elect01
  • 1. This details the requesting entity's justification for undertaking the proposal
A) none of these
B) Request and authority section
C) Narratives Section
D) All of these
E) Supporting Documentation 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) none of these
B) Market Value
C) Book Value
D) Non Par Value
E) Par 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) All of these
B) Solvency
C) Liquidity
D) none of these
E) Profitability
  • 5. Which of the following are not example of advantages of short-term credit?
A) Short-term financing offer flexibility to the borrower
B) They are easier to obtain
C) all of these
D) none of these
E) Short-term financing is often less costly
  • 6. It is a right given by the corporation to an individual allowing him.
A) Stock dividends
B) none of these
C) Stock option
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) P150,650
B) NONE OF THESE
C) P18,825
D) P106,675
E) ALL OF THESE
  • 8. Consist of more specialized forms of credit bureaus.
A) Credit Bureaus
B) none of these
C) References
D) Credit reporting agencies
E) Bank
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) none of these
B) Bad debt cost
C) Cost of invested funds
D) All of these
E) Administrative cost
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) none of these
B) Trade Acceptance
C) All of these
D) Promissory note
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) P120,454.50
C) ALL OF THESE
D) P87,500
E) NONE OF THESE
  • 12. The stated value in the shares of corporation stock is called
A) Book Value of Stock
B) Par Value
C) Non Par Value
D) none of these
E) Market 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) P9,922,500
B) none of these
C) P99,225
D) P5,775
E) all of these
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Stock split
B) Stock dividends
C) none of these
D) Acquisition
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) P1,750
B) P700
C) ALL OF THESE
D) none of these
E) P750
  • 17. The planning and control expenditures is referred to as______.
A) Capital Valuation
B) Capital expenditures
C) Capital budgeting
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) Sales finance companies
C) Business finance companies
D) Insurance companies
E) Personal finance companies
  • 19. The following are example of credit bureaus except:
A) Report
B) Special Services
C) Bulletins
D) Credit guides
E) none of these
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) none of these
B) Deferred items
C) Unearned Revenue
D) Prepaid expense
E) Supplies
  • 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) false
B) true
  • 23. PVCI means____________.
A) Discount value of the anticipated cash outflow
B) All of these
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) Non Par Value
C) Book Value of Stock
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) none of these
B) Capital
C) Condition
D) Character
E) Capacity
  • 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) Income statement
B) Balance sheet
C) All of these
D) Working Capital
E) none of these
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) All of these
B) none of these
C) Payback method
D) Average Return on Investment
E) Discounted cash flow method
  • 30. Refers to the total amount of current assets minus current liabilities.
A) Total Capital
B) net working Capital
C) none of these
D) Cash management
E) Accounts receivable requirement
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 5
B) 7
C) 2
D) 10
E) none of these
  • 32. What is the difference between a cash surplus and a cash deficit?
A) none 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) All 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) P830
B) P170
C) none of these
D) P510
E) ALL OF THESE
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Warrant
B) none of these
C) Investment
D) Acquisition
E) Convertible Securities
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) Both True and False
B) FALSE
C) none of these
D) All of these
E) TRUE
  • 36. which of the following could be turned into cash the easiest or quickest?
A) unfinished products being manufactured
B) none of these
C) raw materials
D) all of these
E) finished product sitting in a warehouse
  • 37. current liabilities are debt that has to be paid________________.
A) in the next 5yrs or more
B) in order to buy a current assets
C) to buy more working capital
D) in the next 12 months
  • 38. Which of the following are example of sources of credit information?
A) Personal Interview
B) Credit guides
C) Credit Bureaus
D) Reference
E) none of these
  • 39. Which of the following is not a reason why businesses need cash?
A) none of these
B) To hire new employees
C) To increase profits
D) To pay bills and expenses
E) To invest in new projects
  • 40. The classes of Capital Expenditures may be classified into________.
A) none of these
B) 8
C) 10
D) 5
E) 6
  • 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) Other investment
E) Initial Investment
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Urgency
B) none of these
C) Risk Involved
D) Repair
E) Credit
  • 43. Commercial banks offer short-term loans which are either_________.
A) Unsecured
B) neither Secured Nor Unsecured
C) Secured
D) Both Secured and Unsecured
E) none of these
  • 44. ________is that class of stock issued by all corporations and which represents the real equity capital.
A) Preferred Stock
B) Deferred Stock
C) Common Stock
D) All of these
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) P99,225
C) P5,775
D) none of these
E) P9,922,500
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Credit Bureaus
B) References
C) Bank
D) Personal Interview
E) none of these
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) Strategic investment
B) Expansion investment
C) Replacement investment
D) New market 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) FALSE
B) Both True and False
C) All of these
D) TRUE
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) All of these
D) none 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) Capacity
B) Condition
C) none of these
D) Capital
E) Character
  • 52. Why is working capital important?
A) It indicates the solvency of a company
B) It shows the market capitalization of a company
C) none of these
D) It indicates the profitability of a company
E) It shows the liquidity 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) P700
B) ALL OF THESE
C) P750
D) P1,750
E) NONE OF THESE
  • 54. the capital requirement of the firm may be classified into three, except:
A) All of these
B) Long-term
C) Medium - term
D) none of these
E) Short-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) Inventory
C) none of these
D) All of these
E) Inventory Investment
  • 56. The following are example of stock financing advantages, which is/are not?
A) Stock issuance does not require collaterals
B) All of these
C) none of these
D) It does not burden the company with redeeming the stock at given date
E) Stock are not interesting bearing
  • 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) P106,675
B) P18,825
C) ALL OF THESE
D) P150,650
E) NONE OF THESE
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Revising Plans
B) Cash Planning
C) none of these
D) Eliminating duplication
E) Establishing Priorities
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) Other Investment
B) Replacement investment
C) Expansion investment
D) none of these
E) New market investment
  • 61. Refers to credit flowing from a large business to small business.
A) Interbusiness credit financing
B) Interbusiness Financing
C) none of these
D) Inter business credit
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) P170
B) P510
C) P830
D) NONE OF THESE
E) ALL OF THESE
  • 63. Common stock financing has certain advantages which one is not?
A) It does not entail fixed charges
B) All of these
C) none of these
D) There is no fixed maturity date attached to common stock financing
E) There are times when common stock is easier to sell then debt.
  • 64. Which of the following are not example of class of Capital Expenditures?
A) Replacement investment
B) Environment Project
C) none of these
D) Expansion investment
E) Strategics investment
  • 65. It is a sources of long-term capital.
A) Treasury Stock
B) none of these
C) Common stock
D) Capital stock
E) Stock Financing
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