ThatQuiz Test Library Take this test now
elect01
Contributed by: Ann
  • 1. This details the requesting entity's justification for undertaking the proposal
A) none of these
B) Narratives Section
C) Request and authority section
D) All of these
E) Supporting Documentation 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) Market Value
C) Book Value
D) Par 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) 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) All of these
C) Liquidity
D) Profitability
E) none of these
  • 5. Which of the following are not example of advantages of short-term credit?
A) all of these
B) Short-term financing is often less costly
C) none 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 Splits
B) Stock option
C) Stock dividends
D) none of these
E) Acquisition
  • 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) none of these
B) Bank
C) Credit reporting agencies
D) Credit Bureaus
E) References
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) none of these
B) Bad debt cost
C) Administrative cost
D) Cost of invested funds
E) All of these
  • 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) none of these
D) All of these
E) Promissory note
  • 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) ALL OF THESE
D) P120,500
E) P120,454.50
  • 12. The stated value in the shares of corporation stock is called
A) Par Value
B) Book Value of Stock
C) Market Value
D) none of these
E) Non Par Value
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) Commercial credit
B) none of these
C) Accounts receivable
D) All of these
E) Mercantile credit
  • 14. date start: May 10

    credit term: 5.5/30

    listed price: P105,000

    DATE PAID: June 15

    HOW MUCH THE DISCOUNT?
A) P9,922,500
B) P99,225
C) none of these
D) all of these
E) P5,775
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Stock split
B) none of these
C) Stock dividends
D) Acquisition
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) none of these
B) P1,750
C) ALL OF THESE
D) P750
E) P700
  • 17. The planning and control expenditures is referred to as______.
A) All of these
B) none of these
C) Capital budgeting
D) Capital Valuation
E) Capital expenditures
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Personal finance companies
B) Business finance companies
C) none of these
D) Insurance companies
E) Sales finance companies
  • 19. The following are example of credit bureaus except:
A) Special Services
B) Credit guides
C) Report
D) Bulletins
E) none of these
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Unearned Revenue
B) Supplies
C) Prepaid expense
D) none of these
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) Open- book credit
B) none of these
C) Promissory note
D) Trade Acceptance
E) All of these
  • 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 outflow
B) Discount value of the anticipated cash inflow and outflow
C) none of these
D) Discount value of the anticipated cash inflow
E) All of these
  • 24. Those share of stock without a face or nominal value.
A) Par Value
B) Non Par Value
C) Market Value
D) Book Value of Stock
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) Commercial papers
B) none of these
C) Insurance companies
D) All of these
E) Finance companies
  • 26. Refers to the ability of the applicant to operate successfully.
A) Character
B) Capital
C) Capacity
D) Condition
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) Income statement
B) none of these
C) Working Capital
D) All of these
E) Balance sheet
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) All of these
B) Payback method
C) Average Return on Investment
D) Discounted cash flow method
E) none of these
  • 30. Refers to the total amount of current assets minus current liabilities.
A) net working Capital
B) Total Capital
C) Cash management
D) Accounts receivable requirement
E) none of these
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 7
B) 10
C) 5
D) 2
E) none of these
  • 32. What is the difference between a cash surplus and a cash deficit?
A) none of these
B) A cash surplus occurs when a business has no cash, while a cash deficit occurs when a business has some cash.
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) 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.
E) All of these
  • 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) P510
C) none of these
D) ALL OF THESE
E) P170
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Convertible Securities
B) Acquisition
C) Warrant
D) Investment
E) none of these
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) TRUE
B) none of these
C) All of these
D) Both True and False
E) FALSE
  • 36. which of the following could be turned into cash the easiest or quickest?
A) all of these
B) none of these
C) raw materials
D) finished product sitting in a warehouse
E) unfinished products being manufactured
  • 37. current liabilities are debt that has to be paid________________.
A) in the next 5yrs or more
B) to buy more working capital
C) in order to buy a current assets
D) in the next 12 months
  • 38. Which of the following are example of sources of credit information?
A) Reference
B) Credit guides
C) none of these
D) Credit Bureaus
E) Personal Interview
  • 39. Which of the following is not a reason why businesses need cash?
A) To increase profits
B) none of these
C) To invest in new projects
D) To hire new employees
E) To pay bills and expenses
  • 40. The classes of Capital Expenditures may be classified into________.
A) 10
B) 6
C) none of these
D) 5
E) 8
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) none of these
B) All of these
C) Later investment
D) Other investment
E) Initial Investment
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Repair
B) Urgency
C) Credit
D) none of these
E) Risk Involved
  • 43. Commercial banks offer short-term loans which are either_________.
A) none of these
B) Unsecured
C) Both Secured and Unsecured
D) Secured
E) neither Secured Nor Unsecured
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) Deferred Stock
B) Preferred Stock
C) none of these
D) Common Stock
E) All of these
  • 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) No DISCOUNT
D) none of these
E) P9,922,500
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) none of these
B) Personal Interview
C) Bank
D) References
E) Credit Bureaus
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) none of these
B) Expansion investment
C) New market investment
D) Strategic investment
E) Replacement investment
  • 48. THE GOAL OF WORKING CAPITAL MANAGEMENT IS TO ENSURE ADEQUATE CASH FLOW FOR OPERATIONS.
A) FALSE
B) true
  • 49. Accrued taxes normally takes a longer time lag before payment becomes due.
A) none of these
B) FALSE
C) Both True and False
D) All of these
E) TRUE
  • 50. Deals with the demand for and supply Short-term of funds which may either be secured or unsecured.
A) Long-term financing
B) All of these
C) none of these
D) Short-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) Condition
B) Capacity
C) none of these
D) Capital
E) Character
  • 52. Why is working capital important?
A) It shows the market capitalization of a company
B) It shows the liquidity of a company
C) none of these
D) It indicates the solvency of a company
E) It indicates the profitability 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) NONE OF THESE
D) P1,750
E) P700
  • 54. the capital requirement of the firm may be classified into three, except:
A) Medium - term
B) Long-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) All of these
B) Inventory Investment
C) Inventory Management
D) none of these
E) Inventory
  • 56. The following are example of stock financing advantages, which is/are not?
A) Stock are not interesting bearing
B) It does not burden the company with redeeming the stock at given date
C) All of these
D) Stock issuance does not require collaterals
E) none of these
  • 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) P45,500
D) P2,250
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) NONE OF THESE
B) P150,650
C) P18,825
D) ALL OF THESE
E) P106,675
  • 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) Other Investment
B) New market investment
C) Replacement investment
D) none of these
E) Expansion investment
  • 61. Refers to credit flowing from a large business to small business.
A) All of these
B) Inter business credit
C) none of these
D) Interbusiness Financing
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) NONE OF THESE
B) P170
C) ALL OF THESE
D) P830
E) P510
  • 63. Common stock financing has certain advantages which one is not?
A) All of these
B) There are times when common stock is easier to sell then debt.
C) There is no fixed maturity date attached to common stock financing
D) none of these
E) It does not entail fixed charges
  • 64. Which of the following are not example of class of Capital Expenditures?
A) Expansion investment
B) Environment Project
C) Replacement investment
D) none of these
E) Strategics investment
  • 65. It is a sources of long-term capital.
A) Capital stock
B) Treasury Stock
C) Common stock
D) none of these
E) Stock Financing
Created with That Quiz — the site for test creation and grading in math and other subjects.