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elect01
Contributed by: Ann
  • 1. This details the requesting entity's justification for undertaking the proposal
A) Request and authority section
B) none of these
C) All of these
D) Supporting Documentation Section
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) Book Value
B) Par Value
C) none of these
D) Market Value
E) Non Par Value
  • 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) Solvency
C) none of these
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) They are easier to obtain
C) Short-term financing offer flexibility to the borrower
D) none of these
E) Short-term financing is often less costly
  • 6. It is a right given by the corporation to an individual allowing him.
A) Stock Splits
B) Stock option
C) none of these
D) Stock dividends
E) Acquisition
  • 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) NONE OF THESE
C) P18,825
D) P150,650
E) ALL OF THESE
  • 8. Consist of more specialized forms of credit bureaus.
A) Credit Bureaus
B) Bank
C) none of these
D) Credit reporting agencies
E) References
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) Administrative cost
B) Cost of invested funds
C) All of these
D) none of these
E) Bad debt cost
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) Trade Acceptance
B) Open-book credit
C) All of these
D) Promissory note
E) none 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) P120,500
B) NONE OF THESE
C) P120,454.50
D) ALL OF THESE
E) P87,500
  • 12. The stated value in the shares of corporation stock is called
A) Book Value of Stock
B) Non Par Value
C) Market Value
D) Par Value
E) none of these
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) none of these
B) Commercial credit
C) Mercantile credit
D) Accounts receivable
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) P99,225
C) P9,922,500
D) all of these
E) none of these
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) none of these
B) Stock option
C) Acquisition
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) P700
C) none of these
D) P750
E) P1,750
  • 17. The planning and control expenditures is referred to as______.
A) none of these
B) Capital budgeting
C) All of these
D) Capital expenditures
E) Capital Valuation
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) none of these
B) Sales finance companies
C) Business finance companies
D) Insurance companies
E) Personal finance companies
  • 19. The following are example of credit bureaus except:
A) Bulletins
B) Report
C) Credit guides
D) none of these
E) Special Services
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Supplies
B) none of these
C) Prepaid expense
D) Unearned Revenue
E) Deferred items
  • 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) All of these
C) none of these
D) Open- book credit
E) Promissory note
  • 22. sufficient working capital is needed to prevent a business from becoming insolvent.
A) false
B) true
  • 23. PVCI means____________.
A) All of these
B) Discount value of the anticipated cash outflow
C) none of these
D) Discount value of the anticipated cash inflow and outflow
E) Discount value of the anticipated cash inflow
  • 24. Those share of stock without a face or nominal value.
A) Market Value
B) Book Value of Stock
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) Commercial papers
B) Insurance companies
C) Finance companies
D) All of these
E) none of these
  • 26. Refers to the ability of the applicant to operate successfully.
A) Character
B) Capacity
C) Condition
D) Capital
E) none of these
  • 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) Balance sheet
B) All of these
C) none of these
D) Income statement
E) Working Capital
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) none of these
B) Payback method
C) Discounted cash flow method
D) All of these
E) Average Return on Investment
  • 30. Refers to the total amount of current assets minus current liabilities.
A) net working Capital
B) Total Capital
C) Accounts receivable requirement
D) none of these
E) Cash management
  • 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) All 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) none of these
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) P170
C) none of these
D) P510
E) ALL OF THESE
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Convertible Securities
B) none of these
C) Acquisition
D) Investment
E) Warrant
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) FALSE
B) TRUE
C) none of these
D) All of these
E) Both True and False
  • 36. which of the following could be turned into cash the easiest or quickest?
A) none of these
B) unfinished products being manufactured
C) raw materials
D) all of these
E) finished product sitting in a warehouse
  • 37. current liabilities are debt that has to be paid________________.
A) to buy more working capital
B) in the next 5yrs or more
C) in the next 12 months
D) in order to buy a current assets
  • 38. Which of the following are example of sources of credit information?
A) Credit guides
B) none of these
C) Credit Bureaus
D) Personal Interview
E) Reference
  • 39. Which of the following is not a reason why businesses need cash?
A) To invest in new projects
B) To increase profits
C) none of these
D) To pay bills and expenses
E) To hire new employees
  • 40. The classes of Capital Expenditures may be classified into________.
A) none of these
B) 8
C) 10
D) 5
E) 6
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) All of these
B) Other investment
C) Later investment
D) Initial Investment
E) none of these
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Risk Involved
B) none of these
C) Repair
D) Credit
E) Urgency
  • 43. Commercial banks offer short-term loans which are either_________.
A) Both Secured and Unsecured
B) none of these
C) neither Secured Nor Unsecured
D) Unsecured
E) Secured
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) Preferred Stock
B) Deferred Stock
C) none of these
D) All 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) P99,225
B) No DISCOUNT
C) none of these
D) P5,775
E) P9,922,500
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Bank
B) References
C) none of these
D) Personal Interview
E) Credit Bureaus
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) none of these
B) Replacement investment
C) New market investment
D) Expansion investment
E) Strategic investment
  • 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) TRUE
C) none of these
D) Both True and False
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) Long-term financing
D) Intermediate-term financing
E) Short-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) Capacity
B) Character
C) Capital
D) none of these
E) Condition
  • 52. Why is working capital important?
A) It shows the liquidity of a company
B) It indicates the profitability of a company
C) It shows the market capitalization 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) ALL OF THESE
B) P750
C) P700
D) NONE OF THESE
E) P1,750
  • 54. the capital requirement of the firm may be classified into three, except:
A) Medium - term
B) Long-term
C) All of these
D) Short-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) All of these
B) Inventory Investment
C) Inventory
D) none of these
E) Inventory Management
  • 56. The following are example of stock financing advantages, which is/are not?
A) Stock issuance does not require collaterals
B) none of these
C) All of these
D) Stock are not interesting bearing
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) P42,750
B) P45,500
C) P2,250
D) none of these
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) P18,825
B) P150,650
C) P106,675
D) NONE OF THESE
E) ALL OF THESE
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Eliminating duplication
B) Revising Plans
C) Cash Planning
D) Establishing Priorities
E) none of these
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) New market investment
B) Expansion investment
C) none of these
D) Other Investment
E) Replacement investment
  • 61. Refers to credit flowing from a large business to small business.
A) Inter business credit
B) none of these
C) Interbusiness credit financing
D) Interbusiness Financing
E) All 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) P830
B) NONE OF THESE
C) P170
D) P510
E) ALL OF THESE
  • 63. Common stock financing has certain advantages which one is not?
A) There is no fixed maturity date attached to common stock financing
B) There are times when common stock is easier to sell then debt.
C) none of these
D) All of these
E) It does not entail fixed charges
  • 64. Which of the following are not example of class of Capital Expenditures?
A) none of these
B) Replacement investment
C) Environment Project
D) Expansion investment
E) Strategics investment
  • 65. It is a sources of long-term capital.
A) Stock Financing
B) none of these
C) Common stock
D) Capital stock
E) Treasury Stock
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