QUIZ 1 A.

000067
Part I.
B. 0.67
1. A financial intermediary handling individual savings C.6.67
which receives premium payments placed in loans
or investments to accumulate funds to cover future D. .00067
benefits. COMMERCIAL BANK
2. A set up so that employees of corporations or 3. Let's say you make and sell cupcakes. Last year, you
governments can receive income after retirement. generated net sales of 25,000 and your operating
PENSION FUND income was 12,000. What was your operating profit
3. The science and art of managing money? FINANCE margin? 48%
4. The amount to be received from customers who 4. ROE = (Net income/_______) X 100%
purchased goods on credit? ACCOUNTS RECEIVABLE STOCKHOLDER’S EQUITY
5. What is missing here? Liabilities + _____ = Assets? 5. ROA= (________/ Total Assets) x 100% OPERATING
STOCKHOLDER’S EQUITY INCOME
6. Statement that provides an explanation about the
change in the cash balance from 1 accounting period
to another. CASH FLOW STATEMENT Multiple Choice:
7. The assets remaining in a business once all liabilities
have been settled. STOCKHOLDER’S EQUITY 1. Say your business is in the technology industry, and
8. Ratio that measures the ability of a company to pay the average ROA is 14.50%. Your business, ABC
maturing obligations from its current assets. Company, has a net income of $10,000. Your total
LIQUIDITY RATIO assets equal $65,000. ROA = 15.38
9. Process of setting up goals & objectives for a given 2. As an example of gross margin, a shoe maker might
period of time, formulating alternatives for the course sell a pair of shoes for Php50.00. They cost Php15 to
of action to be taken, & deciding on an appropriate make, yielding the retailer a gross profit of Php35.
action from various alternatives. PLANNING Compute for the gross profit margin. GM = 70
10. Which of the following accounts are not included in
the working capital? PROPERTY, PLANT & EQUIPMENT 3. If Christie’s Jewelry Store sells custom jewelry to
celebrities all over the country. Christie reports the
following numbers on her financial statements.
1. On December 31, 2016, the balance sheet of Marshal
company shows the total current assets of PHP
Cost of goods sold 1,000,000.00
1,100,000 and the total current liabilities of PHP
400,000. What is the current ratio of the company?
Rent 15,000.00
2.75
2. Company A has a balance sheet that looks like this:
Wages 100,000.00

Current Assets Other Op. Expenses 25,000.00

Accounts Receivable 15,000

Compute for the Operating Margin Ratio. OPR = 0.36
Marketable Securities 5,000
4. If a business holds:
Cash & Cash Equivalent 5,000 Cash = $15 million
Marketable securities = $20 million
Inventory 100,000 Inventory = $25 million
Short-term debt = $15 million
Total Current Assets 127,200 Accounts payables = $15 million
The current ratio is?
Current Liabilities
a. 2.0
Accounts Payable 25,000 b. 1.0
c. 3.0
Accrued Expenses 10,000 d. 4.0

Other short-term Liab. 2,500 5. Consider the balance sheet of Greenshaw Furnitures
showing the following data:
Total Current Liabilities 37,500 Cash: $200,000
 Marketable securities: $300,000
Receivables: $2,500,000 a. 9.51
Inventories: $1,800,000 b. 9.15
What is the value of the company’s quick assets? c. 5.19
ANSWER: 1,200,000 d. 5.91

a. $3million 10. Trinity Bikes Shop is a retail store that sells biking
b. $4million equipment and bikes. Due to declining cash sales,
c. $2million John, the CEO, decides to extend credit sales to all his
d. $1million customers. In the fiscal year ended December 31,
2017, there were $100,000 gross credit sales and
6. Boom Co. provides for the following details to help returns of $10,000. Starting and ending accounts
investors calculate the debt ratio: receivable for the year were $10,000 and $15,000,
Short-Term Assets – $30,000 respectively. John wants to know how many times his
Long-Term Assets – $300,000 company collects its average accounts receivable
Total Debt – $110,000 over the year. Compute for the receivable turnover in
days.
a. .33
b. .22 a. 50.69
c. .11 b. 56.90
d. .44 c. 59.06
d. 59.00
7. Company X applied for a loan. As it had multiple
borrowings to manage simultaneously, the lenders
found the ICR first to decide whether to approve or
disapprove the loan amount. The lenders found that
the EBIT is $15,000, and the interest expense is $1700,
$1500, and $2000. What is the company’s Interest
coverage ratio?
QUIZ 3

1. It is the cornerstone in budgeting

a. 2.88 A. Sales Budget
b. 8.82 B. Cash Budget
c. 88.2 C. Sales Forecast
d. 28.8 D. Master Budget

8. Sally’s Tech Company is a tech startup company 2. Refers to the provision of money for commercial use
that manufactures a new tablet computer. Sally is and effective use of such funds.
currently looking for new investors and has a A. Finance Manager
meeting with an angel investor. The investor wants to B. Business Finance
know how well Sally uses her assets to produce sales, C. Finance Allocator
so he asks for her financial statements. D. Finance

Here is what the financial statements reported: 3. One who acts as an intermediary between buyers
and sellers but does not take the title to the securities
Beginning Assets: $50,000 traded.
Ending Assets: $100,000 A. Broker
Net Sales: $25,000 B. Agent
C. Trader
Compute for the total assets turnover ratio. D. Dealer

a. .33 4. One who is in the security business acting as a

b. .35 principal rather than an Agent.
c. .37 A. Broker
d. .40 B. Agent
C. Trader
9. Fisher Company has annual gross sales of $10M in D. Dealer
the year 2015, with sales returns and allowances of
$10,000. Its net fixed assets’ beginning balance was
$1M, while the year-end balance amounts to $1.1M.
 5. Financial market on which debt securities with an 12. When buyers and sellers of securities negotiate with each
original maturity of one year or less are traded. other regarding price, volume, either directly or through a
A. Money Market broker or dealer, they are engaged in the financial market.
B. Capital Market
C. Bond Market A. Mortgage Market
D. Stock Market B. Consumer Credit Market
C. Auction Market
6. Portion of the financial market where trading is undertaken D. Negotiation Market
for securities with
maturity of more than one year. 13. Market where people buy and sell foreign currencies.

A. Money Market A. Spot Market

B. Capital Market B. Foreign Exchange Market
C. Bond Market C. Over – the –counter- market
D. Stock Market D. Options Market

14. Market consisting of large collection of brokers and dealers,

7 . It operates through a system of dealers using a connected electronically by telephones and computers that
telecommunication network, rather than a single physical provide for trading in unlisted securities.
location for trading.
A. Spot Market
A. Money Market B. Foreign Exchange Market
B. Capital Market C. Over – the –counter- market
C. Bond Market D. Options Market
D. Stock Market
15. When securities are traded for immediate delivery and
8. Financial Market where the common and preferred stocks payment.
issued by corporations are traded.
A. Spot Market
A. Money Market B. Foreign Exchange Market
B. Capital Market C. Over – the –counter- market
C. Bond Market D. Options Market
D. Stock Market
16. Gold and Treasury bond are traded in organized securities
9. Portion of the financial market which deals with loans on exchanges like the Philippines Stock Exchange.
residential, commercial, and industrial real estate, and on
farmland. A. Spot Market
B. Foreign Exchange Market
A. Mortgage Market C. Over – the –counter- market
B. Consumer Credit Market D. Options Market
C. Auction Market
D. Negotiation Market 17. A peso today could be deposited in a bank and made to
earn interest.
10. The market involved in loans on auto, appliances,
education and travel. A. Time Value of Money
B. Return On Investment
A. Mortgage Market C. Rate of Return
B. Consumer Credit Market D. Calculation of Present Worth
C. Auction Market
D. Negotiation Market 18. The net income generated by the use of investments or the
net worth of a firm.
11. One where trading is conducted by an independent third
party according to matching of prices on orders received to A. Time Value of Money
buy and sell particular security. B. Return On Investment
C. Rate of Return
A. Mortgage Market D. Calculation of Present Worth
B. Consumer Credit Market 19. Statement produced periodically, normally at the end of
C. Auction Market the financial year, showing an organization’s assets, liabilities,
D. Negotiation Market and the interest of the owners.
 A. Financial Statement
B. Balance Sheet
C. Profit and Loss Statement
D. Annual Report

20. The balance sheets show everything that the firm owns
and which has monetary value.

A. Assets
B. Liabilities
C. Net Worth
D. Profit and Loss Statement

21. The balance sheet shows the profile of the debts of the
company.

A. Assets
B. Liabilities
C. Net Worth
D. Profit and Loss Statement

22. The balance sheet shows the interest of the owner or

owners in the company.

A. Assets
B. Liabilities
C. Net Worth
D. Profit and Loss Statement

23. Represents the revenues realized from the sale of

commodities and services produced by the company, as well
as the costs and expenses incurred in connection with the
realization of the said revenues.

A. Assets
B. Liabilities
C. Net Worth
D. Profit and Loss Statement

24. An estimate of income and expenditure for a future period.

A. Budget
B. Income Statement
C. Revenues
D. Expenses.

25. Summary of the performance of the firms for a past period,

and with the balance sheet which represents the financial
condition of the firm at a given date, past or present.

A. Budget
B. Income Statement
C. Revenues
D. Expenses