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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) Electric bill
B) Certificate of no pending case
C) Water bill
D) certificate of registration
  • 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) 6 months
C) 1 month
D) 3 months
  • 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) Business permit
D) Certificate of Employment
  • 4. Steven will apply for a loan in Palawan bank. What general document will he accomplish first?
A) Loan application form
B) Daniel's signature
C) Valid IDs
D) Signature of spouse
  • 5. Which loan requirements are submitted to support the loans secured from the banks?
A) Income Documents
B) General Loan Application Documents
C) Collateral Documents
D) Generic Loan Documents
  • 6. Which of the following is the collateral documents/s for owned vehicles required by nonbank financial institutions?
A) Transfer Certificate of Title
B) Official Receipt and Certificate of Registration
C) Copy of ownership
D) Ta declaration and Ta clearance
  • 7. These pertain to loan requirements that reflect the employment/business of the borrower.
A) Collateral Documents
B) Generic Loan Documents
C) Income Documents
D) General Loan Application 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) Loan amount
B) Purpose of the loan
C) Kind of employment
D) Kind of business
  • 9. Which of the following is not a reason for financial institutions to demand for loan requirements?
A) To gain linkages with suppliers and customers
B) To evaluate credit ratings
C) To verify the identity of the borrower
D) To assess the financial capability of the borrower
  • 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) Borrower and spouse's signature
D) Co-maker signature only
  • 11. Amon the following, who is tasked to analyze the financial track record of the borrower?
A) Manager
B) Credit analyst
C) Loan officer
D) Credit Bureau
  • 12. All are examples of income documents except fot:
A) Copy of Visa
B) Copy of Income Tax Return
C) Business/ Mayor’s Permit
D) Employment Certificate
  • 13. Which of the following is reflected in the credit rating of the borrower?
A) Loanable amount
B) Both a and b
C) Credit history
D) Credit balance
  • 14. All are needed loan requirements for business owners or self-employed
    individuals EXCEPT for:
A) Audited Financial Statements
B) Business/ Mayor’s Permit
C) Certificate of Employment
D) Bank Statement
  • 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) Her ITR must be for the last 6 years
B) She must not submit the ITR
C) Her ITR must be for the last 2 years
D) She must submit two copies if her ITR
  • 16. What is budgeting?
A) Having ability to pay bills on time.
B) Having money left over at the end of the month.
C) Having enough money to buy something.
D) A plan made in advance regarding the expenditure of money based on available income.
  • 17. What is the purpose of a budget?
A) Helping spend wisely
B) Increasing income
C) Estimating income and expenses
D) Saving for future expenses
  • 18. What is/are the objective/s of Proforma Financial Statements?
A) All of the them
B) To facilitate comparisons of historic data and projections of future Performance.
C) To give an idea of how the actual statement will look like.
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 liquid and has paid all its investors’ dividends.
B) the company is solvent.
C) the cash flow of the company is positive.
D) the resources are unlimited.
  • 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) Specific, measurable, assignable, realistic, time-related
B) Smart, measurable, assignable, realistic, time-related
C) None of the above
D) Specific, macro, assignable, realistic, time-related
  • 21. Primary and secondary markets are markets for short-term and
    long-term securities, respectively.
A) Maybe
B) False
C) True
  • 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) True
B) False
C) Maybe
  • 23. Corporate owners receive realizable return through
A) earnings per share and cash dividends.
B) profit and earnings per share.
C) increase in share price 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) profits.
B) cash flow
C) earnings per share.
D) Shared value
  • 25. By definition, the money market involves the buying and selling of
    ______.
A) funds that mature in more than one year.
B) short-term funds.
C) flows of funds.
D) stocks and bonds.
  • 26. Which of the following statements about budgeting is incorrect?
A) A budget is a financial plan.
B) Budgets provide direction and coordination.
C) A budget looks back and review performance.
D) Budgets motivate staff.
  • 27. Which of the following is normally prepared first?
A) None of the above
B) Cash Budget
C) Production Budget
D) Sales Budget
  • 28. What is a sales budget?
A) A plan for how much money should be made in a given period
B) A plan of tracking an inventory and how much they sell
C) A plan of how much an item will cost.
D) A plan of items to be sold.
  • 29. Why many small businesses do not use budget?
A) Small businesses do not record variances.
B) Budgeting can be time consuming.
C) Budgeting is for large firms only
D) All of the above.
  • 30. Which of the following is NOT a benefit of budgeting?
A) It prevents company to incur net losses.
B) It promotes study, research, and focus on the future.
C) It is a means of coordinating business activities?
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) commercial bank
B) credit union
C) life insurance company
D) savings bank
  • 32. The key participants in financial transactions are individuals, businesses,
    and governments. Individuals are net of funds, and businesses are net of
    funds.
A) purchasers; sellers
B) users; suppliers
C) users; providers
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) credit union
B) life insurance company
C) pension fund
D) savings bank
  • 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) credit union
B) mutual fund
C) savings bank
D) savings and loans
  • 36. Most businesses raise money by selling their securities in a.
A) a private placement.
B) a public offering.
C) a stock exchange.
D) a direct placement.
  • 37. Which of the following is not a service provided by financial institutions?
A) Investing customers’ savings in stocks and bonds
B) Paying savers’ interest on deposited funds
C) Buying the businesses of customers
D) Lending money to customers
  • 38. The goal of profit maximization would result in priority for
A) earnings per share.
B) timing of the returns
C) cash flows available to stockholders
D) risk of the investment
  • 39. Profit maximization, as a goal, is not ideal because it does NOT consider
A) EPS and stock price
B) cash flow and stock price.
C) risk and cash flow.
D) risk and EPS.
  • 40. What is the income earned on a stock?
A) Deposit
B) Premium
C) Interest
D) Dividend
  • 41. What do you call an owner of a company’s stocks?
A) Stockholder
B) Bondholder
C) Creditor
D) Broker
  • 42. What is the income earned on a bond?
A) Interest
B) Premium
C) Capital Gains
D) Dividends
  • 43. Which of the following is not an example of a deposit investment?
A) Mutual funds
B) Savings
C) Time deposit
D) Current
  • 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) 7,000
C) 4,000
D) 6,000
  • 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) 7,00
B) 4,00
C) 6,500
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) 4,000
B) 13,000
C) 14,000
D) 7,500
  • 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) 423.07
B) 5,513
C) 71,500
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) 9,500
B) 90,000
C) 6,015
D) 400
  • 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) 7,500
C) 7,016
D) 112,000
  • 50. What is the formula for computing production budget?
A) None of the above
B) Expected Sales in Units + Planned Ending Inventory Units – Beginning Inventory in Units
C) Expected Sales in Units + Beginning Inventory in Units + Planned Ending Inventory Units
D) Planned Ending Inventory Units + Beginning Inventory in Units – Expected Sales in Units
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