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) All of these
C) Narratives Section
D) Supporting Documentation Section
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) Book Value
C) Non Par Value
D) Market 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) All of these
B) Liquidity
C) none of these
D) Profitability
E) Solvency
  • 5. Which of the following are not example of advantages of short-term credit?
A) Short-term financing is often less costly
B) Short-term financing offer flexibility to the borrower
C) none of these
D) They are easier to obtain
E) all of these
  • 6. It is a right given by the corporation to an individual allowing him.
A) Stock Splits
B) Stock option
C) Stock dividends
D) Acquisition
E) none of these
  • 7. 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) P106,675
C) P18,825
D) NONE OF THESE
E) P150,650
  • 8. Consist of more specialized forms of credit bureaus.
A) none of these
B) Credit Bureaus
C) Credit reporting agencies
D) Bank
E) References
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) none of these
B) Bad debt cost
C) Administrative cost
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) Trade Acceptance
D) Promissory note
E) Open-book credit
  • 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) P87,500
C) P120,454.50
D) NONE OF THESE
E) ALL OF THESE
  • 12. The stated value in the shares of corporation stock is called
A) Market Value
B) Book Value of Stock
C) Par 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) none of these
B) Mercantile credit
C) Commercial credit
D) All of these
E) Accounts receivable
  • 14. date start: May 10

    credit term: 5.5/30

    listed price: P105,000

    DATE PAID: June 15

    HOW MUCH THE DISCOUNT?
A) none of these
B) P9,922,500
C) P5,775
D) all of these
E) P99,225
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) none of these
B) Stock dividends
C) Acquisition
D) Stock option
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) P750
B) none of these
C) P1,750
D) P700
E) ALL OF THESE
  • 17. The planning and control expenditures is referred to as______.
A) Capital expenditures
B) none of these
C) All of these
D) Capital Valuation
E) Capital budgeting
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Sales finance companies
B) Business finance companies
C) Personal finance companies
D) Insurance companies
E) none of these
  • 19. The following are example of credit bureaus except:
A) Bulletins
B) none of these
C) Credit guides
D) Special Services
E) Report
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Supplies
B) Deferred items
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) Open- book credit
B) All of these
C) none of these
D) Promissory note
E) Trade Acceptance
  • 22. sufficient working capital is needed to prevent a business from becoming insolvent.
A) false
B) true
  • 23. PVCI means____________.
A) Discount value of the anticipated cash inflow and outflow
B) Discount value of the anticipated cash outflow
C) Discount value of the anticipated cash inflow
D) All of these
E) none of these
  • 24. Those share of stock without a face or nominal value.
A) Non Par Value
B) Book Value of Stock
C) Par Value
D) none of these
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) Commercial papers
B) Insurance companies
C) none of these
D) All of these
E) Finance companies
  • 26. Refers to the ability of the applicant to operate successfully.
A) Character
B) Condition
C) Capacity
D) none of these
E) Capital
  • 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) Working Capital
C) Income statement
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) Discounted cash flow method
C) Average Return on Investment
D) All of these
E) none of these
  • 30. Refers to the total amount of current assets minus current liabilities.
A) none of these
B) Accounts receivable requirement
C) Cash management
D) Total Capital
E) net working Capital
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 7
B) 2
C) 5
D) 10
E) none of these
  • 32. What is the difference between a cash surplus and a cash deficit?
A) All of these
B) none of these
C) A cash surplus occurs when a business has no cash, while a cash deficit occurs when a business has some cash.
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 less cash than it needs, while a cash deficit occurs when a business has more 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) ALL OF THESE
B) none of these
C) P830
D) P170
E) P510
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Acquisition
B) Investment
C) Warrant
D) none of these
E) Convertible Securities
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) TRUE
B) Both True and False
C) All of these
D) none of these
E) FALSE
  • 36. which of the following could be turned into cash the easiest or quickest?
A) raw materials
B) none of these
C) unfinished products being manufactured
D) all of these
E) finished product sitting in a warehouse
  • 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) Credit guides
B) none of these
C) Reference
D) Personal Interview
E) Credit Bureaus
  • 39. Which of the following is not a reason why businesses need cash?
A) To increase profits
B) none of these
C) To pay bills and expenses
D) To invest in new projects
E) To hire new employees
  • 40. The classes of Capital Expenditures may be classified into________.
A) 8
B) none of these
C) 6
D) 10
E) 5
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) Other investment
B) Initial Investment
C) All of these
D) Later investment
E) none of these
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Urgency
B) none of these
C) Credit
D) Repair
E) Risk Involved
  • 43. Commercial banks offer short-term loans which are either_________.
A) Both Secured and Unsecured
B) none of these
C) 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) Preferred Stock
B) none of these
C) All of these
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) none of these
B) P9,922,500
C) P5,775
D) No DISCOUNT
E) P99,225
  • 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) Credit Bureaus
E) References
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) none of these
B) Expansion investment
C) New market investment
D) Replacement 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) FALSE
B) TRUE
C) none of these
D) All of these
E) Both True and False
  • 50. Deals with the demand for and supply Short-term of funds which may either be secured or unsecured.
A) Short-term financing
B) none of these
C) All of these
D) Long-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) Capital
B) Condition
C) Character
D) Capacity
E) none of these
  • 52. Why is working capital important?
A) none of these
B) It indicates the solvency of a company
C) It indicates the profitability of a company
D) It shows the liquidity of a company
E) It shows the market capitalization 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) P1,750
B) P700
C) NONE OF THESE
D) ALL OF THESE
E) P750
  • 54. the capital requirement of the firm may be classified into three, except:
A) Short-term
B) All of these
C) Long-term
D) none of these
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
C) none of these
D) Inventory Investment
E) All of these
  • 56. The following are example of stock financing advantages, which is/are not?
A) It does not burden the company with redeeming the stock at given date
B) none of these
C) All of these
D) Stock issuance does not require collaterals
E) Stock are not interesting bearing
  • 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) P42,750
D) P2,250
E) P45,500
  • 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) P106,675
C) P150,650
D) ALL OF THESE
E) NONE OF THESE
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Cash Planning
B) Establishing Priorities
C) Revising Plans
D) none of these
E) Eliminating duplication
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) none of these
B) Other Investment
C) New market investment
D) Replacement investment
E) Expansion investment
  • 61. Refers to credit flowing from a large business to small business.
A) none of these
B) Interbusiness Financing
C) Interbusiness credit financing
D) All of these
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) ALL OF THESE
B) NONE OF THESE
C) P170
D) P510
E) P830
  • 63. Common stock financing has certain advantages which one is not?
A) It does not entail fixed charges
B) There are times when common stock is easier to sell then debt.
C) none of these
D) There is no fixed maturity date attached to common stock financing
E) All of these
  • 64. Which of the following are not example of class of Capital Expenditures?
A) none of these
B) Strategics investment
C) Replacement investment
D) Environment Project
E) Expansion investment
  • 65. It is a sources of long-term capital.
A) Capital stock
B) Treasury Stock
C) Common stock
D) Stock Financing
E) none of these
Created with That Quiz — the site for test creation and grading in math and other subjects.