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B.FINANCE-ABM12FERNANDEZ 1STQRTR
Contributed by: FERNANDEZ
  • 1. Which of the following is not an example of general loan application documents in nonbank financial institution?
A) Water bill
B) certificate of registration
C) Certificate of no pending case
D) Electric bill
  • 2. To accomplish one of the income documents, a borrower may present a copy of payslip reflecting how many month/s?
A) 4 months
B) 3 months
C) 6 months
D) 1 month
  • 3. In nonbank financial institutions general loan application documents, which of the following can be represented by an OFW borrower?
A) Signature of co-maker
B) Copy of passport
C) Certificate of Employment
D) Business permit
  • 4. Steven will apply for a loan in Palawan bank. What general document will he accomplish first?
A) Signature of spouse
B) Daniel's signature
C) Valid IDs
D) Loan application form
  • 5. Which loan requirements are submitted to support the loans secured from the banks?
A) Income Documents
B) Collateral Documents
C) General Loan Application Documents
D) Generic Loan Documents
  • 6. Which of the following is the collateral documents/s for owned vehicles required by nonbank financial institutions?
A) Official Receipt and Certificate of Registration
B) Ta declaration and Ta clearance
C) Transfer Certificate of Title
D) Copy of ownership
  • 7. These pertain to loan requirements that reflect the employment/business of the borrower.
A) General Loan Application Documents
B) Income Documents
C) Generic Loan Documents
D) Collateral Documents
  • 8. Which of the following is mandated by the Banko Sentral ng Pilipinas to be clearly stated in the loan application and contract?
A) Kind of business
B) Kind of employment
C) Purpose of the loan
D) Loan amount
  • 9. Which of the following is not a reason for financial institutions to demand for loan requirements?
A) To assess the financial capability of the borrower
B) To verify the identity of the borrower
C) To evaluate credit ratings
D) To gain linkages with suppliers and customers
  • 10. When the borrower is married, which of the following signature/s should not be missed when filling-out the general loan application documents?
A) Borrower's signature only
B) Borrower and co-maker's signature
C) Co-maker signature only
D) Borrower and spouse's signature
  • 11. Amon the following, who is tasked to analyze the financial track record of the borrower?
A) Credit Bureau
B) Manager
C) Credit analyst
D) Loan officer
  • 12. All are examples of income documents except fot:
A) Copy of Income Tax Return
B) Employment Certificate
C) Copy of Visa
D) Business/ Mayor’s Permit
  • 13. Which of the following is reflected in the credit rating of the borrower?
A) Credit balance
B) Credit history
C) Both a and b
D) Loanable amount
  • 14. All are needed loan requirements for business owners or self-employed
    individuals EXCEPT for:
A) Business/ Mayor’s Permit
B) Bank Statement
C) Certificate of Employment
D) Audited Financial Statements
  • 15. Jessica, a self-employed individual applied for a loan in a bank. One of the
    documents she submitted is a copy of her Income Tax Return for one year. The
    bank declined her application. Why do you think so?
A) She must not submit the ITR
B) Her ITR must be for the last 2 years
C) Her ITR must be for the last 6 years
D) She must submit two copies if her ITR
  • 16. What is budgeting?
A) Having enough money to buy something.
B) Having money left over at the end of the month.
C) A plan made in advance regarding the expenditure of money based on available income.
D) Having ability to pay bills on time.
  • 17. What is the purpose of a budget?
A) Helping spend wisely
B) Estimating income and expenses
C) Saving for future expenses
D) Increasing income
  • 18. What is/are the objective/s of Proforma Financial Statements?
A) To facilitate comparisons of historic data and projections of future Performance.
B) To give an idea of how the actual statement will look like.
C) All of the them
D) It helps you get financed because the lenders or investors will see how you would use their money to grow your business.
  • 19. Financial planning is a process to ensure that ________________.
A) the company is solvent.
B) the company is liquid and has paid all its investors’ dividends.
C) the resources are unlimited.
D) the cash flow of the company is positive.
  • 20. A plan to be effective should be created using S.M.A.R.T. philosophy.
    What do S.M.A.R.T. mean?
A) Smart, measurable, assignable, realistic, time-related
B) None of the above
C) Specific, macro, assignable, realistic, time-related
D) Specific, measurable, assignable, realistic, time-related
  • 21. Primary and secondary markets are markets for short-term and
    long-term securities, respectively.
A) True
B) False
C) Maybe
  • 22. The money market involves trading of securities with
    maturities of one year or less while the capital market
    involves the buying and selling of securities with maturities of
    more than one year.
A) False
B) True
C) Maybe
  • 23. Corporate owners receive realizable return through
A) profit and earnings per share.
B) increase in share price and cash dividends.
C) earnings per share and cash dividends.
D) increase in share price and earnings per share.
  • 24. The wealth of the owners of a corporation is represented by
A) Shared value
B) earnings per share.
C) profits.
D) cash flow
  • 25. By definition, the money market involves the buying and selling of
    ______.
A) flows of funds.
B) short-term funds.
C) stocks and bonds.
D) funds that mature in more than one year.
  • 26. Which of the following statements about budgeting is incorrect?
A) Budgets provide direction and coordination.
B) A budget is a financial plan.
C) Budgets motivate staff.
D) A budget looks back and review performance.
  • 27. Which of the following is normally prepared first?
A) Production Budget
B) None of the above
C) Cash Budget
D) Sales Budget
  • 28. What is a sales budget?
A) A plan of how much an item will cost.
B) A plan of tracking an inventory and how much they sell
C) A plan of items to be sold.
D) A plan for how much money should be made in a given period
  • 29. Why many small businesses do not use budget?
A) All of the above.
B) Small businesses do not record variances.
C) Budgeting can be time consuming.
D) Budgeting is for large firms only
  • 30. Which of the following is NOT a benefit of budgeting?
A) It is a means of coordinating business activities?
B) It prevents company to incur net losses.
C) It promotes study, research, and focus on the future.
D) It is a source of motivation.
  • 31. A ______________________is one financial intermediary handling individual
    savings and receives premium payments that are placed in loans.
A) life insurance company
B) commercial bank
C) savings bank
D) credit union
  • 32. The key participants in financial transactions are individuals, businesses,
    and governments. Individuals are net of funds, and businesses are net of
    funds.
A) users; suppliers
B) users; providers
C) purchasers; sellers
D) suppliers; users
  • 33. Wealth maximization as the goal of the firm implies enhancing the wealth of
A) the federal government
B) the Board of Directors.
C) the firm's employees
D) the firm's stockholders
  • 34. A is set up so that employees of corporations or governments can receive
    income after retirement.
A) savings bank
B) pension fund
C) credit union
D) life insurance company
  • 35. A is a type of financial intermediary that pools savings of individuals and
    makes them available to business and government users. Funds are
    obtained through the sale of shares.
A) savings bank
B) mutual fund
C) credit union
D) savings and loans
  • 36. Most businesses raise money by selling their securities in a.
A) a stock exchange.
B) a private placement.
C) a public offering.
D) a direct placement.
  • 37. Which of the following is not a service provided by financial institutions?
A) Lending money to customers
B) Investing customers’ savings in stocks and bonds
C) Buying the businesses of customers
D) Paying savers’ interest on deposited funds
  • 38. The goal of profit maximization would result in priority for
A) cash flows available to stockholders
B) timing of the returns
C) risk of the investment
D) earnings per share.
  • 39. Profit maximization, as a goal, is not ideal because it does NOT consider
A) EPS and stock price
B) risk and cash flow.
C) risk and EPS.
D) cash flow and stock price.
  • 40. What is the income earned on a stock?
A) Dividend
B) Interest
C) Premium
D) Deposit
  • 41. What do you call an owner of a company’s stocks?
A) Stockholder
B) Creditor
C) Broker
D) Bondholder
  • 42. What is the income earned on a bond?
A) Dividends
B) Premium
C) Interest
D) Capital Gains
  • 43. Which of the following is not an example of a deposit investment?
A) Current
B) Mutual funds
C) Savings
D) Time deposit
  • 44. Get the production budget of the X company using the given data.
    year 1 year 2 year 3
    Sales 5,000 7,000 14,000
    Beg. Inventory 2,000 2,500 4,000
    Ending Inventory 1,000 2,000 3,000

    What is the Production budget for year 1?
A) 3,000
B) 6,000
C) 4,000
D) 7,000
  • 45. Get the production budget of the X company using the given data.
    year 1 year 2 year 3
    Sales 5,000 7,000 14,000
    Beg. Inventory 2,000 2,500 4,000
    Ending Inventory 1,000 2,000 3,000

    What is the Production budget for year 2?
A) 6,500
B) 7,00
C) 4,00
D) 7,500
  • 46. Get the production budget of the X company using the given data.
    year 1 year 2 year 3
    Sales 5,000 7,000 14,000
    Beg. Inventory 2,000 2,500 4,000
    Ending Inventory 1,000 2,000 3,000

    What is the Production budget for year 3?
A) 14,000
B) 13,000
C) 7,500
D) 4,000
  • 47. Compute for the sales budget of the Y company using the given data.
    Qtr1 Qtr2 Qtr3
    Forcasted u/sales 5,500 6,000 7,000
    Price /unit 13 15 16
    Total Gross Sales ? ? ?
    What is the Total gross sales for Qtr1?
A) 5,513
B) 71,500
C) 423.07
D) none of them
  • 48. Compute for the sales budget of the Y company using the given data.
    Qtr1 Qtr2 Qtr3
    Forcasted u/sales 5,500 6,000 7,000
    Price /unit 13 15 16
    Total Gross Sales ? ? ?
    What is the Total gross sales for Qtr2?
A) 90,000
B) 400
C) 6,015
D) 9,500
  • 49. Compute for the sales budget of the Y company using the given data.
    Qtr1 Qtr2 Qtr3
    Forcasted u/sales 5,500 6,000 7,000
    Price /unit 13 15 16
    Total Gross Sales ? ? ?
    What is the Total gross sales for Qtr3?
A) 437.5
B) 7,016
C) 7,500
D) 112,000
  • 50. What is the formula for computing production budget?
A) Planned Ending Inventory Units + Beginning Inventory in Units – Expected Sales in Units
B) Expected Sales in Units + Planned Ending Inventory Units – Beginning Inventory in Units
C) None of the above
D) Expected Sales in Units + Beginning Inventory in Units + Planned Ending Inventory Units
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