Business Finance

Quiz 1

Name
Year & Section
Date

Multiple Choice

1. What is a financial intermediary handling individual savings which receives premium

payments placed in loans or investments to accumulate funds to cover future benefits?
A. life insurance company
B. commercial bank
C. mutual funds
D. credit union

2. Which is said to be a set up so that employees of corporations or governments can

receive income after retirement?
A. life insurance company
B. Savings bank
C. Pension fund
D. credit union

3. What is the science and art of managing money?

A. Financial Management
B. Management
C. Finance
D. Personal Finance

4. Which of the following is the amount to be received from customers who purchased
goods on credit?
A. Accounts Payable
B. Accounts Receivable
C. Accounts Statement
D. Cash flow statement

5. What is missing here? Liabilities + _________ = Assets

A. Interest
B. Financial Statement
C. Stockholder's Equity
D. Income Expense

6. What is this statement that provides an explanation regarding the change in the cash
balance from one accounting period to another?
A. Balance sheet
B. Income Statement
C. Cash Flow Statement
D. Trial Balance Statement

7. Which refers to the assets remaining in a business once all liabilities have been
settled?
A. Income Statement
B. Balance Sheet
C. Cash Flows
D. Stockholder’s Equity

8. What ratio measures the ability of a company to pay maturing obligations from its
current assets?
A. Profitability Ratio
B. Efficiency Ratio
C. Liquidity Ratio
D. Leverage

9. What is the process of setting up goals and objectives for a given period of time,
formulating alternatives for the course of action to be taken, and finally deciding on an
appropriate action from various alternatives?
A. Staffing
B. Planning
C. Organizing
D. Controlling

10. Which of the following accounts are not included in the working capital?
A. Cash
B. Property, Plant and Equipment
C. Accounts Receivable
D. Prepaid Expense
II.

1. On December 31, 2016, the balance sheet of Marshal company shows the total current
assets of PHP 1,100,000 and the total current liabilities of PHP 400,000. What is the
current ratio of the company?.
A. 2.750
B. 27.500
C. 2.75
D. .00275

2. Company A has a balance sheet that looks like this:

Current assets
Accounts receivable 15,000
Marketable securities 5,000
Cash and cash equivalents 5,000
Inventory 100,000
Total current assets$ 127,200
Current liabilities
Accounts payable 25,000
Accrued expenses 10,000
Other short-term liabilities 2,500
Total current liabilities 37,500
A. 000067
B. 0.67
C.6.67
D. .00067
3. Lets say you make and sell cupcakes. Last year, you generated net sales of 25,000 and
your operating income was 12,000. What was your operating profit margin?
A. .0048%
B. .480%
C. 48%
D..00048%

4. ROE=(Net income/_______) X 100%

A. Operating Income
B. Current Asset
C. Current Liabilities
D. Stockholders’ Equity

5. ROA= (________/ Total Assets) x 100%

A. Net Sales
B. Gross Profit
C. Operating Income
D. Interest Expense