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

    credit term: 15/15

    listed price: P125,500

    DATE PAID: April 5

    HOW MUCH THE DISCOUNT?
A) ALL OF THESE
B) P18,825
C) P106,675
D) P150,650
E) NONE OF THESE
  • 8. Consist of more specialized forms of credit bureaus.
A) Credit Bureaus
B) Bank
C) References
D) Credit reporting agencies
E) none of these
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) none of these
B) Bad debt cost
C) Cost of invested funds
D) Administrative cost
E) All of these
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) Trade Acceptance
B) Promissory note
C) none of these
D) All 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) P120,454.50
B) NONE OF THESE
C) ALL OF THESE
D) P120,500
E) P87,500
  • 12. The stated value in the shares of corporation stock is called
A) Non Par Value
B) Book Value of Stock
C) none of these
D) Market Value
E) Par Value
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) Mercantile credit
B) Commercial credit
C) Accounts receivable
D) All of these
E) none 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) none of these
B) P5,775
C) P99,225
D) all of these
E) P9,922,500
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Stock dividends
B) Acquisition
C) none of these
D) Stock split
E) Stock option
  • 16. Salac will buy a coffee maker that lists for P1,500 and has a trade discount of 50%. how much THE DISCOUNT?
A) none of these
B) P1,750
C) ALL OF THESE
D) P750
E) P700
  • 17. The planning and control expenditures is referred to as______.
A) All of these
B) Capital Valuation
C) Capital budgeting
D) Capital expenditures
E) none of these
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Business finance companies
B) Insurance companies
C) none of these
D) Sales finance companies
E) Personal finance companies
  • 19. The following are example of credit bureaus except:
A) Bulletins
B) Special Services
C) Credit guides
D) Report
E) none of these
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Deferred items
B) none of these
C) Supplies
D) Prepaid expense
E) Unearned Revenue
  • 21. It is unsecured and it permits the customer to pay for goods delivered to him in a specified number of days.
A) Promissory note
B) none of these
C) Open- book credit
D) All of these
E) Trade Acceptance
  • 22. sufficient working capital is needed to prevent a business from becoming insolvent.
A) false
B) true
  • 23. PVCI means____________.
A) Discount value of the anticipated cash inflow and outflow
B) Discount value of the anticipated cash outflow
C) All of these
D) none of these
E) Discount value of the anticipated cash inflow
  • 24. Those share of stock without a face or nominal value.
A) Market Value
B) Non Par Value
C) Par Value
D) Book Value of Stock
E) none of these
  • 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) none of these
C) Insurance companies
D) Commercial papers
E) All of these
  • 26. Refers to the ability of the applicant to operate successfully.
A) Character
B) none of these
C) Capital
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) Balance sheet
B) Working Capital
C) none of these
D) All of these
E) Income statement
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) Payback method
B) All of these
C) none of these
D) Average Return on Investment
E) Discounted cash flow method
  • 30. Refers to the total amount of current assets minus current liabilities.
A) net working Capital
B) Cash management
C) Accounts receivable requirement
D) none of these
E) Total Capital
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 5
B) 10
C) 7
D) none of these
E) 2
  • 32. What is the difference between a cash surplus and a cash deficit?
A) 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.
B) 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.
C) All of these
D) A cash surplus occurs when a business has no cash, while a cash deficit occurs when a business has some cash.
E) none of these
  • 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) P830
B) P170
C) ALL OF THESE
D) none of these
E) P510
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Investment
B) none of these
C) Convertible Securities
D) Warrant
E) Acquisition
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) FALSE
B) Both True and False
C) All of these
D) none of these
E) TRUE
  • 36. which of the following could be turned into cash the easiest or quickest?
A) all of these
B) unfinished products being manufactured
C) raw materials
D) none of these
E) finished product sitting in a warehouse
  • 37. current liabilities are debt that has to be paid________________.
A) in order to buy a current assets
B) in the next 12 months
C) to buy more working capital
D) in the next 5yrs or more
  • 38. Which of the following are example of sources of credit information?
A) none of these
B) Reference
C) Personal Interview
D) Credit Bureaus
E) Credit guides
  • 39. Which of the following is not a reason why businesses need cash?
A) none of these
B) To pay bills and expenses
C) To increase profits
D) To invest in new projects
E) To hire new employees
  • 40. The classes of Capital Expenditures may be classified into________.
A) 10
B) 5
C) 6
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) Initial Investment
C) none of these
D) Later investment
E) Other investment
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Urgency
B) Risk Involved
C) Repair
D) none of these
E) Credit
  • 43. Commercial banks offer short-term loans which are either_________.
A) neither Secured Nor Unsecured
B) Both Secured and Unsecured
C) Secured
D) none of these
E) Unsecured
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) none of these
B) Preferred Stock
C) Deferred 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) 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) References
C) Credit Bureaus
D) Personal Interview
E) none of these
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) New market investment
B) Expansion investment
C) Strategic investment
D) Replacement investment
E) none of these
  • 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) All of these
B) Both True and False
C) TRUE
D) FALSE
E) none of these
  • 50. Deals with the demand for and supply Short-term of funds which may either be secured or unsecured.
A) Intermediate-term financing
B) Short-term financing
C) none of these
D) All of these
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) Condition
B) Character
C) Capacity
D) none of these
E) Capital
  • 52. Why is working capital important?
A) none of these
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) 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) ALL OF THESE
C) P750
D) P1,750
E) P700
  • 54. the capital requirement of the firm may be classified into three, except:
A) Medium - term
B) All of these
C) none of these
D) Short-term
E) Long-term
  • 55. Refers to the activity that keep track of how many of the procured items needed to create a product.
A) Inventory Investment
B) none of these
C) Inventory
D) Inventory Management
E) All of these
  • 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) Stock issuance does not require collaterals
C) All of these
D) Stock are not interesting bearing
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) P42,750
B) P45,500
C) ALL OF THESE
D) none of these
E) P2,250
  • 58. date start: Mar. 22

    credit term: 15/15

    listed price: P125,500

    DATE PAID: April 5

    HOW MUCH THE DISCOUNT?
A) P18,825
B) P150,650
C) P106,675
D) NONE OF THESE
E) ALL OF THESE
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Cash Planning
B) Establishing Priorities
C) Revising Plans
D) none of these
E) Eliminating duplication
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) Expansion investment
B) New market investment
C) none of these
D) Other Investment
E) Replacement investment
  • 61. Refers to credit flowing from a large business to small business.
A) none of these
B) Interbusiness Financing
C) Inter business credit
D) All of these
E) Interbusiness credit financing
  • 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) P170
B) P830
C) P510
D) NONE OF THESE
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) There is no fixed maturity date attached to common stock financing
C) It does not entail fixed charges
D) All of these
E) none of these
  • 64. Which of the following are not example of class of Capital Expenditures?
A) none of these
B) Environment Project
C) Expansion investment
D) Strategics investment
E) Replacement investment
  • 65. It is a sources of long-term capital.
A) Stock Financing
B) none of these
C) Treasury Stock
D) Capital stock
E) Common stock
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