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  • 1. This details the requesting entity's justification for undertaking the proposal
A) Request and authority section
B) All of these
C) Narratives Section
D) Supporting Documentation 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) Non Par Value
B) Book Value
C) Par Value
D) Market 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) Liquidity
B) none of these
C) Solvency
D) Profitability
E) All of these
  • 5. Which of the following are not example of advantages of short-term credit?
A) all of these
B) none 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 Splits
B) Stock dividends
C) Acquisition
D) Stock option
E) none of these
  • 7. date start: Mar. 22

    credit term: 15/15

    listed price: P125,500

    DATE PAID: April 5

    HOW MUCH THE DISCOUNT?
A) P106,675
B) P18,825
C) NONE OF THESE
D) ALL OF THESE
E) P150,650
  • 8. Consist of more specialized forms of credit bureaus.
A) Bank
B) References
C) Credit reporting agencies
D) Credit Bureaus
E) none of these
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) Administrative cost
B) All of these
C) none of these
D) Bad debt cost
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) All of these
C) none of these
D) Open-book credit
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) NONE OF THESE
B) P120,500
C) ALL OF THESE
D) P87,500
E) P120,454.50
  • 12. The stated value in the shares of corporation stock is called
A) Book Value of Stock
B) Par Value
C) Non Par Value
D) Market Value
E) none of these
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) Accounts receivable
B) none of these
C) Commercial credit
D) Mercantile 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) P99,225
B) P9,922,500
C) all of these
D) none of these
E) P5,775
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) none of these
B) Acquisition
C) Stock option
D) Stock dividends
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) ALL OF THESE
B) none of these
C) P750
D) P1,750
E) P700
  • 17. The planning and control expenditures is referred to as______.
A) Capital budgeting
B) Capital Valuation
C) none of these
D) Capital expenditures
E) All of these
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Personal finance companies
B) Sales finance companies
C) Insurance companies
D) Business finance companies
E) none of these
  • 19. The following are example of credit bureaus except:
A) Bulletins
B) Special Services
C) Credit guides
D) Report
E) none of these
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Deferred items
B) Unearned Revenue
C) Prepaid expense
D) Supplies
E) none of these
  • 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) none of these
C) Open- book credit
D) Promissory note
E) All of these
  • 22. sufficient working capital is needed to prevent a business from becoming insolvent.
A) true
B) false
  • 23. PVCI means____________.
A) Discount value of the anticipated cash inflow
B) Discount value of the anticipated cash outflow
C) none of these
D) Discount value of the anticipated cash inflow and outflow
E) All of these
  • 24. Those share of stock without a face or nominal value.
A) Market Value
B) none of these
C) Par Value
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) Insurance companies
B) Commercial papers
C) none of these
D) All of these
E) Finance companies
  • 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) none of these
B) Balance sheet
C) Income statement
D) All 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) Discounted cash flow method
C) Payback method
D) All of these
E) Average Return on Investment
  • 30. Refers to the total amount of current assets minus current liabilities.
A) none of these
B) Cash management
C) Accounts receivable requirement
D) Total Capital
E) net working Capital
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 10
B) none of these
C) 2
D) 5
E) 7
  • 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 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) P830
B) none of these
C) ALL OF THESE
D) P510
E) P170
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Convertible Securities
B) Acquisition
C) none of these
D) Warrant
E) Investment
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) All of these
B) FALSE
C) none of these
D) TRUE
E) Both True and False
  • 36. which of the following could be turned into cash the easiest or quickest?
A) raw materials
B) finished product sitting in a warehouse
C) all of these
D) none of these
E) unfinished products being manufactured
  • 37. current liabilities are debt that has to be paid________________.
A) to buy more working capital
B) in the next 12 months
C) in order to buy a current assets
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) Personal Interview
D) Credit Bureaus
E) Reference
  • 39. Which of the following is not a reason why businesses need cash?
A) To increase profits
B) none of these
C) To hire new employees
D) To invest in new projects
E) To pay bills and expenses
  • 40. The classes of Capital Expenditures may be classified into________.
A) 8
B) 10
C) 5
D) none of these
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) Other investment
C) Initial Investment
D) none of these
E) All of these
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Urgency
B) Credit
C) Repair
D) Risk Involved
E) none of these
  • 43. Commercial banks offer short-term loans which are either_________.
A) Secured
B) neither Secured Nor Unsecured
C) Unsecured
D) Both Secured and Unsecured
E) none of these
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) All of these
B) none of these
C) Common Stock
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) none of these
B) No DISCOUNT
C) P9,922,500
D) P99,225
E) P5,775
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Credit Bureaus
B) References
C) Bank
D) Personal Interview
E) none of these
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) Strategic investment
B) New market investment
C) Replacement investment
D) Expansion investment
E) none of these
  • 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) FALSE
B) none of these
C) Both True and False
D) All of these
E) TRUE
  • 50. Deals with the demand for and supply Short-term of funds which may either be secured or unsecured.
A) Long-term financing
B) Short-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) Capacity
C) Capital
D) none of these
E) Character
  • 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 shows the liquidity of a company
D) none of these
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) P750
C) P1,750
D) ALL OF THESE
E) NONE OF THESE
  • 54. the capital requirement of the firm may be classified into three, except:
A) Short-term
B) none of these
C) Medium - term
D) All of these
E) Long-term
  • 55. Refers to the activity that keep track of how many of the procured items needed to create a product.
A) All of these
B) Inventory Investment
C) Inventory Management
D) none of these
E) Inventory
  • 56. The following are example of stock financing advantages, which is/are not?
A) none of these
B) It does not burden the company with redeeming the stock at given date
C) All of these
D) Stock are not interesting bearing
E) Stock issuance does not require collaterals
  • 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) none of these
C) P2,250
D) P45,500
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) P106,675
B) P150,650
C) NONE OF THESE
D) P18,825
E) ALL OF THESE
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Establishing Priorities
B) Revising Plans
C) Cash Planning
D) Eliminating duplication
E) none of these
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) Other Investment
B) none of these
C) New market investment
D) Expansion investment
E) Replacement investment
  • 61. Refers to credit flowing from a large business to small business.
A) Inter business credit
B) Interbusiness credit financing
C) All of these
D) none of these
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) P510
B) P170
C) ALL OF THESE
D) NONE OF THESE
E) P830
  • 63. Common stock financing has certain advantages which one is not?
A) none of these
B) There is no fixed maturity date attached to common stock financing
C) All of these
D) There are times when common stock is easier to sell then debt.
E) It does not entail fixed charges
  • 64. Which of the following are not example of class of Capital Expenditures?
A) Strategics investment
B) none of these
C) Environment Project
D) Expansion investment
E) Replacement investment
  • 65. It is a sources of long-term capital.
A) Stock Financing
B) none of these
C) Capital stock
D) Common stock
E) Treasury Stock
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