Review in Business

Finance for the 1 st

Periodical Exam
1. In making financial projections, always start with the
statement of profit or loss and the most important
account to forecast first is _________.?
A. Asset
B. Capital
C. Sales
D. Expenses
1. In making financial projections, always start with the
statement of profit or loss and the most important
account to forecast first is _________.?
A. Asset
B. Capital
C. Sales
D. Expenses
2. The capital of a business which is used in its day-to-day
operation.
A. Market Sentiment
B. Profitability
C. Working Capital
D. Wealth Maximization
2. The capital of a business which is used in its day-to-day
operation.
A. Market Sentiment
B. Profitability
C. Working Capital
D. Wealth Maximization
3. Refers to the process of offering shares of private
corporation to the public in a new stock issuance for the
first time.
A. Sharing is caring
B. Underwriting
C. Stock Trading
D. Initial Public Offering
3. Refers to the process of offering shares of private
corporation to the public in a new stock issuance for the
first time.
A. Sharing is caring
B. Underwriting
C. Stock Trading
D. Initial Public Offering
4. It provides policy directions in the areas of money,
banking, and credit. It supervises operations of banks and
exercises regulatory powers over non-bank financial
institutions with quasi-banking functions.
A. Board of Directors
B. Bangko Sentral ng Pilipinas
C. Banks
D. Pawnshops
4. It provides policy directions in the areas of money,
banking, and credit. It supervises operations of banks and
exercises regulatory powers over non-bank financial
institutions with quasi-banking functions.
A. Board of Directors
B. Bangko Sentral ng Pilipinas
C. Banks
D. Pawnshops
5. What is a sales budget?
A. A plan of items to be sold
B. A plan of how much an items will cost
C. A plan of how much money should be made in a
given period of time.
D. A plan for tracking an inventory and how much
they sell
5. What is a sales budget?
A. A plan of items to be sold
B. A plan of how much an items will cost
C. A plan of how much money should be made in a
given period of time.
D. A plan for tracking an inventory and how much
they sell
6. Which of the following is not a financial institution?
A. pension fund
B. savings bank
C. newspaper publisher
D. credit union
6. Which of the following is not a financial institution?
A. pension fund
B. savings bank
C. newspaper publisher
D. credit union
7. It is the minimum level of current assets required by a
firm to carry on its business operations given its
production capacity or relevant sales range.
A. Gross Working Capital
B. Permanent Working Capital
C. Temporary Working Capital
D. Net Working Capital
7. It is the minimum level of current assets required by a
firm to carry on its business operations given its
production capacity or relevant sales range.
A. Gross Working Capital
B. Permanent Working Capital
C. Temporary Working Capital
D. Net Working Capital
8. A bank that specializes in offering savings account and
mortgage loans to consumers.
A. Commercial bank
B. Universal bank
C. Thrift bank
D. Rural bank
8. A bank that specializes in offering savings account and
mortgage loans to consumers.
A. Commercial bank
B. Universal bank
C. Thrift bank
D. Rural bank
9. Which of the following is not a service provided by
financial institutions?
A. Buying the businesses of others
B. Investing customer’s savings in stocks and bonds
C. Paying savers’ interest on deposited funds
D. Lending money to customers
9. Which of the following is not a service provided by
financial institutions?
A. Buying the businesses of others
B. Investing customer’s savings in stocks and bonds
C. Paying savers’ interest on deposited funds
D. Lending money to customers
10. These are liquid assets whose value are derived from a
contractual claim.
A. Tangible Asset
B. Non-current Asset
C. Intangible Asset
D. Financial Asset
10. These are liquid assets whose value are derived from a
contractual claim.
A. Tangible Asset
B. Non-current Asset
C. Intangible Asset
D. Financial Asset
11. Refers to how asset can easily be converted into cash
to pay immediate and short-term obligation.
A. Leverage
B. Solvency
C. Profitability
D. Liquidity
11. Refers to how asset can easily be converted into cash
to pay immediate and short-term obligation.
A. Leverage
B. Solvency
C. Profitability
D. Liquidity
12. It is the act of putting money, effort and time into
something to make a profit.
A. Investment
B. Planning
C. Budgeting
D. Wealth Maximization
12. It is the act of putting money, effort and time into
something to make a profit.
A. Investment
B. Planning
C. Budgeting
D. Wealth Maximization
13. It is the management’s estimate of sales for a future
financial period. Contains an itemization of a company’s
sales expectations for the budget period.
A. External Funds Needed
B. Working Capital
C. Sales Budget
D. Production Budget
13. It is the management’s estimate of sales for a future
financial period. Contains an itemization of a company’s
sales expectations for the budget period.
A. External Funds Needed
B. Working Capital
C. Sales Budget
D. Production Budget
14. Are often owned by family members, group of
individuals or relatively small number of shareholders
which do not offer or trade its company stocks to the
general public.
A. Private Banking Institution
B. Public Banking Institution
C. Privately Owned Corporation
D. Publicly Owned Corporation
14. Are often owned by family members, group of
individuals or relatively small number of shareholders
which do not offer or trade its company stocks to the
general public.
A. Private Banking Institution
B. Public Banking Institution
C. Privately Owned Corporation
D. Publicly Owned Corporation
15. Assets that have long-term physical existence or is
acquired for use in the operation of the business and not
for sale to customers.
A. Tangible Assets
B. Non-current Assets
C. Current Assets
D. Accounts Receivable
15. Assets that have long-term physical existence or is
acquired for use in the operation of the business and not
for sale to customers.
A. Tangible Assets
B. Non-current Assets
C. Current Assets
D. Accounts Receivable
16. A type of bank that provide services such as accepting
deposits, making business loans, and offering basic
investment products that is operated as a business for
profit.

A. Commercial bank C. Thrift bank

B. Rural bank D. Quasi-bank
16. A type of bank that provide services such as accepting
deposits, making business loans, and offering basic
investment products that is operated as a business for
profit.

A. Commercial bank C. Thrift bank

B. Rural bank D. Quasi-bank
17. It is a schedule which provides information regarding
the number of units that should be produced over a given
accounting period based on expected sales and targeted
level of ending inventories.

A. External Funds Needed C. Sales Budget

B. Working Capital D. Production Budget
17. It is a schedule which provides information regarding
the number of units that should be produced over a given
accounting period based on expected sales and targeted
level of ending inventories.

A. External Funds Needed C. Sales Budget

B. Working Capital D. Production Budget
18. Are assets that can be easily be converted into cash.

A. Intangible assets C. Fixed assets

B. Liquid assets D. Non-current assets
18. Are assets that can be easily be converted into cash.

A. Intangible assets C. Fixed assets

B. Liquid assets D. Non-current assets
19. It is the amount of money a company must raise from
external sources to finance the increase in assets required
to support increased level of sales.

A. External Funds Needed C. Retained Earnings

B. Operating Income D. Dividend Payout
19. It is the amount of money a company must raise from
external sources to finance the increase in assets required
to support increased level of sales.

A. External Funds Needed C. Retained Earnings

B. Operating Income D. Dividend Payout
20. Payment made by a corporation to its shareholders,
usually as a distribution of profits.

A. Salary C. Tax
B. Net Profit D. Dividend
20. Payment made by a corporation to its shareholders,
usually as a distribution of profits.

A. Salary C. Tax
B. Net Profit D. Dividend