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  • 1. This details the requesting entity's justification for undertaking the proposal
A) Supporting Documentation Section
B) none of these
C) Request and authority section
D) All of these
E) Narratives 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) Market Value
D) Book 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) false
B) true
  • 4. Refers to the ability of the firm to pay its bills on times or otherwise meet its current obligation.
A) none of these
B) Profitability
C) Solvency
D) All of these
E) Liquidity
  • 5. Which of the following are not example of advantages of short-term credit?
A) none of these
B) They are easier to obtain
C) Short-term financing offer flexibility to the borrower
D) Short-term financing is often less costly
E) all of these
  • 6. It is a right given by the corporation to an individual allowing him.
A) Stock dividends
B) Stock option
C) none of these
D) Stock Splits
E) Acquisition
  • 7. 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) P106,675
C) P150,650
D) P18,825
E) ALL OF THESE
  • 8. Consist of more specialized forms of credit bureaus.
A) Bank
B) none of these
C) Credit Bureaus
D) References
E) Credit reporting agencies
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) All of these
B) Cost of invested funds
C) Administrative cost
D) none of these
E) Bad debt cost
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) Promissory note
B) All of these
C) Trade Acceptance
D) none of these
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) ALL OF THESE
D) NONE OF THESE
E) P120,454.50
  • 12. The stated value in the shares of corporation stock is called
A) none of these
B) Market Value
C) Non Par Value
D) Par Value
E) Book Value of Stock
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) none of these
B) Accounts receivable
C) Mercantile credit
D) Commercial credit
E) All of these
  • 14. date start: May 10

    credit term: 5.5/30

    listed price: P105,000

    DATE PAID: June 15

    HOW MUCH THE DISCOUNT?
A) P99,225
B) all of these
C) none of these
D) P9,922,500
E) P5,775
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Acquisition
B) Stock option
C) Stock split
D) none of these
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) P700
B) P750
C) P1,750
D) ALL OF THESE
E) none of these
  • 17. The planning and control expenditures is referred to as______.
A) Capital expenditures
B) none of these
C) Capital budgeting
D) Capital Valuation
E) All of these
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Insurance companies
B) Sales finance companies
C) Personal finance companies
D) none of these
E) Business finance companies
  • 19. The following are example of credit bureaus except:
A) Bulletins
B) Report
C) Special Services
D) Credit guides
E) none of these
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Unearned Revenue
B) Deferred items
C) Supplies
D) Prepaid expense
E) none of these
  • 21. It is unsecured and it permits the customer to pay for goods delivered to him in a specified number of days.
A) none of these
B) Trade Acceptance
C) Open- book credit
D) Promissory note
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) All of these
B) Discount value of the anticipated cash outflow
C) none of these
D) Discount value of the anticipated cash inflow and outflow
E) Discount value of the anticipated cash inflow
  • 24. Those share of stock without a face or nominal value.
A) Par Value
B) none of these
C) Market Value
D) Book Value of Stock
E) Non Par Value
  • 25. it is a short-term promissory note, generally unsecured and which is gold through commercial paper dealer or directly to investor.
A) Finance companies
B) Commercial papers
C) none of these
D) All of these
E) Insurance companies
  • 26. Refers to the ability of the applicant to operate successfully.
A) Capital
B) Character
C) none of these
D) Capacity
E) Condition
  • 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) Working Capital
B) Income statement
C) All of these
D) none of these
E) Balance sheet
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) Discounted cash flow method
B) Payback 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) Total Capital
B) net working Capital
C) Accounts receivable requirement
D) none of these
E) Cash management
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 2
B) 5
C) none of these
D) 7
E) 10
  • 32. What is the difference between a cash surplus and a cash deficit?
A) All of these
B) A cash surplus occurs when a business has no cash, while a cash deficit occurs when a business has some cash.
C) 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.
D) none of these
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) none of these
B) P510
C) ALL OF THESE
D) P170
E) P830
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Warrant
B) Convertible Securities
C) Acquisition
D) none of these
E) Investment
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) All of these
B) FALSE
C) TRUE
D) none of these
E) Both True and False
  • 36. which of the following could be turned into cash the easiest or quickest?
A) unfinished products being manufactured
B) none of these
C) all of these
D) raw materials
E) finished product sitting in a warehouse
  • 37. current liabilities are debt that has to be paid________________.
A) to buy more working capital
B) in order to buy a current assets
C) in the next 5yrs or more
D) in the next 12 months
  • 38. Which of the following are example of sources of credit information?
A) none of these
B) Personal Interview
C) Credit guides
D) Reference
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 hire new employees
D) To invest in new projects
E) To pay bills and expenses
  • 40. The classes of Capital Expenditures may be classified into________.
A) 6
B) none of these
C) 5
D) 8
E) 10
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) none of these
B) Other investment
C) Initial Investment
D) Later investment
E) All of these
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Urgency
B) Repair
C) none of these
D) Credit
E) Risk Involved
  • 43. Commercial banks offer short-term loans which are either_________.
A) none of these
B) Secured
C) Unsecured
D) neither Secured Nor Unsecured
E) Both Secured and Unsecured
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) Deferred Stock
B) none of these
C) Preferred Stock
D) All of these
E) Common 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) No DISCOUNT
C) P5,775
D) none of these
E) P99,225
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) none of these
B) Credit Bureaus
C) References
D) Personal Interview
E) Bank
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) Strategic investment
B) Replacement investment
C) New market investment
D) Expansion 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) TRUE
B) Both True and False
C) none of these
D) All of these
E) 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) All of these
C) Long-term financing
D) none of these
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) Character
B) Capital
C) Capacity
D) Condition
E) none of these
  • 52. Why is working capital important?
A) It indicates the solvency of a company
B) It shows the liquidity of a company
C) It indicates the profitability of a company
D) It shows the market capitalization of a company
E) none of these
  • 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) P700
B) P1,750
C) ALL OF THESE
D) P750
E) NONE OF THESE
  • 54. the capital requirement of the firm may be classified into three, except:
A) Medium - term
B) Long-term
C) All of these
D) Short-term
E) none of these
  • 55. Refers to the activity that keep track of how many of the procured items needed to create a product.
A) none of these
B) Inventory Investment
C) Inventory
D) Inventory Management
E) All of these
  • 56. The following are example of stock financing advantages, which is/are not?
A) All of these
B) Stock are not interesting bearing
C) Stock issuance does not require collaterals
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) P45,500
B) P42,750
C) none of these
D) P2,250
E) ALL OF THESE
  • 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) ALL OF THESE
C) P150,650
D) P18,825
E) P106,675
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Cash Planning
B) Establishing Priorities
C) Revising Plans
D) Eliminating duplication
E) none of these
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) none of these
B) Other Investment
C) Replacement investment
D) New market investment
E) Expansion investment
  • 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) P830
B) NONE OF THESE
C) P510
D) P170
E) ALL 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) It does not entail fixed charges
C) There is no fixed maturity date attached to common stock financing
D) All of these
E) none of these
  • 64. Which of the following are not example of class of Capital Expenditures?
A) Replacement investment
B) Strategics investment
C) Environment Project
D) none of these
E) Expansion investment
  • 65. It is a sources of long-term capital.
A) Stock Financing
B) none of these
C) Common stock
D) Treasury Stock
E) Capital stock
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