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  • 1. This details the requesting entity's justification for undertaking the proposal
A) Narratives Section
B) All of these
C) Supporting Documentation Section
D) Request and authority section
E) none 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) Book Value
B) none of these
C) Non Par Value
D) Par Value
E) Market 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) Liquidity
C) none of these
D) Solvency
E) All of these
  • 5. Which of the following are not example of advantages of short-term credit?
A) all of these
B) Short-term financing is often less costly
C) Short-term financing offer flexibility to the borrower
D) none of these
E) They are easier to obtain
  • 6. It is a right given by the corporation to an individual allowing him.
A) none of these
B) Stock Splits
C) Stock dividends
D) Acquisition
E) Stock option
  • 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) ALL OF THESE
C) P106,675
D) P18,825
E) P150,650
  • 8. Consist of more specialized forms of credit bureaus.
A) Credit reporting agencies
B) none of these
C) Bank
D) References
E) Credit Bureaus
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) All of these
B) Cost of invested funds
C) Administrative cost
D) none of these
E) Bad debt cost
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) Trade Acceptance
B) Promissory note
C) Open-book credit
D) All of these
E) none 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) P120,454.50
B) ALL OF THESE
C) P87,500
D) NONE OF THESE
E) P120,500
  • 12. The stated value in the shares of corporation stock is called
A) Book Value of Stock
B) none of these
C) Market Value
D) Non Par Value
E) Par Value
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) All of these
B) none of these
C) Accounts receivable
D) Commercial credit
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) P5,775
B) all of these
C) none of these
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) Stock dividends
C) Acquisition
D) Stock split
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) ALL OF THESE
B) P1,750
C) none of these
D) P700
E) P750
  • 17. The planning and control expenditures is referred to as______.
A) Capital Valuation
B) Capital budgeting
C) All of these
D) Capital expenditures
E) none of these
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Sales finance companies
B) Personal finance companies
C) none of these
D) Insurance companies
E) Business finance companies
  • 19. The following are example of credit bureaus except:
A) Bulletins
B) none of these
C) Report
D) Credit guides
E) Special Services
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Supplies
B) none of these
C) Unearned Revenue
D) Prepaid expense
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) Trade Acceptance
C) Open- book credit
D) Promissory note
E) none of these
  • 22. sufficient working capital is needed to prevent a business from becoming insolvent.
A) false
B) true
  • 23. PVCI means____________.
A) none of these
B) Discount value of the anticipated cash inflow and outflow
C) Discount value of the anticipated cash inflow
D) Discount value of the anticipated cash outflow
E) All of these
  • 24. Those share of stock without a face or nominal value.
A) Market Value
B) Book Value of Stock
C) none of these
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) All of these
B) none of these
C) Commercial papers
D) Finance companies
E) Insurance companies
  • 26. Refers to the ability of the applicant to operate successfully.
A) Capacity
B) none of these
C) Condition
D) Character
E) Capital
  • 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) All of these
D) none of these
E) Balance sheet
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) none of these
B) Payback method
C) Average Return on Investment
D) Discounted cash flow method
E) All of these
  • 30. Refers to the total amount of current assets minus current liabilities.
A) Total Capital
B) net working Capital
C) Cash management
D) Accounts receivable requirement
E) none of these
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 10
B) none of these
C) 5
D) 7
E) 2
  • 32. What is the difference between a cash surplus and a cash deficit?
A) none of these
B) All of these
C) 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.
D) A cash surplus occurs when a business has no cash, while a cash deficit occurs when a business has some cash.
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) P170
B) P510
C) ALL OF THESE
D) none of these
E) P830
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Convertible Securities
B) Investment
C) Acquisition
D) Warrant
E) none of these
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) TRUE
B) All of these
C) FALSE
D) none of these
E) Both True and 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) in the next 5yrs or more
B) in the next 12 months
C) to buy more working capital
D) in order to buy a current assets
  • 38. Which of the following are example of sources of credit information?
A) none of these
B) Credit guides
C) Reference
D) Credit Bureaus
E) Personal Interview
  • 39. Which of the following is not a reason why businesses need cash?
A) To pay bills and expenses
B) To hire new employees
C) none of these
D) To invest in new projects
E) To increase profits
  • 40. The classes of Capital Expenditures may be classified into________.
A) none of these
B) 10
C) 5
D) 8
E) 6
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) All of these
B) none of these
C) Initial Investment
D) Other investment
E) Later investment
  • 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) Both Secured and Unsecured
B) Secured
C) 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) Preferred Stock
B) none of these
C) Deferred Stock
D) All of these
E) Common 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) Personal Interview
B) none of these
C) Credit Bureaus
D) Bank
E) References
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) Expansion investment
B) none of these
C) New market investment
D) Replacement investment
E) Strategic 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) none of these
B) Both True and False
C) All of these
D) TRUE
E) 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) Capital
B) Character
C) Capacity
D) none of these
E) Condition
  • 52. Why is working capital important?
A) It shows the market capitalization of a company
B) It shows the liquidity of a company
C) It indicates the solvency of a company
D) It indicates the profitability 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) P1,750
D) NONE OF THESE
E) ALL OF THESE
  • 54. the capital requirement of the firm may be classified into three, except:
A) Medium - term
B) Long-term
C) All of these
D) Short-term
E) none of these
  • 55. Refers to the activity that keep track of how many of the procured items needed to create a product.
A) none of these
B) All of these
C) Inventory Management
D) Inventory
E) Inventory Investment
  • 56. The following are example of stock financing advantages, which is/are not?
A) All of these
B) It does not burden the company with redeeming the stock at given date
C) Stock are not interesting bearing
D) Stock issuance does not require collaterals
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) ALL OF THESE
B) P42,750
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) ALL OF THESE
B) P106,675
C) P150,650
D) NONE OF THESE
E) P18,825
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Revising Plans
B) Eliminating duplication
C) none of these
D) Establishing Priorities
E) Cash Planning
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) none of these
B) Expansion investment
C) New market investment
D) Replacement investment
E) Other Investment
  • 61. Refers to credit flowing from a large business to small business.
A) All of these
B) Interbusiness credit financing
C) Interbusiness Financing
D) none 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) P830
B) NONE OF THESE
C) ALL OF THESE
D) P170
E) P510
  • 63. Common stock financing has certain advantages which one is not?
A) There are times when common stock is easier to sell then debt.
B) All of these
C) none of these
D) It does not entail fixed charges
E) There is no fixed maturity date attached to common stock financing
  • 64. Which of the following are not example of class of Capital Expenditures?
A) none of these
B) Expansion investment
C) Replacement investment
D) Strategics investment
E) Environment Project
  • 65. It is a sources of long-term capital.
A) none of these
B) Stock Financing
C) Capital stock
D) Treasury Stock
E) Common stock
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