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elect01
Contributed by: Ann
  • 1. This details the requesting entity's justification for undertaking the proposal
A) All of these
B) none of these
C) Narratives Section
D) Request and authority section
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) Non Par Value
B) Par Value
C) Book Value
D) none of these
E) Market 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) All of these
B) Liquidity
C) none of these
D) Solvency
E) Profitability
  • 5. Which of the following are not example of advantages of short-term credit?
A) Short-term financing offer flexibility to the borrower
B) none of these
C) Short-term financing is often less costly
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) none of these
B) Stock option
C) Acquisition
D) Stock Splits
E) Stock dividends
  • 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) NONE OF THESE
C) P18,825
D) P150,650
E) P106,675
  • 8. Consist of more specialized forms of credit bureaus.
A) Credit Bureaus
B) Credit reporting agencies
C) Bank
D) none of these
E) References
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) All of these
B) Bad debt cost
C) Cost of invested funds
D) Administrative cost
E) none of these
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) Open-book credit
B) All of these
C) Promissory note
D) none of these
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) P120,454.50
B) ALL OF THESE
C) P87,500
D) P120,500
E) NONE OF THESE
  • 12. The stated value in the shares of corporation stock is called
A) Book Value of Stock
B) none of these
C) Non Par Value
D) Par Value
E) Market 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) Mercantile credit
D) Accounts receivable
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) none of these
B) P5,775
C) all of these
D) P9,922,500
E) P99,225
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Stock split
B) Stock option
C) none of these
D) Acquisition
E) Stock dividends
  • 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) ALL OF THESE
C) P1,750
D) none of these
E) P700
  • 17. The planning and control expenditures is referred to as______.
A) none of these
B) Capital Valuation
C) Capital expenditures
D) Capital budgeting
E) All of these
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Sales finance companies
B) Insurance companies
C) Business finance companies
D) Personal finance 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) Deferred items
B) Supplies
C) none of these
D) Unearned Revenue
E) Prepaid expense
  • 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) Trade Acceptance
C) Open- book credit
D) none of these
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
C) All of these
D) Discount value of the anticipated cash inflow and outflow
E) none of these
  • 24. Those share of stock without a face or nominal value.
A) Market Value
B) Non Par Value
C) Par 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) Insurance companies
B) All of these
C) Finance companies
D) none of these
E) Commercial papers
  • 26. Refers to the ability of the applicant to operate successfully.
A) Condition
B) none of these
C) Capital
D) Capacity
E) Character
  • 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) Average Return on Investment
B) Payback method
C) none of these
D) Discounted cash flow method
E) All of these
  • 30. Refers to the total amount of current assets minus current liabilities.
A) Accounts receivable requirement
B) none of these
C) net working Capital
D) Cash management
E) Total Capital
  • 31. The objectives off the Capital Budgeting are classified into______.
A) none of these
B) 2
C) 7
D) 5
E) 10
  • 32. What is the difference between a cash surplus and a cash deficit?
A) 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.
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) A cash surplus occurs when a business has no cash, while a cash deficit occurs when a business has some cash.
E) none 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) P510
B) ALL OF THESE
C) P830
D) P170
E) none of these
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Warrant
B) Investment
C) none of these
D) Convertible Securities
E) Acquisition
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) none of these
B) Both True and False
C) TRUE
D) FALSE
E) All of these
  • 36. which of the following could be turned into cash the easiest or quickest?
A) finished product sitting in a warehouse
B) none of these
C) raw materials
D) unfinished products being manufactured
E) all of these
  • 37. current liabilities are debt that has to be paid________________.
A) in the next 12 months
B) to buy more working capital
C) in the next 5yrs or more
D) in order to buy a current assets
  • 38. Which of the following are example of sources of credit information?
A) Reference
B) Credit guides
C) Credit Bureaus
D) Personal Interview
E) none of these
  • 39. Which of the following is not a reason why businesses need cash?
A) To increase profits
B) none of these
C) To hire new employees
D) To pay bills and expenses
E) To invest in new projects
  • 40. The classes of Capital Expenditures may be classified into________.
A) 8
B) 6
C) 5
D) 10
E) none of these
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) Later investment
B) Other investment
C) Initial Investment
D) All of these
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) Credit
D) Repair
E) Urgency
  • 43. Commercial banks offer short-term loans which are either_________.
A) Both Secured and Unsecured
B) Unsecured
C) neither Secured Nor Unsecured
D) Secured
E) none of these
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) Deferred Stock
B) All of these
C) none of these
D) Common Stock
E) Preferred Stock
  • 45. date start: July 31

    credit term: 5.5/30

    listed price: P105,000

    DATE PAID: Aug. 31

    HOW MUCH THE DISCOUNT?
A) P9,922,500
B) P99,225
C) P5,775
D) none of these
E) No DISCOUNT
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Personal Interview
B) Bank
C) Credit Bureaus
D) References
E) none of these
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) Strategic investment
B) New market investment
C) Expansion investment
D) Replacement investment
E) none of these
  • 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) FALSE
B) TRUE
C) none of these
D) Both True and False
E) All of these
  • 50. Deals with the demand for and supply Short-term of funds which may either be secured or unsecured.
A) Intermediate-term financing
B) All of these
C) Long-term financing
D) Short-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) Character
B) Capital
C) Capacity
D) none of these
E) Condition
  • 52. Why is working capital important?
A) It shows the liquidity of a company
B) none of these
C) It shows the market capitalization of a company
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) P750
B) ALL OF THESE
C) P700
D) NONE OF THESE
E) P1,750
  • 54. the capital requirement of the firm may be classified into three, except:
A) none of these
B) All of these
C) Short-term
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) All of these
B) none of these
C) Inventory Investment
D) Inventory
E) Inventory Management
  • 56. The following are example of stock financing advantages, which is/are not?
A) Stock issuance does not require collaterals
B) All of these
C) Stock are not interesting bearing
D) It does not burden the company with redeeming the stock at given date
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) P2,250
B) none of these
C) ALL OF THESE
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) NONE OF THESE
B) P18,825
C) ALL OF THESE
D) P150,650
E) P106,675
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Eliminating duplication
B) Establishing Priorities
C) Cash Planning
D) Revising Plans
E) none of these
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) New market investment
B) Expansion investment
C) Other Investment
D) Replacement 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) none of these
D) Interbusiness credit 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) P170
B) P510
C) P830
D) ALL OF THESE
E) NONE 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) There is no fixed maturity date attached to common stock financing
C) It does not entail fixed charges
D) All of these
E) none of these
  • 64. Which of the following are not example of class of Capital Expenditures?
A) none of these
B) Replacement investment
C) Expansion investment
D) Environment Project
E) Strategics investment
  • 65. It is a sources of long-term capital.
A) Treasury Stock
B) Common stock
C) Capital stock
D) Stock Financing
E) none of these
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