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Contributed by: Ann
  • 1. This details the requesting entity's justification for undertaking the proposal
A) none of these
B) Narratives Section
C) Supporting Documentation Section
D) All of these
E) Request and authority 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) Par Value
B) Market Value
C) Book Value
D) Non Par Value
E) none of these
  • 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) Profitability
C) none of these
D) Liquidity
E) All of these
  • 5. Which of the following are not example of advantages of short-term credit?
A) They are easier to obtain
B) none of these
C) all of these
D) Short-term financing offer flexibility to the borrower
E) Short-term financing is often less costly
  • 6. It is a right given by the corporation to an individual allowing him.
A) none of these
B) Stock Splits
C) Acquisition
D) Stock dividends
E) Stock option
  • 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) P18,825
C) NONE OF THESE
D) ALL OF THESE
E) P150,650
  • 8. Consist of more specialized forms of credit bureaus.
A) References
B) none of these
C) Credit Bureaus
D) Bank
E) Credit reporting agencies
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) Cost of invested funds
B) none of these
C) All of these
D) Bad debt cost
E) Administrative cost
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) Open-book credit
B) none of these
C) All of these
D) Trade Acceptance
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) P120,454.50
B) P87,500
C) P120,500
D) ALL OF THESE
E) NONE OF THESE
  • 12. The stated value in the shares of corporation stock is called
A) Book Value of Stock
B) Par Value
C) Market Value
D) Non Par Value
E) none of these
  • 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) Commercial credit
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) P99,225
B) P9,922,500
C) none of these
D) P5,775
E) all of these
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Stock dividends
B) Acquisition
C) Stock split
D) Stock option
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) P750
C) none of these
D) P1,750
E) ALL OF THESE
  • 17. The planning and control expenditures is referred to as______.
A) Capital budgeting
B) none of these
C) Capital expenditures
D) Capital Valuation
E) All of these
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Insurance companies
B) none of these
C) Personal finance companies
D) Sales finance companies
E) Business finance companies
  • 19. The following are example of credit bureaus except:
A) Credit guides
B) Report
C) Special Services
D) none of these
E) Bulletins
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Deferred items
B) Supplies
C) none of these
D) Prepaid expense
E) Unearned Revenue
  • 21. It is unsecured and it permits the customer to pay for goods delivered to him in a specified number of days.
A) none of these
B) Trade Acceptance
C) Promissory note
D) Open- book credit
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) All of these
B) Discount value of the anticipated cash outflow
C) Discount value of the anticipated cash inflow
D) none of these
E) Discount value of the anticipated cash inflow and outflow
  • 24. Those share of stock without a face or nominal value.
A) Book Value of Stock
B) none of these
C) Non Par Value
D) Par Value
E) Market Value
  • 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) Finance companies
C) All of these
D) Commercial papers
E) none of these
  • 26. Refers to the ability of the applicant to operate successfully.
A) Capacity
B) none of these
C) Condition
D) Capital
E) Character
  • 27. Anyone who has bought from a business without payment (buying on credit) is known as a
A) DEBTOR
B) CREDITOR
  • 28. The formula of CURRENT ASSETS - CURRENT LIABILITIES =___________ What account title?
A) Balance sheet
B) Income statement
C) Working Capital
D) none of these
E) All of these
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) Payback method
B) All of these
C) none of these
D) Average Return on Investment
E) Discounted cash flow method
  • 30. Refers to the total amount of current assets minus current liabilities.
A) Accounts receivable requirement
B) net working Capital
C) Cash management
D) Total Capital
E) none of these
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 7
B) 10
C) 5
D) none of these
E) 2
  • 32. What is the difference between a cash surplus and a cash deficit?
A) 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.
B) none of these
C) All of these
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) A cash surplus occurs when a business has no cash, while a cash deficit occurs when a business has some cash.
  • 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) none of these
B) P170
C) ALL OF THESE
D) P830
E) P510
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Warrant
B) Convertible Securities
C) Acquisition
D) Investment
E) none of these
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) none of these
B) TRUE
C) FALSE
D) Both True and False
E) All of these
  • 36. which of the following could be turned into cash the easiest or quickest?
A) none of these
B) all of these
C) raw materials
D) unfinished products being manufactured
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 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 Bureaus
C) Personal Interview
D) Credit guides
E) none of these
  • 39. Which of the following is not a reason why businesses need cash?
A) To invest in new projects
B) To hire new employees
C) none of these
D) To increase profits
E) To pay bills and expenses
  • 40. The classes of Capital Expenditures may be classified into________.
A) 6
B) 8
C) 5
D) none of these
E) 10
  • 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) none of these
B) Risk Involved
C) Credit
D) Repair
E) Urgency
  • 43. Commercial banks offer short-term loans which are either_________.
A) Secured
B) neither Secured Nor Unsecured
C) none of these
D) Unsecured
E) Both Secured and Unsecured
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) Preferred Stock
B) All of these
C) Common Stock
D) none of these
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) none of these
B) No DISCOUNT
C) P5,775
D) P9,922,500
E) P99,225
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Credit Bureaus
B) Bank
C) Personal Interview
D) References
E) none of these
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) Replacement investment
B) Strategic investment
C) New market investment
D) Expansion investment
E) none of these
  • 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) FALSE
B) TRUE
C) Both True and False
D) none of these
E) All of these
  • 50. Deals with the demand for and supply Short-term of funds which may either be secured or unsecured.
A) All of these
B) Intermediate-term financing
C) Long-term financing
D) none of these
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) Character
B) Capacity
C) Condition
D) Capital
E) none of these
  • 52. Why is working capital important?
A) It indicates the profitability of a company
B) none of these
C) It shows the market capitalization of a company
D) It shows the liquidity of a company
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) P750
B) P700
C) ALL OF THESE
D) NONE OF THESE
E) P1,750
  • 54. the capital requirement of the firm may be classified into three, except:
A) Short-term
B) none of these
C) All of these
D) Long-term
E) Medium - term
  • 55. Refers to the activity that keep track of how many of the procured items needed to create a product.
A) Inventory Management
B) Inventory Investment
C) All of these
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) none of these
C) All of these
D) It does not burden the company with redeeming the stock at given date
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) P2,250
B) P42,750
C) ALL OF THESE
D) P45,500
E) none of these
  • 58. date start: Mar. 22

    credit term: 15/15

    listed price: P125,500

    DATE PAID: April 5

    HOW MUCH THE DISCOUNT?
A) ALL OF THESE
B) P150,650
C) NONE OF THESE
D) P18,825
E) P106,675
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Revising Plans
B) none of these
C) Cash Planning
D) Eliminating duplication
E) Establishing Priorities
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) Other Investment
B) New market investment
C) Expansion investment
D) none of these
E) Replacement investment
  • 61. Refers to credit flowing from a large business to small business.
A) All of these
B) Interbusiness Financing
C) none of these
D) Interbusiness credit financing
E) Inter business credit
  • 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) P830
C) P170
D) ALL OF THESE
E) P510
  • 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) It does not entail fixed charges
C) There is no fixed maturity date attached to common stock financing
D) All of these
E) none of these
  • 64. Which of the following are not example of class of Capital Expenditures?
A) Strategics investment
B) Environment Project
C) Expansion investment
D) none of these
E) Replacement investment
  • 65. It is a sources of long-term capital.
A) Stock Financing
B) Capital stock
C) none of these
D) Common stock
E) Treasury Stock
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