elect01
  • 1. This details the requesting entity's justification for undertaking the proposal
A) Narratives Section
B) none of these
C) Supporting Documentation Section
D) All of these
E) Request and authority 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) none of these
B) Book Value
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) Solvency
B) Profitability
C) none of these
D) Liquidity
E) All of these
  • 5. Which of the following are not example of advantages of short-term credit?
A) Short-term financing is often less costly
B) Short-term financing offer flexibility to the borrower
C) none of these
D) all of these
E) They are easier to obtain
  • 6. It is a right given by the corporation to an individual allowing him.
A) Stock dividends
B) Stock Splits
C) none of these
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) P150,650
B) P18,825
C) P106,675
D) NONE OF THESE
E) ALL OF THESE
  • 8. Consist of more specialized forms of credit bureaus.
A) none of these
B) Credit reporting agencies
C) References
D) Credit Bureaus
E) Bank
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) none of these
B) All of these
C) Administrative cost
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) Open-book credit
B) Promissory note
C) Trade Acceptance
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) P87,500
B) NONE OF THESE
C) P120,454.50
D) P120,500
E) ALL OF THESE
  • 12. The stated value in the shares of corporation stock is called
A) Market Value
B) Non Par Value
C) Book Value of Stock
D) none of these
E) Par Value
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) none of these
B) Mercantile credit
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) P5,775
B) all of these
C) none of these
D) P99,225
E) P9,922,500
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Stock split
B) none of these
C) Acquisition
D) Stock dividends
E) Stock option
  • 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) P1,750
C) none of these
D) ALL OF THESE
E) P750
  • 17. The planning and control expenditures is referred to as______.
A) Capital budgeting
B) All of these
C) Capital expenditures
D) Capital Valuation
E) none 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) Personal finance 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) Prepaid expense
B) Unearned Revenue
C) Supplies
D) Deferred items
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) Promissory note
B) All of these
C) Open- book credit
D) none of these
E) Trade Acceptance
  • 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) Discount value of the anticipated cash inflow and outflow
D) All of these
E) none of these
  • 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) Commercial papers
C) none of these
D) Finance companies
E) Insurance companies
  • 26. Refers to the ability of the applicant to operate successfully.
A) Condition
B) Capital
C) none of these
D) Capacity
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) Income statement
B) All of these
C) Balance sheet
D) none of these
E) Working Capital
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) Payback method
B) Discounted cash flow method
C) All of these
D) Average Return on Investment
E) none of these
  • 30. Refers to the total amount of current assets minus current liabilities.
A) none of these
B) Total Capital
C) net working Capital
D) Cash management
E) Accounts receivable requirement
  • 31. The objectives off the Capital Budgeting are classified into______.
A) none of these
B) 7
C) 5
D) 10
E) 2
  • 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) none of these
C) All of these
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 less cash than it needs, while a cash deficit occurs when a business has more 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) P510
B) P170
C) P830
D) none of these
E) ALL OF THESE
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Acquisition
B) Convertible Securities
C) Investment
D) Warrant
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) finished product sitting in a warehouse
B) unfinished products being manufactured
C) none of these
D) raw materials
E) all of these
  • 37. current liabilities are debt that has to be paid________________.
A) in the next 12 months
B) to buy more working capital
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) Personal Interview
B) none of these
C) Credit Bureaus
D) Credit guides
E) Reference
  • 39. Which of the following is not a reason why businesses need cash?
A) To hire new employees
B) To pay bills and expenses
C) none of these
D) To increase profits
E) To invest in new projects
  • 40. The classes of Capital Expenditures may be classified into________.
A) 6
B) none of these
C) 5
D) 8
E) 10
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) Other investment
B) none of these
C) Later investment
D) All of these
E) Initial Investment
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Risk Involved
B) Credit
C) Urgency
D) Repair
E) none of these
  • 43. Commercial banks offer short-term loans which are either_________.
A) Unsecured
B) neither Secured Nor Unsecured
C) Secured
D) none of these
E) Both Secured and Unsecured
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) All of these
B) Deferred Stock
C) Preferred Stock
D) none 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) P5,775
B) No DISCOUNT
C) P99,225
D) none of these
E) P9,922,500
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Personal Interview
B) Credit Bureaus
C) Bank
D) References
E) none of these
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) Expansion investment
B) Strategic investment
C) New market investment
D) Replacement 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) Both True and False
C) none 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) none of these
B) All of these
C) Short-term financing
D) Long-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) Character
B) Capacity
C) none of these
D) Condition
E) Capital
  • 52. Why is working capital important?
A) none of these
B) It indicates the profitability of a company
C) It shows the liquidity of a company
D) It indicates the solvency of a company
E) It shows the market capitalization 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) ALL OF THESE
C) P1,750
D) P700
E) P750
  • 54. the capital requirement of the firm may be classified into three, except:
A) All of these
B) none 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 Management
B) Inventory Investment
C) Inventory
D) All of these
E) none of these
  • 56. The following are example of stock financing advantages, which is/are not?
A) none of these
B) Stock are not interesting bearing
C) All of these
D) Stock issuance does not require collaterals
E) It does not burden the company with redeeming the stock at given date
  • 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) P106,675
B) P18,825
C) NONE OF THESE
D) ALL OF THESE
E) P150,650
  • 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) New market investment
B) Expansion investment
C) Replacement investment
D) none of these
E) Other Investment
  • 61. Refers to credit flowing from a large business to small business.
A) Inter business credit
B) Interbusiness credit financing
C) none of these
D) All 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) P170
B) ALL OF THESE
C) P510
D) NONE OF THESE
E) P830
  • 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) Replacement investment
C) none of these
D) Strategics investment
E) Environment Project
  • 65. It is a sources of long-term capital.
A) Common stock
B) Stock Financing
C) Capital stock
D) none of these
E) Treasury Stock
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