BAED-BFIN2121 Business Finance

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4. Week 4-5: Financial Planning Tools and Concepts I
5. Long Quiz 001

Question 1
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ABC Merchandise has inventories worth Php15,000, cash worth Php20,000, Prepaid
expenses worth Php5,000 and equipment worth Php10,000. She has a current liability of
Php30,000. How much is the quick ratio?

Select one:

a.
5.00

b.
0.66

c.
1.33

d.
73.00
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Question 2
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At the end of 2016 ABC merchandise balance sheet shows Php30,000 in accounts receivable,
Php100,000 of annual sales. The 2015 year-end balance sheet showed Php10,000 of
accounts receivable. This amount became the beginning inventory for the year 2016. What
is the receivables turnover ratio?

Select one:

a.
73.00

b.
0.66

c.
5.00

d.
1.33
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Question 3
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This budget calculates the materials that must be purchased, by time period, in order to
fulfill the requirements of the production budget.

Select one:

a.
Sales budget

b.
Selling and administrative expense budget

c.
Direct materials budget

d.
Production budget
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Question 4
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This is used to calculate the number of labor hours that will be needed to produce the units
itemized in the production budget.

Select one:

a.
Direct labor budget

b.
Sales budget

c.
Production budget

d.
Direct materials budget
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Question 5
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At the end of 2016 ABC merchandise balance sheet shows Php30,000 in accounts receivable,
Php150,000 of annual sales. The 2015 year-end balance sheet showed Php10,000 of
accounts receivable. This amount became the beginning inventory for the year 2016. What
is the average collection period? (365 days in a year)

Select one:

a.
0.66

b.
5.00

c.
73.00

d.
1.33
Clear my choice

Question 6
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This type of budget usually includes expenses regarding advertising, insurance, rent,
salaries, and utilities.

Select one:

a.
Production budget

b.
Selling and administrative expense budget

c.
Direct materials budget

d.
Sales budget
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Question 7
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This is an ongoing process to help you make sensible financial decisions aimed at
generating greater return on assets, growth in market share and solving foreseeable
problems.

Select one:

a.
Cash budget

b.
Budgeting

c.
Projected financial statements

d.
Financial planning
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Question 8
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This includes budgets for direct material, direct labor and manufacturing overhead.

Select one:

a.
Selling and administrative expense budget

b.
Sales budget

c.
Direct materials budget

d.
Production budget
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Question 9
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This is the process of estimating the revenue and expenses over a specified future period of
time.

Select one:

a.
Budgeting
b.
Cash budget

c.
Financial planning

d.
Projected financial statements
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Question 10
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A business has total assets worth Php400,000, total liabilities worth Php175,000. What is the
debt to total assets ratio?

Select one:

a.
43.75

b.
56.25

c.
0.73

d.
73.00
Clear my choice

Question 11
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A business has total assets worth Php400,000 and total liabilities worth Php175,000. Equity
can be computed by deducting liabilities from assets. What is the debt to equity ratio?

Select one:

a.
56.25

b.
73.00

c.
43.75

d.
0.73
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Question 12
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WXY Store paid Php200,000 on inventory bought for the year. The business was able to sell
all of the inventory for Php750,000. Business expenses were 30,000 and tax rate is 30%.
What is the net profit margin?

Select one:

a.
0.49
b.
0.73

c.
73.00

d.
5.00
Clear my choice

Question 13
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This budget is used to ascertain whether company operations and other activities will
provide a sufficient amount of cash to meet projected cash requirements.

Select one:

a.
Budgeting

b.
Cash budget

c.
Projected financial statements

d.
Financial planning
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Question 14
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A statement of financial position and income statement stated in future date are examples
of ________________.

Select one:

a.
Projected financial statements

b.
Cash budget

c.
Financial planning

d.
Budgeting
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Question 15
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ABC Merchandise has inventories worth Php15,000, cash worth Php20,000, Prepaid
expenses worth Php5,000 and equipment worth Php10,000. She has a current liability of
Php30,000. How much is the current ratio?

Select one:

a.
0.66
b.
5.00

c.
73.00

d.
1.33
Clear my choice

Question 16
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This budget contains all manufacturing costs other than the costs of direct materials and
direct labor.

Select one:

a.
Direct materials budget

b.
Manufacturing overhead budget

c.
Production budget

d.
Sales budget
Clear my choice

Question 17
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What type of budget must be made first?

Select one:

a.
Direct materials budget

b.
Production budget

c.
Selling and administrative expense budget

d.
Sales budget
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Question 18
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According to XYZ balance sheet, the accounts payable was Php50,000 and annual credit
purchases amounted to Php250,000. What is the payable turnover?

Select one:

a.
0.49

b.
73.00

c.
0.73

d.
5.00
Clear my choice

Question 19
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WXY Store paid Php200,000 on inventory bought for the year. The business was able to sell
all of the inventory for Php750,000. Business expenses were 30,000 and tax rate is 30%.
What is the gross profit margin?

Select one:

a.
73.00

b.
0.73

c.
0.49

d.
5.00
Clear my choice

Question 20
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According to XYZ balance sheet, the accounts payable was Php50,000 and annual credit
purchases amounted to Php250,000. Average payment period?

Select one:

a.
0.73

b.
73.00

c.
5.00

d.
0.49
Clear my choice