ThatQuiz Test Library Take this test now
elect01
Contributed by: Ann
  • 1. This details the requesting entity's justification for undertaking the proposal
A) Narratives Section
B) Request and authority section
C) none of these
D) Supporting Documentation Section
E) All of these
  • 2. Refers to the stated Value of as Stock based on the Accounting concepts of recorded value as reflected in the Balance Sheet.
A) Non Par Value
B) Market Value
C) Par Value
D) none of these
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) Solvency
B) Liquidity
C) Profitability
D) none of these
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) none of these
C) all of these
D) Short-term financing offer flexibility to the borrower
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 option
C) Acquisition
D) none of these
E) Stock Splits
  • 7. date start: Mar. 22

    credit term: 15/15

    listed price: P125,500

    DATE PAID: April 5

    HOW MUCH THE DISCOUNT?
A) P18,825
B) P106,675
C) P150,650
D) ALL OF THESE
E) NONE OF THESE
  • 8. Consist of more specialized forms of credit bureaus.
A) References
B) Credit reporting agencies
C) none of these
D) Credit Bureaus
E) Bank
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) Bad debt cost
B) Administrative cost
C) none of these
D) All of these
E) Cost of invested funds
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) none of these
B) All of these
C) Open-book credit
D) Promissory note
E) Trade Acceptance
  • 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) P120,454.50
C) P120,500
D) NONE OF THESE
E) ALL OF THESE
  • 12. The stated value in the shares of corporation stock is called
A) Book Value of Stock
B) Non Par Value
C) none of these
D) Market Value
E) Par Value
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) All of these
B) none of these
C) Accounts receivable
D) Mercantile credit
E) Commercial credit
  • 14. date start: May 10

    credit term: 5.5/30

    listed price: P105,000

    DATE PAID: June 15

    HOW MUCH THE DISCOUNT?
A) all of these
B) P9,922,500
C) P5,775
D) P99,225
E) none of these
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Stock option
B) Stock dividends
C) Stock split
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) P700
B) ALL OF THESE
C) P1,750
D) P750
E) none of these
  • 17. The planning and control expenditures is referred to as______.
A) none of these
B) Capital expenditures
C) Capital Valuation
D) All of these
E) Capital budgeting
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Personal finance companies
B) none of these
C) Insurance companies
D) Business finance companies
E) Sales finance companies
  • 19. The following are example of credit bureaus except:
A) Credit guides
B) Special Services
C) Bulletins
D) Report
E) none of these
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) none of these
B) Supplies
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) Promissory note
B) Open- book credit
C) All of these
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 and outflow
B) none of these
C) Discount value of the anticipated cash outflow
D) All of these
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) Par Value
E) none of these
  • 25. it is a short-term promissory note, generally unsecured and which is gold through commercial paper dealer or directly to investor.
A) Insurance companies
B) Commercial papers
C) Finance companies
D) none of these
E) All of these
  • 26. Refers to the ability of the applicant to operate successfully.
A) Condition
B) Character
C) Capital
D) none of these
E) Capacity
  • 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) Income statement
C) Balance sheet
D) All of these
E) none of these
  • 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) Discounted cash flow method
D) Average Return on Investment
E) Payback method
  • 30. Refers to the total amount of current assets minus current liabilities.
A) none of these
B) net working Capital
C) Cash management
D) Accounts receivable requirement
E) Total Capital
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 5
B) 10
C) 2
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) none of these
D) 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.
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) P170
B) ALL OF THESE
C) P510
D) P830
E) none of these
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Acquisition
B) none of these
C) Warrant
D) Investment
E) Convertible Securities
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) Both True and False
B) FALSE
C) none of these
D) TRUE
E) All of these
  • 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) finished product sitting in a warehouse
E) all of these
  • 37. current liabilities are debt that has to be paid________________.
A) in order to buy a current assets
B) in the next 12 months
C) to buy more working capital
D) in the next 5yrs or more
  • 38. Which of the following are example of sources of credit information?
A) Personal Interview
B) Reference
C) none of these
D) Credit guides
E) Credit Bureaus
  • 39. Which of the following is not a reason why businesses need cash?
A) To hire new employees
B) To invest in new projects
C) To pay bills and expenses
D) none of these
E) To increase profits
  • 40. The classes of Capital Expenditures may be classified into________.
A) 10
B) 8
C) none of these
D) 5
E) 6
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) none of these
B) Initial Investment
C) Later investment
D) Other investment
E) All of these
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Credit
B) Repair
C) Urgency
D) Risk Involved
E) none of these
  • 43. Commercial banks offer short-term loans which are either_________.
A) Both Secured and Unsecured
B) none of these
C) Secured
D) neither Secured Nor Unsecured
E) Unsecured
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) none of these
B) All 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) P99,225
B) P5,775
C) none of these
D) No DISCOUNT
E) P9,922,500
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Personal Interview
B) none of these
C) Credit Bureaus
D) Bank
E) References
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) Strategic investment
B) none of these
C) New market investment
D) Replacement investment
E) Expansion 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) none of these
C) Both True and False
D) FALSE
E) TRUE
  • 50. Deals with the demand for and supply Short-term of funds which may either be secured or unsecured.
A) Short-term financing
B) Long-term financing
C) All of these
D) Intermediate-term financing
E) none of these
  • 51. Refers to the reputation for honesty and fair dealing of the applicant or the owner of the firm applying for credit.
A) Condition
B) Capacity
C) none of these
D) Capital
E) Character
  • 52. Why is working capital important?
A) It indicates the profitability of a company
B) It shows the liquidity of a company
C) It shows the market capitalization of a company
D) It indicates the solvency of a company
E) none of these
  • 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) P700
C) P750
D) P1,750
E) NONE OF THESE
  • 54. the capital requirement of the firm may be classified into three, except:
A) Long-term
B) Medium - term
C) All of these
D) none of these
E) Short-term
  • 55. Refers to the activity that keep track of how many of the procured items needed to create a product.
A) Inventory Investment
B) none of these
C) All of these
D) Inventory Management
E) Inventory
  • 56. The following are example of stock financing advantages, which is/are not?
A) none of these
B) It does not burden the company with redeeming the stock at given date
C) Stock are not interesting bearing
D) All of these
E) Stock issuance does not require collaterals
  • 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) ALL OF THESE
C) P2,250
D) P45,500
E) P42,750
  • 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) P150,650
C) ALL OF THESE
D) P18,825
E) NONE OF THESE
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) none of these
B) Revising Plans
C) Cash Planning
D) Establishing Priorities
E) Eliminating duplication
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) New market investment
B) Expansion investment
C) Replacement investment
D) Other Investment
E) none of these
  • 61. Refers to credit flowing from a large business to small business.
A) Interbusiness Financing
B) Inter business credit
C) All of these
D) none of these
E) Interbusiness credit 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) P830
C) P510
D) NONE OF THESE
E) ALL OF THESE
  • 63. Common stock financing has certain advantages which one is not?
A) There are times when common stock is easier to sell then debt.
B) none of these
C) There is no fixed maturity date attached to common stock financing
D) It does not entail fixed charges
E) All of these
  • 64. Which of the following are not example of class of Capital Expenditures?
A) Strategics investment
B) Expansion investment
C) Environment Project
D) Replacement investment
E) none of these
  • 65. It is a sources of long-term capital.
A) none of these
B) Common stock
C) Capital stock
D) Stock Financing
E) Treasury Stock
Created with That Quiz — the site for test creation and grading in math and other subjects.