B.FINANCE-ABM12FERNANDEZ 1STQRTR
  • 1. Which of the following is not an example of general loan application documents in nonbank financial institution?
A) Water bill
B) certificate of registration
C) Electric bill
D) Certificate of no pending case
  • 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) 6 months
C) 1 month
D) 4 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) Certificate of Employment
C) Signature of co-maker
D) Copy of passport
  • 4. Steven will apply for a loan in Palawan bank. What general document will he accomplish first?
A) Signature of spouse
B) Valid IDs
C) Daniel's signature
D) Loan application form
  • 5. Which loan requirements are submitted to support the loans secured from the banks?
A) Collateral Documents
B) General Loan Application Documents
C) Generic Loan Documents
D) Income Documents
  • 6. Which of the following is the collateral documents/s for owned vehicles required by nonbank financial institutions?
A) Official Receipt and Certificate of Registration
B) Transfer Certificate of Title
C) Ta declaration and Ta clearance
D) Copy of ownership
  • 7. These pertain to loan requirements that reflect the employment/business of the borrower.
A) General Loan Application Documents
B) Collateral Documents
C) Generic Loan Documents
D) Income 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 employment
B) Loan amount
C) Kind of business
D) Purpose of the loan
  • 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) Co-maker signature only
B) Borrower's signature only
C) Borrower and spouse's signature
D) Borrower and co-maker's signature
  • 11. Amon the following, who is tasked to analyze the financial track record of the borrower?
A) Loan officer
B) Credit Bureau
C) Credit analyst
D) Manager
  • 12. All are examples of income documents except fot:
A) Business/ Mayor’s Permit
B) Copy of Income Tax Return
C) Copy of Visa
D) Employment Certificate
  • 13. Which of the following is reflected in the credit rating of the borrower?
A) Credit balance
B) Both a and b
C) Credit history
D) Loanable amount
  • 14. All are needed loan requirements for business owners or self-employed
    individuals EXCEPT for:
A) Bank Statement
B) Certificate of Employment
C) Audited Financial Statements
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) Her ITR must be for the last 6 years
B) She must not submit the ITR
C) She must submit two copies if her ITR
D) Her ITR must be for the last 2 years
  • 16. What is budgeting?
A) Having money left over at the end of the month.
B) A plan made in advance regarding the expenditure of money based on available income.
C) Having enough money to buy something.
D) Having ability to pay bills on time.
  • 17. What is the purpose of a budget?
A) Helping spend wisely
B) Increasing income
C) Saving for future expenses
D) Estimating income and expenses
  • 18. What is/are the objective/s of Proforma Financial Statements?
A) All of the them
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) To give an idea of how the actual statement will look like.
  • 19. Financial planning is a process to ensure that ________________.
A) the cash flow of the company is positive.
B) the company is liquid and has paid all its investors’ dividends.
C) the resources are unlimited.
D) the company is solvent.
  • 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, macro, assignable, realistic, time-related
C) Specific, measurable, assignable, realistic, time-related
D) None of the above
  • 21. Primary and secondary markets are markets for short-term and
    long-term securities, respectively.
A) False
B) Maybe
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) True
C) Maybe
  • 23. Corporate owners receive realizable return through
A) earnings per share and cash dividends.
B) increase in share price and earnings per share.
C) profit and earnings per share.
D) increase in share price and cash dividends.
  • 24. The wealth of the owners of a corporation is represented by
A) profits.
B) cash flow
C) Shared value
D) earnings per share.
  • 25. By definition, the money market involves the buying and selling of
    ______.
A) short-term funds.
B) stocks and bonds.
C) funds that mature in more than one year.
D) flows of funds.
  • 26. Which of the following statements about budgeting is incorrect?
A) A budget is a financial plan.
B) A budget looks back and review performance.
C) Budgets provide direction and coordination.
D) Budgets motivate staff.
  • 27. Which of the following is normally prepared first?
A) Sales Budget
B) Production Budget
C) Cash Budget
D) None of the above
  • 28. What is a sales budget?
A) A plan of tracking an inventory and how much they sell
B) A plan of how much an item will cost.
C) A plan for how much money should be made in a given period
D) A plan of items to be sold.
  • 29. Why many small businesses do not use budget?
A) All of the above.
B) Budgeting is for large firms only
C) Small businesses do not record variances.
D) Budgeting can be time consuming.
  • 30. Which of the following is NOT a benefit of budgeting?
A) It is a source of motivation.
B) It is a means of coordinating business activities?
C) It prevents company to incur net losses.
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) credit union
B) savings bank
C) life insurance company
D) commercial bank
  • 32. The key participants in financial transactions are individuals, businesses,
    and governments. Individuals are net of funds, and businesses are net of
    funds.
A) suppliers; users
B) users; providers
C) purchasers; sellers
D) users; suppliers
  • 33. Wealth maximization as the goal of the firm implies enhancing the wealth of
A) the firm's employees
B) the firm's stockholders
C) the Board of Directors.
D) the federal government
  • 34. A is set up so that employees of corporations or governments can receive
    income after retirement.
A) savings bank
B) credit union
C) pension fund
D) life insurance company
  • 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) savings and loans
C) mutual fund
D) credit union
  • 36. Most businesses raise money by selling their securities in a.
A) a private placement.
B) a public offering.
C) a direct placement.
D) a stock exchange.
  • 37. Which of the following is not a service provided by financial institutions?
A) Paying savers’ interest on deposited funds
B) Lending money to customers
C) Investing customers’ savings in stocks and bonds
D) Buying the businesses of customers
  • 38. The goal of profit maximization would result in priority for
A) risk of the investment
B) timing of the returns
C) cash flows available to stockholders
D) earnings per share.
  • 39. Profit maximization, as a goal, is not ideal because it does NOT consider
A) EPS and stock price
B) cash flow and stock price.
C) risk and EPS.
D) risk and cash flow.
  • 40. What is the income earned on a stock?
A) Interest
B) Dividend
C) Deposit
D) Premium
  • 41. What do you call an owner of a company’s stocks?
A) Stockholder
B) Broker
C) Creditor
D) Bondholder
  • 42. What is the income earned on a bond?
A) Capital Gains
B) Interest
C) Dividends
D) Premium
  • 43. Which of the following is not an example of a deposit investment?
A) Time deposit
B) Savings
C) Current
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) 4,000
B) 6,000
C) 3,000
D) 7,000
  • 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) 6,500
C) 4,00
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) 4,000
C) 13,000
D) 7,500
  • 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) 71,500
B) 5,513
C) 423.07
D) none of them
  • 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) 6,015
B) 90,000
C) 9,500
D) 400
  • 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) 7,500
B) 112,000
C) 437.5
D) 7,016
  • 50. What is the formula for computing production budget?
A) None of the above
B) Planned Ending Inventory Units + Beginning Inventory in Units – Expected Sales in Units
C) Expected Sales in Units + Beginning Inventory in Units + Planned Ending Inventory Units
D) Expected Sales in Units + Planned Ending Inventory Units – Beginning Inventory in Units
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