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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) Par Value
B) Market Value
C) none of these
D) Non Par Value
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) All of these
B) none of these
C) Solvency
D) Profitability
E) Liquidity
  • 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) They are easier to obtain
E) Short-term financing offer flexibility to the borrower
  • 6. It is a right given by the corporation to an individual allowing him.
A) Acquisition
B) Stock Splits
C) none of these
D) Stock dividends
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) ALL OF THESE
B) NONE OF THESE
C) P18,825
D) P150,650
E) P106,675
  • 8. Consist of more specialized forms of credit bureaus.
A) References
B) Credit Bureaus
C) Credit reporting agencies
D) Bank
E) none of these
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) Administrative cost
B) All of these
C) Cost of invested funds
D) Bad debt cost
E) none of these
  • 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) All of these
D) none of these
E) Open-book credit
  • 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) P87,500
C) P120,500
D) P120,454.50
E) ALL OF THESE
  • 12. The stated value in the shares of corporation stock is called
A) Book Value of Stock
B) Market Value
C) Par 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) Commercial credit
B) none of these
C) Accounts receivable
D) All of these
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) none of these
B) P5,775
C) P9,922,500
D) all of these
E) P99,225
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Stock split
B) Stock option
C) Stock dividends
D) Acquisition
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) none of these
B) P750
C) P1,750
D) P700
E) ALL OF THESE
  • 17. The planning and control expenditures is referred to as______.
A) none of these
B) Capital expenditures
C) All of these
D) Capital budgeting
E) Capital Valuation
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Business finance companies
B) none of these
C) Personal finance companies
D) Insurance companies
E) Sales finance companies
  • 19. The following are example of credit bureaus except:
A) Credit guides
B) Special Services
C) none of these
D) Bulletins
E) Report
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Deferred items
B) Unearned Revenue
C) Prepaid expense
D) none of these
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) Trade Acceptance
B) none of these
C) Promissory note
D) Open- book credit
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 outflow
B) All of these
C) Discount value of the anticipated cash inflow
D) none of these
E) Discount value of the anticipated cash inflow and outflow
  • 24. Those share of stock without a face or nominal value.
A) Book Value of Stock
B) Market Value
C) Non Par Value
D) none of these
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) All of these
B) Finance companies
C) Insurance companies
D) none of these
E) Commercial papers
  • 26. Refers to the ability of the applicant to operate successfully.
A) Condition
B) Capital
C) Capacity
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) Working Capital
B) none of these
C) All of these
D) Income statement
E) Balance sheet
  • 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) Average Return on Investment
D) Discounted cash flow method
E) Payback method
  • 30. Refers to the total amount of current assets minus current liabilities.
A) Accounts receivable requirement
B) Cash management
C) Total Capital
D) net working Capital
E) none of these
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 2
B) 5
C) 10
D) none of these
E) 7
  • 32. What is the difference between a cash surplus and a cash deficit?
A) A cash surplus occurs when a business has no cash, while a cash deficit occurs when a business has some cash.
B) none 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 more cash than it needs, while a cash deficit occurs when a business has less 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) P830
C) ALL OF THESE
D) P170
E) P510
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Warrant
B) Acquisition
C) Convertible Securities
D) Investment
E) none of these
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) All of these
B) none of these
C) TRUE
D) Both True and False
E) 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) unfinished products being manufactured
D) all of these
E) none of these
  • 37. current liabilities are debt that has to be paid________________.
A) in the next 12 months
B) in the next 5yrs or more
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) Reference
B) Credit Bureaus
C) none of these
D) Personal Interview
E) Credit guides
  • 39. Which of the following is not a reason why businesses need cash?
A) To pay bills and expenses
B) To invest in new projects
C) To hire new employees
D) none of these
E) To increase profits
  • 40. The classes of Capital Expenditures may be classified into________.
A) 10
B) none of these
C) 8
D) 5
E) 6
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) Initial Investment
B) All of these
C) none of these
D) Later investment
E) Other investment
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Urgency
B) Risk Involved
C) none of these
D) Credit
E) Repair
  • 43. Commercial banks offer short-term loans which are either_________.
A) Secured
B) neither Secured Nor Unsecured
C) Both Secured and Unsecured
D) none of these
E) Unsecured
  • 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) Preferred Stock
D) Common 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) P5,775
C) P99,225
D) P9,922,500
E) No DISCOUNT
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Bank
B) References
C) Personal Interview
D) none of these
E) Credit Bureaus
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) none of these
B) New market investment
C) Strategic investment
D) Expansion investment
E) Replacement 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) FALSE
B) TRUE
C) none of these
D) All of these
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) none of these
C) All of these
D) Short-term financing
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) Capital
B) Condition
C) none of these
D) Character
E) Capacity
  • 52. Why is working capital important?
A) It shows the liquidity of a company
B) none of these
C) It shows the market capitalization of a company
D) It indicates the solvency 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) P700
B) NONE OF THESE
C) P750
D) ALL OF THESE
E) P1,750
  • 54. the capital requirement of the firm may be classified into three, except:
A) Medium - term
B) Short-term
C) All of these
D) Long-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) Inventory Management
B) Inventory
C) none of these
D) All of these
E) Inventory Investment
  • 56. The following are example of stock financing advantages, which is/are not?
A) Stock are not interesting bearing
B) Stock issuance does not require collaterals
C) It does not burden the company with redeeming the stock at given date
D) none of these
E) All 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) P42,750
B) P45,500
C) ALL OF THESE
D) none of these
E) P2,250
  • 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) Eliminating duplication
B) Establishing Priorities
C) Revising Plans
D) Cash Planning
E) none of these
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) Other Investment
B) none of these
C) Expansion investment
D) Replacement investment
E) New market investment
  • 61. Refers to credit flowing from a large business to small business.
A) All of these
B) Interbusiness Financing
C) Inter business credit
D) Interbusiness credit financing
E) none of these
  • 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) ALL OF THESE
B) NONE OF THESE
C) P510
D) P830
E) P170
  • 63. Common stock financing has certain advantages which one is not?
A) All of these
B) There are times when common stock is easier to sell then debt.
C) There is no fixed maturity date attached to common stock financing
D) none of these
E) It does not entail fixed charges
  • 64. Which of the following are not example of class of Capital Expenditures?
A) Expansion investment
B) none of these
C) Environment Project
D) Replacement investment
E) Strategics investment
  • 65. It is a sources of long-term capital.
A) Capital stock
B) none of these
C) Treasury Stock
D) Stock Financing
E) Common stock
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