of these
D) Payback method
E) Discounted cash flow method
  • 30. Refers to the total amount of current assets minus current liabilities.
A) Total Capital
B) none of these
C) Cash management
D) Accounts receivable requirement
E) net working Capital
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 5
B) 7
C) 2
D) none of these
E) 10
  • 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 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) none of these
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) P830
B) ALL OF THESE
C) P510
D) P170
E) none of these
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) none of these
B) Investment
C) Warrant
D) Acquisition
E) Convertible Securities
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) TRUE
B) FALSE
C) All of these
D) none of these
E) Both True and False
  • 36. which of the following could be turned into cash the easiest or quickest?
A) raw materials
B) none of these
C) unfinished products being manufactured
D) all of these
E) finished product sitting in a warehouse
  • 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 the next 12 months
D) in order to buy a current assets
  • 38. Which of the following are example of sources of credit information?
A) Personal Interview
B) Credit Bureaus
C) Credit guides
D) none of these
E) Reference
  • 39. Which of the following is not a reason why businesses need cash?
A) To pay bills and expenses
B) none of these
C) To invest in new projects
D) To increase profits
E) To hire new employees
  • 40. The classes of Capital Expenditures may be classified into________.
A) none of these
B) 8
C) 5
D) 10
E) 6
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) Later investment
B) Initial Investment
C) none of these
D) All of these
E) Other investment
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Risk Involved
B) Urgency
C) none of these
D) Credit
E) Repair
  • 43. Commercial banks offer short-term loans which are either_________.
A) none of these
B) Secured
C) Both Secured and Unsecured
D) Unsecured
E) neither Secured Nor Unsecured
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) Preferred Stock
B) All of these
C) Common Stock
D) Deferred 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) P9,922,500
B) P5,775
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) Credit Bureaus
B) Bank
C) none of these
D) References
E) Personal Interview
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) New market investment
B) Expansion investment
C) Replacement investment
D) Strategic investment
E) none of these
  • 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) All of these
B) none of these
C) FALSE
D) TRUE
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) Short-term financing
B) Long-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) Condition
B) Capital
C) Capacity
D) Character
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) none of these
D) It shows the market capitalization 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) P700
B) NONE OF THESE
C) ALL OF THESE
D) P1,750
E) P750
  • 54. the capital requirement of the firm may be classified into three, except:
A) none of these
B) All of these
C) Short-term
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) Inventory
B) All of these
C) Inventory Management
D) none of these
E) Inventory Investment
  • 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) All of these
D) none 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) P2,250
B) P42,750
C) none of these
D) ALL 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) ALL OF THESE
B) P18,825
C) P106,675
D) NONE OF THESE
E) P150,650
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Eliminating duplication
B) none of these
C) Revising Plans
D) Establishing Priorities
E) Cash Planning
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) Other Investment
B) none of these
C) New market investment
D) Replacement investment
E) Expansion investment
  • 61. Refers to credit flowing from a large business to small business.
A) none of these
B) All of these
C) Interbusiness Financing
D) Inter business credit
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) P510
B) NONE OF THESE
C) P170
D) P830
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) All of these
C) It does not entail fixed charges
D) There are times when common stock is easier to sell then debt.
E) none of these
  • 64. Which of the following are not example of class of Capital Expenditures?
A) Environment Project
B) Expansion investment
C) none of these
D) Replacement investment
E) Strategics investment
  • 65. It is a sources of long-term capital.
A) Capital stock
B) Treasury Stock
C) Stock Financing
D) none of these
E) Common stock
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