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Business Finance Test Questions
Business Finance Test Questions
BUSINESS FINANCE
1ST PERIODICAL EXAM
1. IASB -
2. PPE -
3. SME -
4. URC -
5. OCI -
II. Matching Type: Match the answer by matching Column A with Column B. Anwer choices maybe repeated as
necessary. (15 pts)
Column A Column B
_____1. Setting policies on investments and dividends. A. VP for Sales and Marketing
____10. Coordinating the functions of administration, finance and sales and marketing departments.
_____13. Performing all areas of management:planning, organizing, staffing, directing and controlling.
III. Sequencing: Financial Statement Preparation – On the space provided before the number, Please provide the
number in the process of preparing the financial statements. Start with step 1 and ending with step 9. (10 pts)
Prepayment Post closing trial balance Income stament Allowance for uncollectible accounts
Accruals capital structure other comprehensive income Board of Director Statement of Financial Position
statement of Cash flow
_______6. Transactions that are not reported in the profit or loss statement but affect the stockholders equity.
_______8. Provides an explanation regarding the change in cash balance from one accounting period to another.
______10. It is prepared to test of the debit balances equal the credit balances after closing entries are considered.
V. True or False. Write True if the statement is correct and False if the statement is incorrect. ( 5 pts)
______1. To minimize the probability of failure, short term investment have to be supported by capital budgeting.
______2. Three condition must exist before a company can declare cash dividend.
______3. Financial instruments are generally classified into two major categories.
______4. Shareholders wealth maximization should serve as the overriding objective of managing a company.
““All our dreams can come true, if we have the courage to pursue them.” “All the adversity I've had in my life, all my
troubles and obstacles, have strengthened me… You may not realize it when it happens, but a kick in the teeth may
be the best thing in the world for you.” – Walt Disney
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