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elect01
Contributed by: Ann
  • 1. This details the requesting entity's justification for undertaking the proposal
A) Narratives Section
B) Supporting Documentation Section
C) none of these
D) Request and authority section
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) Book Value
C) none of these
D) Market Value
E) Non Par Value
  • 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) none of these
C) All of these
D) Solvency
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) none of these
C) Short-term financing is often less costly
D) all of these
E) They are easier to obtain
  • 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) Acquisition
E) Stock Splits
  • 7. 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) P150,650
D) ALL OF THESE
E) P18,825
  • 8. Consist of more specialized forms of credit bureaus.
A) Credit Bureaus
B) none of these
C) References
D) Bank
E) Credit reporting agencies
  • 9. Refers to accounts receivable uncollected and subsequently written off.
A) Bad debt cost
B) Cost of invested funds
C) Administrative cost
D) All of these
E) none of these
  • 10. Is a time draft drawn by a seller upon a purchaser payable to the seller as payee.
A) Trade Acceptance
B) none of these
C) Promissory note
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) ALL OF THESE
B) NONE OF THESE
C) P87,500
D) P120,500
E) P120,454.50
  • 12. The stated value in the shares of corporation stock is called
A) Par Value
B) Book Value of Stock
C) Market Value
D) Non Par Value
E) none of these
  • 13. Credit extended by trade creditors in short-term is usually unsecured, and also know as
A) All of these
B) Accounts receivable
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) P5,775
B) none of these
C) all of these
D) P9,922,500
E) P99,225
  • 15. Refers to dividends paid in the company's own stock, including treasury stock.
A) Stock dividends
B) Stock split
C) Stock option
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) P1,750
B) P750
C) none of these
D) P700
E) ALL OF THESE
  • 17. The planning and control expenditures is referred to as______.
A) Capital expenditures
B) none of these
C) All of these
D) Capital Valuation
E) Capital budgeting
  • 18. Finance companies which are engaged principally in personal loans are called_______.
A) Insurance companies
B) Sales finance companies
C) none of these
D) Business finance companies
E) Personal finance companies
  • 19. The following are example of credit bureaus except:
A) Special Services
B) none of these
C) Credit guides
D) Bulletins
E) Report
  • 20. Gross working capital of the firm is usually composed of the following, Except:
A) Supplies
B) none of these
C) Unearned Revenue
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) Trade Acceptance
B) All of these
C) none of these
D) Open- book credit
E) Promissory note
  • 22. sufficient working capital is needed to prevent a business from becoming insolvent.
A) false
B) true
  • 23. PVCI means____________.
A) none of these
B) Discount value of the anticipated cash outflow
C) All 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) Book Value of Stock
B) none of these
C) Market Value
D) Par Value
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) Commercial papers
B) All of these
C) Finance companies
D) Insurance companies
E) none of these
  • 26. Refers to the ability of the applicant to operate successfully.
A) Condition
B) none of these
C) Capital
D) Capacity
E) Character
  • 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) Working Capital
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) Payback method
B) none of these
C) Average Return on Investment
D) Discounted cash flow method
E) All of these
  • 30. Refers to the total amount of current assets minus current liabilities.
A) net working Capital
B) Total Capital
C) Accounts receivable requirement
D) none of these
E) Cash management
  • 31. The objectives off the Capital Budgeting are classified into______.
A) 7
B) 10
C) none of these
D) 2
E) 5
  • 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) 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.
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) none of these
B) ALL OF THESE
C) P170
D) P830
E) P510
  • 34. Refers to the purchase of any assets or the undertaking of any commitment.
A) Investment
B) Acquisition
C) Convertible Securities
D) Warrant
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) TRUE
D) FALSE
E) All of these
  • 36. which of the following could be turned into cash the easiest or quickest?
A) none of these
B) unfinished products being manufactured
C) all of these
D) finished product sitting in a warehouse
E) raw materials
  • 37. current liabilities are debt that has to be paid________________.
A) in the next 5yrs or more
B) to buy more working capital
C) in the next 12 months
D) in order to buy a current assets
  • 38. Which of the following are example of sources of credit information?
A) Reference
B) Credit guides
C) Personal Interview
D) none of these
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 pay bills and expenses
D) To invest in new projects
E) To hire new employees
  • 40. The classes of Capital Expenditures may be classified into________.
A) 10
B) 6
C) 8
D) none of these
E) 5
  • 41. Refers to the amount that has been devoted to a project until it generates cash inflows from operation.
A) Initial Investment
B) Other investment
C) Later investment
D) All of these
E) none of these
  • 42. Decision should be made as quickly as possible for requirement that are urgent.
A) Credit
B) Repair
C) none of these
D) Urgency
E) Risk Involved
  • 43. Commercial banks offer short-term loans which are either_________.
A) Secured
B) none of these
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) All of these
B) Deferred Stock
C) Preferred Stock
D) Common 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) P99,225
C) P9,922,500
D) none of these
E) P5,775
  • 46. Refers to the institutions organized for the exchanges of ledger information among associated creditors
A) Credit Bureaus
B) References
C) none of these
D) Personal Interview
E) Bank
  • 47. Refers to investment on replacement of worn-out or obsolete facilities.
A) New market investment
B) Expansion investment
C) Strategic investment
D) none of these
E) Replacement investment
  • 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) FALSE
B) All of these
C) TRUE
D) Both True and 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) Long-term financing
B) Short-term financing
C) none of these
D) All 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) none of these
B) Condition
C) Capital
D) Capacity
E) Character
  • 52. Why is working capital important?
A) It shows the market capitalization of a company
B) It indicates the solvency 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) P750
B) P700
C) ALL OF THESE
D) P1,750
E) NONE OF THESE
  • 54. the capital requirement of the firm may be classified into three, except:
A) none of these
B) Medium - term
C) All 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) All of these
B) none of these
C) Inventory Management
D) Inventory Investment
E) Inventory
  • 56. The following are example of stock financing advantages, which is/are not?
A) none of these
B) All of these
C) Stock issuance does not require collaterals
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) P2,250
B) none of these
C) P42,750
D) P45,500
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) P150,650
B) NONE OF THESE
C) ALL OF THESE
D) P18,825
E) P106,675
  • 59. The following are example of objectives of Capital Budgeting, Except:
A) Establishing Priorities
B) Eliminating duplication
C) Cash Planning
D) Revising Plans
E) none of these
  • 60. This catch all term includes office buildings, parking lots, execute aircraft.
A) New market investment
B) Other Investment
C) none of these
D) Replacement investment
E) Expansion investment
  • 61. Refers to credit flowing from a large business to small business.
A) none of these
B) Interbusiness credit financing
C) Inter business credit
D) Interbusiness 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) P170
B) ALL OF THESE
C) P830
D) P510
E) NONE OF THESE
  • 63. Common stock financing has certain advantages which one is not?
A) none of these
B) There is no fixed maturity date attached to common stock financing
C) There are times when common stock is easier to sell then debt.
D) It does not entail fixed charges
E) All of these
  • 64. Which of the following are not example of class of Capital Expenditures?
A) Replacement investment
B) Environment Project
C) Expansion investment
D) none of these
E) Strategics investment
  • 65. It is a sources of long-term capital.
A) Capital stock
B) none of these
C) Common stock
D) Treasury Stock
E) Stock Financing
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