Republic of the Philippines

Department of Education
Region 02
SCHOOLS DIVISION OFFICE OF ISABELA
Alibagu, City of Ilagan, Isabela
DON MARIANO MARCOS NATIONAL HIGH SCHOOL
School ID: 300529
Ipil, Echague, Isabela, 3309
S.Y 2022-2023

SUMMATIVE TEST IN BUSINESS FINANCE

Accountancy and Business Management 12 – Bromeliads

Name ___________________________________ Grade and Section ___________________

TEST I. MULTIPLE CHOICE

Directions: Read the following items and choose the letter that corresponds to your answer based from the
given options.

1. The controller is responsible in managing the cash and credit, financial planning and capital
expenditures.
A. True B. False C. Sometimes True D. Sometimes False
2. Investing decisions deals with managing the assets of the firms.
A. True B. False C. Sometimes True D. Sometimes False
3. Financing decisions includes making decisions on how to finance the long-term investments and
working capital which deals with the day-to-day operations of the company.
A. True B. False C. Sometimes True D. Sometimes False
4. The treasurer handles tax payments, financial accounting and management information systems.
A. True B. False C. Sometimes True D. Sometimes False
5. Operating decisions deals with working capital management.
A. True B. False C. Sometimes True D. Sometimes False
6. Sale is a portion of profit or payment made by a corporation to its shareholders.
A. True B. False C. Sometimes True D. Sometimes False
7. The company must have enough retained earnings and cash to declare cash dividends.
A. True B. False C. Sometimes True D. Sometimes False
8. It deals with ways of managing money.
A. Shareholder B. President C. Marketing Manager
D. Finance E. Financial Management F. Finance Manager
9. Who is concerned in planning, analysis, utilization, and acquisition of funds?
A. Shareholder B. President C. Marketing Manager
D. Finance E. Financial Management F. Finance Manager
10. Who elected the Board of Directors?
A. Shareholder B. President C. Marketing Manager
D. Finance E. Financial Management F. Finance Manager
11. Who is appointed by the Board of Directors?
A. Shareholder B. President C. Marketing Manager
D. Finance E. Financial Management F. Finance Manager
12. Who formulates business strategies and plans?
A. Shareholder B. President C. Marketing Manager
D. Finance E. Financial Management F. Finance Manager
13. What is the main goal of financial management?
A. Minimizing risk B. Maximizing profit
C. Minimizing return D. Maximizing wealth
14. Who provides the direction of the company?
A. Finance Manager B. Board of Directors
C. Marketing Manager D. Shareholders
15. Who supervises the company’s operation and ensuring that the strategies are well executed and
planned?
A. Finance Manager B. President C. Marketing Manager D. Shareholders
16. All are the roles of a finance manager EXCEPT:
A. Analysis and Planning B. Acquiring of Fund
C. Utilization of Funds D. Marketing research
17. This refers to how much the total asset is financed by the debt or equity.
A. Capital Structure B. Loan
C. Organizational Structure D. Stock
18. Who is responsible in managing the cash and credit, financial planning and capital expenditures?
A. Treasurer B. Secretary C. President D. Controller
19. Who handles tax payments, financial accounting and management information systems?
A. Treasurer B. Secretary C. President D. Controller
20. It deals with determining the capital structure of the company and to raise funds from debt and
equity.
A. Investing decisions B. Financing decisions
C. Operating decisions D. Declaration of dividends
21. It includes the vision, mission, and goals set by the top level of management.
A. Tactical Planning B. Strategic Planning
C. Operational Planning D. Financial Planning
22. It helps the company by translating the strategic plans into specific plans or actions carried out by
the middle level of management.
A. Tactical Planning B. Strategic Planning
C. Operational Planning D. Financial Planning
23. It involves day-to-day operations carried out by the lower-level management.
A. Tactical Planning B. Strategic Planning
C. Operational Planning D. Financial Planning
24. What step is this? Assign the task to accountable and responsible individual or team and have a
timeline.
A. First B. Second C. Third
D. Fourth E. Fifth F. Sixth
25. What step is this? Identify the resources needed.
A. First B. Second C. Third
D. Fourth E. Fifth F. Sixth
26. What step is this? Identify goals that are related to the tasks.
A. First B. Second C. Third
D. Fourth E. Fifth F. Sixth
27. Financial institution matches the supply and demand for funds.
A. True B. False C. Sometimes true D. Sometimes false
28. Financial system channels the funds from the savings unit to the deficit units.
A. True B. False C. Sometimes true D. Sometimes false
29. Financial intermediaries provide channel through which the central bank can influence the
economy, in general and the financial system, in particular.
A. True B. False C. Sometimes true D. Sometimes false
30. Bank is an example of financial intermediary
A. True B. False C. Sometimes true D. Sometimes false
31. Lender is otherwise known as savings unit.
A. True B. False C. Sometimes true D. Sometimes false
32.  Financial institutions include banks, credit unions, asset management firms, building societies, and
stock brokerages, among others
A. True B. False C. Sometimes true D. Sometimes false
33. Financial institutions can be divided in two major parts: Banking Institution and Non-banking
institution.
A. True B. False C. Sometimes true D. Sometimes false
34. Financial intermediary links the savers and users of funds.
A. True B. False C. Sometimes true D. Sometimes false
35. Globalization permits foreign participants to be part of the financial system.
A. True B. False C. Sometimes true D. Sometimes false
36. Interest received from making loans
A. Inflow B. Outflow C. No flow D. Flow less
37. Payments to acquire inventory
A. Inflow B. Outflow C. No flow D. Flow less
38. Payments to lenders and other creditors for interest
A. Inflow B. Outflow C. No flow D. Flow less
39. Sales of property, plant, and equipment
A. Inflow B. Outflow C. No flow D. Flow less
40. Cash paid purchase available-for-sale and held-to-maturity securities
A. Inflow B. Outflow C. No flow D. Flow less
41. Plan for expected excess in cash using Financial Planning tools.
A. The statement is related to financing B. The statement is related to investing
C. The statement is related to operating D. The statement is related to dividend policies
42. Determine working capital.
A. The statement is related to financing B. The statement is related to investing
C. The statement is related to operating D. The statement is related to dividend policies
43. Declare dividend to shareholders.
A. The statement is related to financing B. The statement is related to investing
C. The statement is related to operating D. The statement is related to dividend policies
44. Choose long-term investment.
A. The statement is related to financing B. The statement is related to investing
C. The statement is related to operating D. The statement is related to dividend policies
45. Purchase land for sale.
A. The statement is related to financing B. The statement is related to investing
C. The statement is related to operating D. The statement is related to dividend policies

46. In what sequence would the following budgets be prepared?

1. sales budget
2. inventory budget
3. Production budget
4. purchases budget
5. cash budget
a. 4,5,1,2,3
b. 2,3,4,5,1
c. 1,2,3,4,5
d. 3,4,5,1,2

47. The main computation made in this budget is: Sales Target set by management divided by sales per
unit.
a. Purchase budget
b. Production budget
c. Sales budget
d. Inventory budget

48. The production department is preparing their budget for the year. Currently they are identifying how
much raw materials are needed for this year, what budget is the production department preparing?
a. Purchase Budget
b. Production Budget
c. Sales Budget
d. Inventory Budget

49. The production department is preparing their budget for the year. Currently they are identifying how
many production runs they need to do this year. What budget is the production department preparing?
a. Production Budget
b. Inventory Budget
c. Sales Budget
d. Purchase Budget

50. What do you call the annual company’s financial plan?

a. Budget
b. Sales Budget
c. Purchase Budget
d. Inventory Budget

Prepared by:

HERMAN B. ATIP, JR
Teacher III

Noted:

SAMUEL R. APOSTOL, EdD

School Principal IV