B.FINANCE-ABM12FERNANDEZ 1STQRTR
  • 1. Which of the following is not an example of general loan application documents in nonbank financial institution?
A) Certificate of no pending case
B) certificate of registration
C) Electric bill
D) Water bill
  • 2. To accomplish one of the income documents, a borrower may present a copy of payslip reflecting how many month/s?
A) 3 months
B) 4 months
C) 1 month
D) 6 months
  • 3. In nonbank financial institutions general loan application documents, which of the following can be represented by an OFW borrower?
A) Business permit
B) Copy of passport
C) Certificate of Employment
D) Signature of co-maker
  • 4. Steven will apply for a loan in Palawan bank. What general document will he accomplish first?
A) Signature of spouse
B) Loan application form
C) Daniel's signature
D) Valid IDs
  • 5. Which loan requirements are submitted to support the loans secured from the banks?
A) Income Documents
B) Collateral Documents
C) Generic Loan Documents
D) General Loan Application Documents
  • 6. Which of the following is the collateral documents/s for owned vehicles required by nonbank financial institutions?
A) Transfer Certificate of Title
B) Copy of ownership
C) Official Receipt and Certificate of Registration
D) Ta declaration and Ta clearance
  • 7. These pertain to loan requirements that reflect the employment/business of the borrower.
A) Income Documents
B) Generic Loan Documents
C) Collateral Documents
D) General Loan Application Documents
  • 8. Which of the following is mandated by the Banko Sentral ng Pilipinas to be clearly stated in the loan application and contract?
A) Kind of business
B) Loan amount
C) Purpose of the loan
D) Kind of employment
  • 9. Which of the following is not a reason for financial institutions to demand for loan requirements?
A) To verify the identity of the borrower
B) To gain linkages with suppliers and customers
C) To evaluate credit ratings
D) To assess the financial capability of the borrower
  • 10. When the borrower is married, which of the following signature/s should not be missed when filling-out the general loan application documents?
A) Borrower's signature only
B) Borrower and spouse's signature
C) Co-maker signature only
D) Borrower and co-maker's signature
  • 11. Amon the following, who is tasked to analyze the financial track record of the borrower?
A) Credit Bureau
B) Credit analyst
C) Loan officer
D) Manager
  • 12. All are examples of income documents except fot:
A) Employment Certificate
B) Copy of Income Tax Return
C) Business/ Mayor’s Permit
D) Copy of Visa
  • 13. Which of the following is reflected in the credit rating of the borrower?
A) Credit history
B) Credit balance
C) Loanable amount
D) Both a and b
  • 14. All are needed loan requirements for business owners or self-employed
    individuals EXCEPT for:
A) Certificate of Employment
B) Audited Financial Statements
C) Bank Statement
D) Business/ Mayor’s Permit
  • 15. Jessica, a self-employed individual applied for a loan in a bank. One of the
    documents she submitted is a copy of her Income Tax Return for one year. The
    bank declined her application. Why do you think so?
A) She must submit two copies if her ITR
B) She must not submit the ITR
C) Her ITR must be for the last 2 years
D) Her ITR must be for the last 6 years
  • 16. What is budgeting?
A) Having ability to pay bills on time.
B) Having enough money to buy something.
C) A plan made in advance regarding the expenditure of money based on available income.
D) Having money left over at the end of the month.
  • 17. What is the purpose of a budget?
A) Estimating income and expenses
B) Helping spend wisely
C) Increasing income
D) Saving for future expenses
  • 18. What is/are the objective/s of Proforma Financial Statements?
A) To give an idea of how the actual statement will look like.
B) It helps you get financed because the lenders or investors will see how you would use their money to grow your business.
C) To facilitate comparisons of historic data and projections of future Performance.
D) All of the them
  • 19. Financial planning is a process to ensure that ________________.
A) the company is liquid and has paid all its investors’ dividends.
B) the cash flow of the company is positive.
C) the company is solvent.
D) the resources are unlimited.
  • 20. A plan to be effective should be created using S.M.A.R.T. philosophy.
    What do S.M.A.R.T. mean?
A) Smart, measurable, assignable, realistic, time-related
B) Specific, measurable, assignable, realistic, time-related
C) None of the above
D) Specific, macro, assignable, realistic, time-related
  • 21. Primary and secondary markets are markets for short-term and
    long-term securities, respectively.
A) Maybe
B) False
C) True
  • 22. The money market involves trading of securities with
    maturities of one year or less while the capital market
    involves the buying and selling of securities with maturities of
    more than one year.
A) False
B) Maybe
C) True
  • 23. Corporate owners receive realizable return through
A) earnings per share and cash dividends.
B) increase in share price and earnings per share.
C) increase in share price and cash dividends.
D) profit and earnings per share.
  • 24. The wealth of the owners of a corporation is represented by
A) profits.
B) earnings per share.
C) Shared value
D) cash flow
  • 25. By definition, the money market involves the buying and selling of
    ______.
A) flows of funds.
B) funds that mature in more than one year.
C) short-term funds.
D) stocks and bonds.
  • 26. Which of the following statements about budgeting is incorrect?
A) Budgets motivate staff.
B) A budget looks back and review performance.
C) Budgets provide direction and coordination.
D) A budget is a financial plan.
  • 27. Which of the following is normally prepared first?
A) None of the above
B) Cash Budget
C) Production Budget
D) Sales Budget
  • 28. What is a sales budget?
A) A plan of items to be sold.
B) A plan for how much money should be made in a given period
C) A plan of how much an item will cost.
D) A plan of tracking an inventory and how much they sell
  • 29. Why many small businesses do not use budget?
A) Budgeting is for large firms only
B) Budgeting can be time consuming.
C) All of the above.
D) Small businesses do not record variances.
  • 30. Which of the following is NOT a benefit of budgeting?
A) It prevents company to incur net losses.
B) It is a means of coordinating business activities?
C) It is a source of motivation.
D) It promotes study, research, and focus on the future.
  • 31. A ______________________is one financial intermediary handling individual
    savings and receives premium payments that are placed in loans.
A) commercial bank
B) life insurance company
C) savings bank
D) credit union
  • 32. The key participants in financial transactions are individuals, businesses,
    and governments. Individuals are net of funds, and businesses are net of
    funds.
A) users; providers
B) purchasers; sellers
C) users; suppliers
D) suppliers; users
  • 33. Wealth maximization as the goal of the firm implies enhancing the wealth of
A) the federal government
B) the firm's stockholders
C) the firm's employees
D) the Board of Directors.
  • 34. A is set up so that employees of corporations or governments can receive
    income after retirement.
A) credit union
B) pension fund
C) life insurance company
D) savings bank
  • 35. A is a type of financial intermediary that pools savings of individuals and
    makes them available to business and government users. Funds are
    obtained through the sale of shares.
A) savings bank
B) mutual fund
C) savings and loans
D) credit union
  • 36. Most businesses raise money by selling their securities in a.
A) a stock exchange.
B) a public offering.
C) a direct placement.
D) a private placement.
  • 37. Which of the following is not a service provided by financial institutions?
A) Buying the businesses of customers
B) Investing customers’ savings in stocks and bonds
C) Lending money to customers
D) Paying savers’ interest on deposited funds
  • 38. The goal of profit maximization would result in priority for
A) risk of the investment
B) earnings per share.
C) cash flows available to stockholders
D) timing of the returns
  • 39. Profit maximization, as a goal, is not ideal because it does NOT consider
A) risk and cash flow.
B) cash flow and stock price.
C) risk and EPS.
D) EPS and stock price
  • 40. What is the income earned on a stock?
A) Dividend
B) Premium
C) Deposit
D) Interest
  • 41. What do you call an owner of a company’s stocks?
A) Creditor
B) Bondholder
C) Stockholder
D) Broker
  • 42. What is the income earned on a bond?
A) Dividends
B) Capital Gains
C) Interest
D) Premium
  • 43. Which of the following is not an example of a deposit investment?
A) Current
B) Savings
C) Time deposit
D) Mutual funds
  • 44. Get the production budget of the X company using the given data.
    year 1 year 2 year 3
    Sales 5,000 7,000 14,000
    Beg. Inventory 2,000 2,500 4,000
    Ending Inventory 1,000 2,000 3,000

    What is the Production budget for year 1?
A) 7,000
B) 4,000
C) 6,000
D) 3,000
  • 45. Get the production budget of the X company using the given data.
    year 1 year 2 year 3
    Sales 5,000 7,000 14,000
    Beg. Inventory 2,000 2,500 4,000
    Ending Inventory 1,000 2,000 3,000

    What is the Production budget for year 2?
A) 7,00
B) 4,00
C) 6,500
D) 7,500
  • 46. Get the production budget of the X company using the given data.
    year 1 year 2 year 3
    Sales 5,000 7,000 14,000
    Beg. Inventory 2,000 2,500 4,000
    Ending Inventory 1,000 2,000 3,000

    What is the Production budget for year 3?
A) 14,000
B) 13,000
C) 7,500
D) 4,000
  • 47. Compute for the sales budget of the Y company using the given data.
    Qtr1 Qtr2 Qtr3
    Forcasted u/sales 5,500 6,000 7,000
    Price /unit 13 15 16
    Total Gross Sales ? ? ?
    What is the Total gross sales for Qtr1?
A) none of them
B) 423.07
C) 71,500
D) 5,513
  • 48. Compute for the sales budget of the Y company using the given data.
    Qtr1 Qtr2 Qtr3
    Forcasted u/sales 5,500 6,000 7,000
    Price /unit 13 15 16
    Total Gross Sales ? ? ?
    What is the Total gross sales for Qtr2?
A) 90,000
B) 6,015
C) 400
D) 9,500
  • 49. Compute for the sales budget of the Y company using the given data.
    Qtr1 Qtr2 Qtr3
    Forcasted u/sales 5,500 6,000 7,000
    Price /unit 13 15 16
    Total Gross Sales ? ? ?
    What is the Total gross sales for Qtr3?
A) 437.5
B) 7,016
C) 112,000
D) 7,500
  • 50. What is the formula for computing production budget?
A) Expected Sales in Units + Beginning Inventory in Units + Planned Ending Inventory Units
B) Planned Ending Inventory Units + Beginning Inventory in Units – Expected Sales in Units
C) Expected Sales in Units + Planned Ending Inventory Units – Beginning Inventory in Units
D) None of the above
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