- 1. 1.Which financial statement shows the financial position of a business at a specific point in time?
a. Income Statement
b. Cash Flow Statement
c. Balance Sheet
d. Statement of Changes in Equity
- 2. 2.Which of the following is a component of the Balance Sheet?
a. Revenue
b. Assets
c. Operating Expense
d. Gross Profit
- 3. 3.Which of the following is a current asset?
a. Land
b. Building
c. Cash
d. Plant Equipment
- 4. 4.Accounts Payable is classified as:
a. Non-current asset
b. Current liability
c. Owner’s equity
d. Revenue
- 5. 5.The Income Statement is also called:
a. Financial Position
b. Profit or Loss Statement
c. Statement of Assets
d. Capital Report
- 6. 6.Gross Profit is computed as:
a. Revenue – Operating Expenses
b. Revenue – Cost of Goods Sold
c. Revenue – Tax
d. Operating Income – Expenses
- 7. 7.Which of the following is a non-current liability?
a. Accrued Expense
b. Accounts Payable
c. Bank Loan
d. Cash
- 8. 8.The Cash Flow Statement shows:
a. Total assets of the business
b. Profit and loss of the business
c. Cash movement in and out of the business
d. Owner’s capital only
- 9. 9.Cash flow from operating activities (CFO) refers to:
a. Cash used to buy equipment
b. Cash from the core business operations
c. Cash from bank loans
d. Cash invested by the owner
- 10. 10.The three types of cash flow activities are:
a. Operating, Investing, Financing
b. Sales, Expenses, Profit
c. Assets, Liabilities, Equity
d. Revenue, Cost, Tax
- 11. 11.What does "CFO" stand for in the provided formula?
(a) Capital Financing Operations
(b) Cash Flow from Operations
(c) Credit Financing Options
(d) Current Financial Obligations
- 12. 12. Which formula is presented as an alternative for calculating CFO?
(a){CFO}={CRC}+{OE/P}+{CWC}
(b){CFO}={CRC}-{OE/P}-{CWC}
(c){CFO}={CRC}-{OE/P}+{CWC}
(d){CFO}={CRC}+{OE/P}-CWC}
- 13. In the provided calculation, which change in working capital item is subtracted?
(a) Decrease in Inventory
(b) Decrease in Acct. Receivable
(c) Operating Expense
(d) Cash received from customer
- 14. In the provided calculation, which change in working capital item is added?
(a) Operating Expense
(b) Cash received from customer
(c) Decrease in Acct. Receivable
(d) Decrease in Inventory
- 15. 15. What is the primary focus of Equity Valuation?
(a) Estimating the value of company shares (b) Estimating the value of company debt (c) Calculating the interest rate on bonds (d) Determining the company's liabilities
- 16. 16. Which of the following is NOT listed as a model of Equity Valuation in the notes?
(a) DCF (Discounted Cash Flow)
(b) DDM (Dividend Discounted Model)
(c) Market to Book Ratio
(d) Asset-Based Valuation
- 17. 17. In the DCF formula, what does 'R' represent?
(a) Revenue
(b) Risk
(c) Discount Rate
(d) Return on Assets
- 18. 18. Based on the example provided, if the cash flow for year 1 is P100,000 and the discount rate is 10%, what is the denominator for the Year 1 cash flow term in the formula?
(a) (1+0.1)^{2}
(b) (1+0.1)^{1}
(c) (1+10)^{1}
(d) (1+10)^{2}
- 19. 19. What is the primary purpose of Equity Valuation, according to the notes?
(a) Estimating the value of a company's debt
(b) Estimating the value of a company's shares
(c) Estimating the company's total liabilities
(d) Estimating the company's operating expenses
- 20. 20. How many models of Equity Valuation are listed in the provided notes?
(a) 2
(b) 3
(c) 4
(d) 5
- 21. 21. Which of the following is NOT listed as a model of Equity Valuation in the notes?
(a) Discounted Cash Flow (DCF)
(b) Dividend Discounted Model (DDM)
(c) Bond Valuation Model
(d) Price-Earning Ratio
- 22.
22. What does the acronym "DCF" stand for in the context of the notes?
(a) Debt Capital Financing
(b) Discounted Company Funds
(c) Discounted Cash Flow
(d) Dividend Capital Formula
- 23. 23. What is the variable "R" defined as in the DCF formula?
(a) Revenue
(b) Risk Factor
(c) Return on Investment
(d) Discount Rate
- 24. 24. What does "CF" represent in the DCF formula?
(a) Capital Funds
(b) Company Finances
(c) Cash Flow
(d) Conversion Factor
- 25. 25. In the example provided, what is the expected cash flow for the second year (\(CF_{2}\))?
a. P100,000
b. P120,000
c. 10%
d. 0.1
- 26. 26. What is the discount rate used in the example calculation?
a.100,000
b.120,000
c. 0.1
d. 1.1
- 27. 27. The formula for the DCF model for two years involves dividing the cash flow for each year by what expression?
a.(1+R)
b. (1+CF)
c.(R+CF)
d. (CF/R)
- 28. 28. Which two types of valuation are contrasted at the very top of the notes?
(a) Asset Valuation vs. Liability Valuation (b) Equity Valuation vs. Debt Valuation
(c) Company Valuation vs. Shareholder Valuation
(d) Market Valuation vs. Book Valuation
- 29. 29.Which formula structure is presented for the DCF model?
(a) {CF}{(1+r)}+{CF}{(1+r)^{2}
(b) (CF+(1+r)^{2}
(c) {CF}{(1+r)^{2}-{CF}{(1+r)
(d) (CF_{1}+CF_{2}
- 30. 30.Besides the Price-Earning Ratio, what other ratio-based valuation model is listed?
(a) Debt-to-Equity Ratio
(b) Current Ratio
(c) Market to Book Ratio
(d) Quick Ratio
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