菲律宾郊亚鄢南星學校

Nan Sing School of Cauayan City, Incorporated

Dalupang St., Cauayan City, Isabela, Philippines 3305
Telefax No. (078) 652-2040
School ID: 400424
Final Examination
S.Y. 2019-2020
XII – Accountancy, Business, and Management
BUSINESS FINANCE

Name: ___________________________________________ Score:___________

Grade and Section: ________________________________ Date:____________

I. MULTIPLE CHOICE
Directions: Read the statements/ questions carefully. Write the letter of the correct answer on the line
provided
before the number. (15 points)

________ 1. It is the study on how to make good decisions that involve money.
a. Accounting
b. Auditing
c. Banking
d. Financing

________ 2. One among the following is not a value creating component, which is it?
a. Profit
b. Time
c. Uncertainty
d. None of the Above

________ 3. Which of the following reasons on studying finance involves the focus on strategic thinking, job
performance and profitability?
a. Accounting
b. Management
c. Marketing
d. Personal Finance

________ 4. It is the acquisition of fund at optimum cost and its utilization with minimum financial risk.
a. Capital Markets
b. Investments
c. Financial Management
d. None of the Above

________ 5. The firms where interest rates, along with stock and bond prices are determined.
a. Capital Markets
b. Investments
c. Financial Management
d. None of the Above

________ 6. This involves three essential subjects — security analysis, portfolio theory, and market analysis.
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 a. Capital Markets
b. Investments
c. Financial Management
d. None of the Above

________ 7. This concept involves the improvement of the value of the shareholders.
a. Maximizing Earning per Share
b. Profit Maximization
c. Wealth Maximization
d. Both B and C

________ 8. It provides efficient allocation of resources.

a. Maximizing Earning per Share
b. Profit Maximization
c. Wealth Maximization
d. Both B and C

________ 9. It considers both time and risk of the business concern.

a. Maximizing Earning per Share
b. Profit Maximization
c. Wealth Maximization
d. Both B and C

________ 10. It ensures the social needs/ the interest of the society.
a. Maximizing Earning per Share
b. Profit Maximization
c. Wealth Maximization
d. Both B and C

________ 11. It deals with finding the proper values of individual securities.
a. Financial Analysis
b. Market Analysis
c. Portfolio Analysis
d. Security Analysis

________ 12. It deals with the issue of whether stock and bond markets at any given time are too high, too low
or just right.
a. Financial Analysis
b. Market Analysis
c. Portfolio Analysis
d. Security Analysis

________ 13. It deals with the best way to structure individual.

a. Financial Analysis
b. Market Analysis
c. Portfolio Analysis
d. Security Analysis

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________ 14. What are the two pillars of finance?
a. Profit and Wealth
b. Risk and Return
c. Supply and Demand
d. Time and Uncertainty

________ 15. Which of the following does not involve the procurement of funds and their optimal utilization?
a. Dividend
b. Investment
c. Marketing
d. Working Capital Decicions

II. MODIFIED TRUE OR FALSE

Directions: Read the statements carefully. On the lines provided, write TRUE if the given statement is
correct, otherwise write FALSE and underline the word/phrase which makes the statement
incorrect.
(40 points)

________ 16 - 17. Financial Decisions are crucial for the survival of the firm.

________ 18 - 19. Centralization of the finance functions can result in a number of losses to the firm.

________ 20 - 21. The finance functions must fall under the hands of the top management.

________ 22 - 23. Both partners in partnership always have unlimited liability.

________ 24 - 25. Corporation ends when the owner dies or terminates the business.

________ 26 - 27. Financial plan should be drafted in terms of the purpose for which the enterprise is organized.
It should contain a simple financial structure that can be implemented and managed easily and
understood clearly by all. In short the number of securities should be the minimum possible

________ 28 - 29. A bountiful use of capital is almost as bad as inadequate capital.

________ 30 - 31. Liquidity means the availability of cash for the concern whenever require, for making
payments on dates when they are due.

________ 32 - 33. Planning is a systematic way of deciding about and doing things in a purposeful manner.

________ 34 - 35. A finance manager ensures that the abundant financial resources are minimally utilized in the
best possible manner at least cost in order to get maximum returns on investment.

________ 36 - 37. Financial Planning reduces uncertainties with regards to changing market trends which can be
faced easily through enough funds.

________ 38 - 39. Sales budget, production budget, direct material budget, factory overhead budget, selling and
administrative expense budget, and pro forma income statements are all given examples of the
types of budget.

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________ 40 - 41. A comprehensive budget is a formal statement of management's expectation for sales,
expenses, volume, and, other financial transactions for the coming period.

________ 42 - 43. The more that is sold on credit, the higher the proportion of assets ttha are tied up in accounts
receivable.

________ 44 - 45. Character, capability, capital, collateral, and conditions are the five Cs of credit.

________ 46 - 47. Limited partners may not participate in management decisions.

________ 48 - 49. In corporations, investors liability is restricted to amount of investment in company.

________ 50 - 51. S corporations are special designations that allow small businesses that meet qualifications to
be taxed as if they were a proprietorship or partnership rather than a corporation.

________ 52 - 53. Corporations larger than S corporations are called L corporations.

________ 54 - 55. Financial actions determine the solvency of the firm.

III. CLASSIFICATION
Direction: Read the statement/ question carefully. Tell whether the following roles are done by the
FINANCIAL MANAGER, TREASURE, or CONTROLLER. Write your answers on the lines
provided before each number. (10 points)

_______________ 56. Capital Budgeting _______________ 61. Obtaining Finance

_______________ 57. Forecasting Cashflows _______________ 62. Taxation

_______________ 58. Banking Relationship _______________ 63. Management Control

_______________ 59. Raising Funds _______________ 64. Profit Planning

_______________ 60. Management Accounting _______________ 65. Facilitate Pricing of

Funds

IV. CONSTRUCTIVE RESPONSE

Direction: Read the statement carefully. Write a short response regarding the question. Write your answer
on the lines provided. (10 points)

66-70. How will you live your own life if the earth has not much time to exist?

__________________________________________________________________________________________
__________________________________________________________________________________________
_____________________________________________________________________.

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71-75. “Life is a big act” as they say. What do you think are your roles in life and how do you ensure that you
are playing these parts well?

__________________________________________________________________________________________
__________________________________________________________________________________________
_____________________________________________________________________.

Prepared by:

JONATHAN M. BELTRAN JR.

Teacher

Checked by: Noted by:

AILENE M. BERNARDO, LPT MARLON J. COLOMA, MA.Ed.

Senior High School Coordinator Principal

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