It is the science of managing and creating money

a. Marketing

b. Finance

c. Operations

d. Human Resource

It is the activities of a firm attempting to raise capital.

a. Financial Management

b. Finance

c. Financial Market

d. Financial Intermediary

It is concerned with maximizing shareholder value.

a. Public Finance

b. Personal Finance

c. Corporate Finance

d. Cooperative Finance

Refers to efficient and effective management of money.

a. Financial Management

b. Finance

c. Financial Market

d. Financial Intermediary

Is a market in which people and entities can trade financial securities.

a. Financial Market

b. Capital Market

c. Corporate Market

d. Money Market

The study of the role of the government in the economy.

a. Public Finance

b. Personal Finance

c. Corporate Finance
 d. Cooperative Finance

Asset or item that is purchased with the hope that it will generate income or appreciate in the future.

a. Investments

b. Securities

c. Money

d. None of the above

Refers to lending by ultimate borrower with no intermediary.

a. Public Financing

b. Personal Financing

c. Direct Financing

d. Indirect Financing

It covers an individual’s or family unit’s budget.

a. Public Finance

b. Personal Finance

c. Corporate Finance

d. Cooperative Finance

Refers to lending by an ultimate lender to a financial intermediary that then relend to the ultimate
borrower.

a. Public Financing

b. Personal Financing

c. Direct Financing

d. Indirect Financing

____ sell certificates that are labelled as an investment shares and also accept deposits

a. Commercial Bank

b. Cooperative Bank

c. Industrial Bank

d. Investment Bank
_______ It is a financial market in where the participants are provided with the issuance and trading
of debt securities

a. Bond Market

b. Primary Market

c. Secondary Market

d. Spot Market

_____ It is one who acts as an intermediary between buyers and sellers but does not take the title of
the securities traded.

a. Broker

b. Dealer

c. Investment broker

d. Private placement

_______ It is a type of insurance that can reimburse the insured for the expenses incurred from
illness or injury, or pay the care provider directly

a. Auto insurance

b. Health Insurance

c. Long term Disability Insurance

d. Self Insurance

.________ It is designed as a tool to accumulate funds for an individual retirement it can actually be
used to save for other goals

a. Car plan

b. Educational plan

c. Memorial plan

d. Pension plan

________ It is a type of bank that authorized to engage in underwriting and other functions of
investment house.

a. Central bank

b. Commercial bank

c. Thrift bank

d. Universal bank
When did the Pre-need companies started in the Philippines?

a. 1964

b. 1965

c. 1966

d. 1967

Which of the following excludes from the quick ratio?

a. Accounts Receivable

b. Cash

c. Inventory

d. Supplies

Which of the following is used as a denominator in determining the income statement percentages
under vertical analysis?

a. Capital

b. Net income

c. Sales

d. Total assets

____It refers to lending by ultimate borrower with no intermediary.

a. Direct financing

b. Indirect financing

c. Personal financing

d. Public financing

What does the accounts receivable turnover ratio interprets?

a. Accounts receivable is at the end of a period

b. Bad debt balances at year end

c. How many times average accounts receivable is collected

d. How often accounts receivable is received

If the Current ratio is 1.7, what is the total Accounts Receivable if Cash is Php 20,000, Inventory is
Php 7,500, and Accounts Payable is Php 30,000

a. Php 39,500

b. Php 23,500

c. Php 26,500

d. Php 43,500

Computation:
Current ratio = 1.7

Current asset = ?

Current liabilities = 30,000

Accounts receivable = ?

Current assets =?

= (1.7)(30,000) = 51,000

Current assets = 51,000 – 20,000 – 7,500

Accounts receivable = 23,500

For its most recent year a company had Sales (all on credit) or 820,000 and Cost of Goods Sold of
615,000. At the beginning of the year its Accounts Receivable were 60,000 and its Inventory was
100,000. At the end of the year its Accounts Receivable were 76,000 and its inventory was 105,000.
What is the firm’s accounts receivable turnover?

a. 12 times

b. 12.05 times

c. 12.06 times

d. 12.1 times

Computation:
A.R Turnover = Net credit sales/ Ave. Accounts Receivable

= 820,000/ 68,000 *

= 12.06 times

*Beg 60,000 + End 76,000 = 136,000/2

= 68,000
For its most recent year a company had Sales (all on credit) or 820,000 and Cost of Goods Sold of
615,000. At the beginning of the year its Accounts Receivable were 60,000 and its Inventory was
100,000. At the end of the year its Accounts Receivable were 76,000 and its inventory was 105,000.
How many days of sales were in Inventory during the year?

a. 59.1 days

b. 60 days

c. 60.8 days

d. 61 days

Computation:
Invty. Turnover = COGS/Ave. Inventory
= 615,000 / 102,500*
= 6.03 times
*Beg invty 100,000 + end 105, 000 = 205,000/2
=102,500
Days of sale in invty = 365/ Invty turnover
= 365/ 6.03
= 61 days