EXAMINATION

BUSINESS AND MANAGEMENT

COLLEGE
1ST Term; Academic Year 2022-2023

Course Code: NonABM

Course Title: Basic Finance
Grading Period: 3 units ___________
30

Student’s Name:
Program and Year Level:
Date of Examination:

PRE-TEST

Multiple Choice
Instruction: Choose the best answer on the following statements.

1. The study of how individuals, institutions, governments, and business acquire spend, and
manage money and other financial aspects.
A. Accounting B. Economics C. Finance D. All of the above
2. The social science that studies how individuals, governments, firms, and nations make
choices on allocating scarce resources to satisfy their unlimited wants.
A. Accounting B. Economics C. Finance D. All of the above
3. The system of recording and summarizing business and financial transactions and analyzing,
verifying and reporting the results.
A. Accounting B. Economics C. Finance D. All of the above
4. The organizations that help the financial system operate effectively and transfer funds from
savers and investors to individuals, businesses and governments that seek to spend or invest
the funds in physical assets.
A. Financial Institutions B. Financial Markets C. Financial Management D. None of the
above
5. The physical locations that facilitate the flow of funds among investors and businesses.
A. Financial Institutions B. Financial Markets C. Financial Management D. None of the
above
6. This involves financial planning, asset management, and fundraising decisions to enhance
the value of businesses.
A. Financial Institutions B. Financial Markets C. Financial Management D. None of the
above
7. A form of organization where there is only one owner.
A. Sole Proprietorship B. Partnership C. Corporation D. None of the above
8. An association of two or more persons who bind themselves to contribute money, property, or
industry to a common fund, with the intention of dividing profits among themselves.
A. Sole Proprietorship B. Partnership C. Corporation D. None of the above
9. An artificial being created by operation of law, having the right of succession and the powers,
attributes and properties expressly authorized by law of incident to its existence.
A. Sole Proprietorship B. Partnership C. Corporation D. None of the above
10. Any good or token that functions as a medium of exchange.
A. Cash B. Coins C. Money D. Wealth
11. Total collection of the pieces of property of a certain person in a given point in time.
A. Cash B. Coins C. Money D. Wealth

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 12. The sole authority empowered to issue currency in the country.
A. LBP B. BPI C. BDO D. BSP

13. Money is being used to pay for items purchased or to settle any liability.
A. Unit of Account B. Medium of Exchange C. Means of Payment D. Store of Value
14. An intermediary used in trade.
A. Unit of Account B. Medium of Exchange C. Means of Payment D. Store of Value
15. A standard numerical unit of measurement of the market value of goods and services.
A. Unit of Account B. Medium of Exchange C. Means of Payment D. Store of Value
16. An item could be reliably saved, stored, and retrieved.
A. Unit of Account B. Medium of Exchange C. Means of Payment D. Store of Value
17. The act of estimating revenue and expenses over a period.
A. Finance B. Budgeting C. Investments D. Financing
18. Come in many forms that will generate income or appreciate in the future.
A. Finance B. Budgeting C. Investments D. Financing
19. His role is to determine the appropriate capital structure of the company.
A. Accountant B. Marketing C. Financial Manager D. Economist
20. Any asset that is cash, an equity instrument of another entity, a contractual right to receive
cash or another financial asset from another entity.
A. Financial Asset B. Financial Liability C. Equity Instrument D. All of the above
21. Any liability that is a contractual obligation to deliver cash or other financial instrument to
another entity and to exchange financial instruments with another entity under conditions that
are potentially unfavorable.
A. Financial Asset B. Financial Liability C. Equity Instrument D. All of the above
22. Any contract that evidences a residual interest in the assets of an entity after deducting all
liabilities.
A. Financial Asset B. Financial Liability C. Equity Instrument D. All of the above
23. Provide information on the financial condition of a company.
A. Financial Asset B. Financial Liability C. Financial Statement D. All of the above
24. Known as Balance Sheet.
A. Statement of Financial Position B. Statement of Comprehensive Income
C. Statement of Cash Flow D. Statement of Changes in Equity
25. Known as Income Statement.
A. Statement of Financial Position B. Statement of Comprehensive Income
C. Statement of Cash Flow D. Statement of Changes in Equity
26. Shows where the cash was obtained and used by the business.
A. Statement of Financial Position B. Statement of Comprehensive Income
C. Statement of Cash Flow D. Statement of Changes in Equity
27. Reflects all the elements that caused changes in the equity between two dates of the
statement of financial position.
A. Statement of Financial Position B. Statement of Comprehensive Income
C. Statement of Cash Flow D. Statement of Changes in Equity
28. This is an essential part of the Financial Statement because it analyzes the figures reflected
in the financial statements, projections on the future direction of the earning potentials and
financial capabilities can be made.
A. Statement of Financial Position B. Statement of Comprehensive Income
C. Statement of Cash Flow D. Notes of Financial Statements
29. A systematic process of making sensible decisions about money that helps you achieve your
goals in life.
A. Financial Analysis B. Financial Accounting
C. Financial Planning D. Financial Reporting
30. The primary goal of the financial manager.
A. Minimizing risk B. Minimizing return
C. Maximizing profit D. Maximizing wealth

IFSU-LAG-INS-F013
Rev.00(Jan.03,2022)
Prepared by: Checked by:

MORAYA P. CACLINI, PhD MORAYA P. CACLINI, PhD

Instructor / Professor Program Chairperson

Approved by:

JENNIFER MADONNA G. DAIT

College Dean

IFSU-LAG-INS-F013
Rev.00(Jan.03,2022)