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  • 1. This details the requesting entity's justification for undertaking the proposal
A) All of these
B) Supporting Documentation Section
C) Request and authority section
D) none 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) Market Value
B) Non Par Value
C) Book Value
D) Par 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) true
B) false
  • 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) Profitability
C) none of these
D) Liquidity
E) Solvency
  • 5. Which of the following are not example of advantages of short-term credit?
A) all of these
B) Short-term financing offer flexibility to the borrower
C) Short-term financing is often less costly
D) none of these
E) They are easier to obtain
  • 6. It is a right given by the corporation to an individual allowing him.
A) Stock option
B) Stock Splits
C) Stock dividends
D) Acquisition
E) none of these
  • 7. date start: Mar. 22

    credit term: 15/15

    listed price: P125,500

    DATE PAID: April 5

    HOW MUCH THE DISCOUNT?
A) P18,825
B) NONE OF THESE
C) P106,675
D) P150,650
E) ALL OF THESE
  • 8. Consist of more specialized forms of credit bureaus.
A) none of these
B) References
C) Credit reporting agencies
D) Bank
E) Credit Bureaus
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) Bad debt cost
B) Administrative cost
C) All of these
D) none of these
E) Cost of invested funds
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) none of these
B) Open-book credit
C) Trade Acceptance
D) Promissory note
E) All of these
  • 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) P120,454.50
C) P87,500
D) ALL OF THESE
E) NONE OF THESE
  • 12. The stated value in the shares of corporation stock is called
A) Par Value
B) Market Value
C) Book Value of Stock
D) none of these
E) Non Par Value
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) none of these
B) All 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) P5,775
B) all of these
C) P99,225
D) P9,922,500
E) none of these
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Stock dividends
B) Stock option
C) Stock split
D) Acquisition
E) none of these
  • 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) P700
D) none of these
E) P1,750
  • 17. The planning and control expenditures is referred to as______.
A) Capital budgeting
B) Capital expenditures
C) Capital Valuation
D) none of these
E) All of these
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) none of these
B) Personal finance companies
C) Sales finance companies
D) Business finance companies
E) Insurance companies
  • 19. The following are example of credit bureaus except:
A) none of these
B) Special Services
C) Bulletins
D) Report
E) Credit guides
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) none of these
B) Unearned Revenue
C) Supplies
D) Prepaid expense
E) Deferred items
  • 21. It is unsecured and it permits the customer to pay for goods delivered to him in a specified number of days.
A) Open- book credit
B) none of these
C) Trade Acceptance
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) Discount value of the anticipated cash inflow and outflow
B) Discount value of the anticipated cash inflow
C) none of these
D) Discount value of the anticipated cash outflow
E) All of these
  • 24. Those share of stock without a face or nominal value.
A) Par Value
B) Book Value of Stock
C) Non Par Value
D) none of these
E) Market Value
  • 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) none of these
D) Commercial papers
E) Finance companies
  • 26. Refers to the ability of the applicant to operate successfully.
A) Capacity
B) Capital
C) none of these
D) Character
E) Condition
  • 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) All of these
D) Working Capital
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) All of these
C) Payback method
D) none of these
E) Average Return on Investment
  • 30. Refers to the total amount of current assets minus current liabilities.
A) none of these
B) Cash management
C) Total Capital
D) Accounts receivable requirement
E) net working Capital
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 7
B) none of these
C) 10
D) 2
E) 5
  • 32. What is the difference between a cash surplus and a cash deficit?
A) A cash surplus occurs when a business has no cash, while a cash deficit occurs when a business has some cash.
B) none of these
C) All of these
D) 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.
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) P170
B) ALL OF THESE
C) P830
D) none of these
E) P510
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Acquisition
B) Convertible Securities
C) Warrant
D) Investment
E) none of these
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) none of these
B) Both True and False
C) All of these
D) FALSE
E) TRUE
  • 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 order to buy a current assets
B) to buy more working capital
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) Credit guides
B) Personal Interview
C) none of these
D) Credit Bureaus
E) Reference
  • 39. Which of the following is not a reason why businesses need cash?
A) To increase profits
B) none of these
C) To invest in new projects
D) To pay bills and expenses
E) To hire new employees
  • 40. The classes of Capital Expenditures may be classified into________.
A) 6
B) 10
C) 5
D) none of these
E) 8
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) All of these
B) none of these
C) Later investment
D) Initial Investment
E) Other investment
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Repair
B) none of these
C) Risk Involved
D) Credit
E) Urgency
  • 43. Commercial banks offer short-term loans which are either_________.
A) none of these
B) Secured
C) neither Secured Nor Unsecured
D) Unsecured
E) Both Secured and Unsecured
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) Preferred Stock
B) All of these
C) Common Stock
D) Deferred Stock
E) none of these
  • 45. date start: July 31

    credit term: 5.5/30

    listed price: P105,000

    DATE PAID: Aug. 31

    HOW MUCH THE DISCOUNT?
A) No DISCOUNT
B) P9,922,500
C) none of these
D) P99,225
E) P5,775
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Bank
B) Credit Bureaus
C) Personal Interview
D) References
E) none of these
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) none of these
B) Expansion investment
C) Replacement investment
D) Strategic investment
E) New market investment
  • 48. THE GOAL OF WORKING CAPITAL MANAGEMENT IS TO ENSURE ADEQUATE CASH FLOW FOR OPERATIONS.
A) true
B) FALSE
  • 49. Accrued taxes normally takes a longer time lag before payment becomes due.
A) FALSE
B) none of these
C) All of these
D) Both True and False
E) TRUE
  • 50. Deals with the demand for and supply Short-term of funds which may either be secured or unsecured.
A) none of these
B) All of these
C) Short-term financing
D) Intermediate-term financing
E) Long-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) none of these
B) Capital
C) Capacity
D) Condition
E) Character
  • 52. Why is working capital important?
A) It indicates the profitability of a company
B) It shows the liquidity of a company
C) none of these
D) It shows the market capitalization of a company
E) It indicates the solvency 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) NONE OF THESE
B) P700
C) P1,750
D) ALL OF THESE
E) P750
  • 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) Inventory Management
B) All of these
C) none of these
D) Inventory Investment
E) Inventory
  • 56. The following are example of stock financing advantages, which is/are not?
A) It does not burden the company with redeeming the stock at given date
B) none of these
C) Stock are not interesting bearing
D) Stock issuance does not require collaterals
E) All 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) P42,750
C) ALL OF THESE
D) P45,500
E) none of these
  • 58. date start: Mar. 22

    credit term: 15/15

    listed price: P125,500

    DATE PAID: April 5

    HOW MUCH THE DISCOUNT?
A) P106,675
B) NONE OF THESE
C) P18,825
D) ALL OF THESE
E) P150,650
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Cash Planning
B) Revising Plans
C) Establishing Priorities
D) Eliminating duplication
E) none of these
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) Replacement investment
B) New market investment
C) none of these
D) Expansion investment
E) Other Investment
  • 61. Refers to credit flowing from a large business to small business.
A) none of these
B) All of these
C) Interbusiness Financing
D) Interbusiness credit financing
E) Inter business credit
  • 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) P170
C) ALL OF THESE
D) P510
E) NONE OF THESE
  • 63. Common stock financing has certain advantages which one is not?
A) There is no fixed maturity date attached to common stock financing
B) none of these
C) All of these
D) There are times when common stock is easier to sell then debt.
E) It does not entail fixed charges
  • 64. Which of the following are not example of class of Capital Expenditures?
A) none of these
B) Expansion investment
C) Replacement investment
D) Environment Project
E) Strategics investment
  • 65. It is a sources of long-term capital.
A) Common stock
B) none of these
C) Treasury Stock
D) Capital stock
E) Stock Financing
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