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elect01
Contributed by: Ann
  • 1. This details the requesting entity's justification for undertaking the proposal
A) Request and authority section
B) none of these
C) All of these
D) Narratives Section
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) 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) true
B) false
  • 4. Refers to the ability of the firm to pay its bills on times or otherwise meet its current obligation.
A) Liquidity
B) Solvency
C) Profitability
D) All of these
E) none of these
  • 5. Which of the following are not example of advantages of short-term credit?
A) Short-term financing offer flexibility to the borrower
B) Short-term financing is often less costly
C) none of these
D) They are easier to obtain
E) all of these
  • 6. It is a right given by the corporation to an individual allowing him.
A) Stock dividends
B) Acquisition
C) Stock option
D) Stock Splits
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) P150,650
B) P18,825
C) ALL OF THESE
D) NONE OF THESE
E) P106,675
  • 8. Consist of more specialized forms of credit bureaus.
A) none of these
B) Credit reporting agencies
C) Credit Bureaus
D) Bank
E) References
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) Administrative cost
B) Cost of invested funds
C) All of these
D) Bad debt cost
E) none of these
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) All of these
B) Trade Acceptance
C) Promissory note
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) P120,454.50
B) P87,500
C) NONE OF THESE
D) ALL OF THESE
E) P120,500
  • 12. The stated value in the shares of corporation stock is called
A) Par Value
B) Book Value of Stock
C) none of these
D) Market Value
E) Non Par Value
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) Accounts receivable
B) All of these
C) none of these
D) Commercial credit
E) Mercantile credit
  • 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) P9,922,500
C) all of these
D) P5,775
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) none of these
E) Acquisition
  • 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 expenditures
B) Capital budgeting
C) none of these
D) Capital Valuation
E) All of these
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Personal finance companies
B) Sales finance companies
C) Business finance companies
D) Insurance companies
E) none of these
  • 19. The following are example of credit bureaus except:
A) Report
B) Special Services
C) none of these
D) Credit guides
E) Bulletins
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) none of these
B) Unearned Revenue
C) Deferred items
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) All of these
B) Trade Acceptance
C) Promissory note
D) none of these
E) Open- book credit
  • 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) Discount value of the anticipated cash inflow and outflow
C) none of these
D) All 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) Par Value
C) none of these
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) All of these
B) Commercial papers
C) Insurance companies
D) none of these
E) Finance 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) CREDITOR
B) DEBTOR
  • 28. The formula of CURRENT ASSETS - CURRENT LIABILITIES =___________ What account title?
A) none of these
B) Working Capital
C) Balance sheet
D) All of these
E) Income statement
  • 29. Determine the number of years required to recover the cash investment made on a project.
A) Discounted cash flow method
B) none of these
C) Average Return on Investment
D) Payback method
E) All of these
  • 30. Refers to the total amount of current assets minus current liabilities.
A) Accounts receivable requirement
B) Total Capital
C) none of these
D) net working Capital
E) Cash management
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 10
B) 5
C) none of these
D) 2
E) 7
  • 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 less cash than it needs, while a cash deficit occurs when a business has more cash than it needs.
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) 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) P510
B) P170
C) none of these
D) ALL OF THESE
E) P830
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Warrant
B) Acquisition
C) none of these
D) Convertible Securities
E) Investment
  • 35. Insurance companies normally invest on short- term commercial papers and promissory notes.
A) TRUE
B) FALSE
C) none of these
D) Both True and False
E) All of these
  • 36. which of the following could be turned into cash the easiest or quickest?
A) none of these
B) all of these
C) finished product sitting in a warehouse
D) unfinished products being manufactured
E) raw materials
  • 37. current liabilities are debt that has to be paid________________.
A) to buy more working capital
B) in the next 5yrs or more
C) in order to buy a current assets
D) in the next 12 months
  • 38. Which of the following are example of sources of credit information?
A) Credit guides
B) Credit Bureaus
C) Personal Interview
D) none of these
E) Reference
  • 39. Which of the following is not a reason why businesses need cash?
A) To pay bills and expenses
B) To invest in new projects
C) To increase profits
D) none of these
E) To hire new employees
  • 40. The classes of Capital Expenditures may be classified into________.
A) 8
B) 6
C) 5
D) none of these
E) 10
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) All of these
B) Other investment
C) Later investment
D) none of these
E) Initial Investment
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Repair
B) Urgency
C) none of these
D) Risk Involved
E) Credit
  • 43. Commercial banks offer short-term loans which are either_________.
A) none of these
B) neither Secured Nor Unsecured
C) Unsecured
D) Both Secured and Unsecured
E) Secured
  • 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) Common Stock
E) All 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) P5,775
B) P99,225
C) P9,922,500
D) No DISCOUNT
E) none of these
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Personal Interview
B) none of these
C) Credit Bureaus
D) References
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) none of these
E) Expansion 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) TRUE
B) none of these
C) FALSE
D) Both True and False
E) All of these
  • 50. Deals with the demand for and supply Short-term of funds which may either be secured or unsecured.
A) All of these
B) Long-term financing
C) Intermediate-term financing
D) none of these
E) Short-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) Capacity
C) none of these
D) Condition
E) Capital
  • 52. Why is working capital important?
A) It indicates the profitability of a company
B) It indicates the solvency of a company
C) It shows the liquidity of a company
D) none of these
E) It shows the market capitalization 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) P750
C) ALL OF THESE
D) NONE OF THESE
E) P1,750
  • 54. the capital requirement of the firm may be classified into three, except:
A) none of these
B) All of these
C) Long-term
D) Short-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) none of these
B) Inventory
C) Inventory Investment
D) All of these
E) Inventory Management
  • 56. The following are example of stock financing advantages, which is/are not?
A) Stock are not interesting bearing
B) Stock issuance does not require collaterals
C) none of these
D) All of these
E) It does not burden the company with redeeming the stock at given date
  • 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) 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) 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) Establishing Priorities
B) none of these
C) Eliminating duplication
D) Revising Plans
E) Cash Planning
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) none of these
B) Expansion investment
C) Replacement investment
D) New market investment
E) Other Investment
  • 61. Refers to credit flowing from a large business to small business.
A) Interbusiness Financing
B) Interbusiness credit financing
C) Inter business credit
D) none of these
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) NONE OF THESE
B) P510
C) P170
D) P830
E) ALL OF THESE
  • 63. Common stock financing has certain advantages which one is not?
A) All of these
B) none of these
C) There is no fixed maturity date attached to common stock financing
D) It does not entail fixed charges
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) Expansion investment
B) Replacement investment
C) Environment Project
D) none of these
E) Strategics investment
  • 65. It is a sources of long-term capital.
A) Capital stock
B) Treasury Stock
C) none of these
D) Common stock
E) Stock Financing
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