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1
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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 materials budget

b.
Direct labor budget

c.
Production budget

d.
Sales budget

Question 2
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In this step in financial planning, one should periodically analyze your financial values and
goals.
Select one:

a.
Identification of Alternative Courses of Action

b.
Reevaluation and Revision of Plan

c.
Development of financial goals

d.
Evaluation of Alternatives

Question 3
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The company has already achieved its net income. He then distributed 20% of it as dividends.
The amount remaining is being reserved by the company for its growth and development. This is
called as ___________.
Select one:

a.
Retained earnings

b.
Equity shares

c.
Loan from banks and financing institutions

d.
Trade credit

Question 4
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This is also termed as common shares
Select one:

a.
Retained earnings

b.
Loan from banks and financing institutions

c.
Trade credit

d.
Equity shares

Question 5
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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.
0.49

b.
5.00

c.
73.00

d.
0.73

Question 6
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"In this part, the financial manager may continue the same course of action, expand the current
situation, change the current situation or take a new course of action."
Select one:

a.
Evaluation of Alternatives

b.
Reevaluation and Revision of Plan

c.
Identification of Alternative Courses of Action

d.
Development of financial goals

Question 7
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The economic order quantity involves determining the optimal order size for an inventory item
given its expected usage, carrying costs, and ordering costs.
Select one:
True 
False

Question 8
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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.
Financial planning

b.
Projected financial statements

c.
Cash budget

d.
Budgeting

Question 9
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This is financing method in which a business owner sells accounts receivable at a discount to a
third-party funding source to raise capital
Select one:

a.
Factoring

b.
Debentures

c.
Public deposits

d.
Lease financing

Question 10
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A financial instrument is the written legal obligation of one party to transfer a thing of value,
usually money, to another party at some future date, under certain conditions.
Select one:
True 
False

Question 11
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Mr. A borrowed funds from ABC Bank and HIJ Financing company. His sources of finance is
termed as
Select one:

a.
Retained earnings

b.
Loan from banks and financing institutions

c.
Trade credit
d.
Equity shares

Question 12
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"Statement 1. Today insurance companies offer most of the services commercial banks do.
Statement 2. Investment banks are member-owned financial cooperatives are democratically
controlled by its members, and operated for the purpose of offering its members economical
financial services."
Select one:

a.
Both statements are correct

b.
Statement 1 is correct while Statement 2 is wrong

c.
Both Statements are wrong

d.
Statement 1 is wrong while Statement 2 is correct

Question 13
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These is being issued by the borrower to signify its indebtedness to the creditor.
Select one:

a.
Stocks

b.
Notes

c.
Bonds

d.
None of these

Question 14
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Companies offer these shares initially at the stok exhange. This specific type of shares has
unstable earnings.
Select one:

a.
Public deposits

b.
Equity shares

c.
Factoring

d.
Commercial paper

Question 15
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 Question text
Which does not belong to the group?
Select one:

a.
Acquiring Necessary Capital

b.
Ensuring Business Continuity

c.
Cash Management

d.
Acquiring the Necessary Capital

Question 16
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This is the process of estimating the revenue and expenses over a specified future period of time.
Select one:

a.
Financial planning

b.
Cash budget

c.
Budgeting

d.
Projected financial statements

Question 17
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The Statement of Assets, Liabilities and Net Worth (SALN) is a form of
Select one:

a.
Statement of Cash Flows

b.
Income Statement

c.
Statement of Financial Position

d.
statement of Changes in Equity

Question 18
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Financial management decision function includes areas such as investment, operations
management, marketing, sales and asset management decisions.
Select one:
True
False 

Question 19
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A finance professional is using a percent change analysis of financial statements. He used the
formula (Most recent value - Base period value)/Base period value. He is using a _________
type of analysis.
Select one:

a.
Diagonal

b.
Horizontal

c.
ZigZag

d.
Vertical

Question 20
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Which statement is false?
Select one:

a.
The controller and his staff is responsible to meet the tax filing requirements

b.
The treasurer is the one holding cash accounts of the company

c.
The controller reports to the treasurer.

d.
The CFO is sometimes termed as the financial manager

Question 21
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Which of the following statements is correct
Select one:

a.
The controller is the one responsible for the management of financial transaction recording
and not on the investment decision of the company.

b.
The controller must concentrate to principles of safety, liquidity and profitability while investing
capital.

c.
The finance manager must carefully select the best investment alternatives and select the one
with reasonable and unstable return from.

d.
The finance manager must maintain a good relationship with the head of all functional
departments only if they are in agreement with his business decisions.

Question 22
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Which of the following institutions has the power to accept drafts and issue letters of credit;
discount and negotiate promissory notes, drafts, bills of exchange, and other evidences of debt;
accept or create demand deposits; receive other types of deposits and deposit substitutes; buy and
sell foreign exchange and gold or silver bullion; and acquire marketable bonds and other debt
securities; and extend credit.
Select one:

a.
Metrobank

b.
Palawan Pawnshop

c.
Multipurpose Cooperative

d.
PhilHealth

Question 23
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If Debt to Equity ratio is 1:2 or 0.50 and Total Equity is Php500,000, what is the amount of Total
Debt?
Select one:

a.
Php 1,500,000

b.
Php 500,000

c.
Php 1,000,000

d.
Php 250,000

Question 24
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"Statement I. Financial statements are records that outline the financial activities of a business,
an individual or any other entity. These are meant to present the economic information of the
entity in question as clearly and concisely as possible for both the entity and for readers.

Statement II. The elements of financial statement include the financial position and financial
performance. Financial performance is the status of the assets, liabilities, and owners' equity
while the financial position is a subjective measure of how well a firm can use assets from its
primary mode of business and generate revenues."
Select one:

a.
Statement I is False; Statement II is True

b.
Statement I is true; Statement II is false

c.
Both Statements are True

d.
Both Statements are False

Question 25
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Aging of receivables is a schedule of customer balances classified by the length of time they
have been unpaid.
Select one:
 True 
False

Question 26
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When classified on the basis of period, which does not belong to the group?
Select one:

a.
Debentures

b.
Preference shares

c.
Lease financing

d.
Equity shares

Question 27
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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.
73.00
b.
0.49

c.
0.73

d.
5.00

Question 28
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A statement of financial position and income statement stated in future date are examples of
________________.
Select one:

a.
Cash budget

b.
Financial planning

c.
Projected financial statements

d.
Budgeting

Question 29
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 Question text
What type of budget must be made first?
Select one:

a.
Direct materials budget

b.
Production budget

c.
Sales budget

d.
Selling and administrative expense budget

Question 30
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This type of budget usually includes expenses regarding advertising, insurance, rent, salaries, and
utilities.
Select one:

a.
Direct materials budget

b.
Sales budget

c.
Production budget

d.
Selling and administrative expense budget

Question 31
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If a business entity has a larger current assets than its current liabilities, the entity has _______
working capital.
Select one:

a.
Inventory management

b.
Positive

c.
Current liabilities

d.
Negative

Question 32
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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.
5.00

b.
1.33

c.
73.00

d.
0.66

Question 33
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Which is not a classification of funds based on the period
Select one:

a.
Short term

b.
Long term

c.
Medium term

d.
Continuous term

Question 34
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When classified on the basis of ownership, which does not belong to the group?
Select one:
a.
Loan from banks

b.
Commercial papers

c.
Debentures

d.
Equity shares

Question 35
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Factoring is a financing method in which a business owner sells accounts receivable at a discount
to a third-party funding source to raise capital.
Select one:
True 
False

Question 36
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Which among the following institutions does not have a full banking license or is not supervised
by a national or international banking regulatory agency?
Select one:

a.
Credit Unions

b.
Investment Banks

c.
Commercial Banks

d.
None of these

Question 37
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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.
73.00

b.
0.73

c.
0.49

d.
5.00

Question 38
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 Question text
The finance manager has a regular meeting with all the heads of each department. What is being
described in the situation?
Select one:

a.
Forecasting Financial Requirements

b.
Interrelation with Other Departments

c.
Acquiring Necessary Capital

d.
Cash Management

Question 39
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Which is not a duty of the treasurer?
Select one:

a.
Managing cash

b.
Solving for tax dues

c.
Managing short-term investments

d.
Projecting cash flow needs

Question 40
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This is a liquidity ratio that measures a firm's ability to pay off its short-term liabilities with its
current assets
Select one:

a.
Gross Profit Margin

b.
Receivable turnover ratio

c.
Current ratio

d.
Long-term Ratio

Question 41
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Which of the following statements is wrong?
Select one:

a.
The financial manager should have sound knowledge not only in finance related area but also in
other areas as well.

b.
In forecasting financial requirements, the controller is the one who should estimate how
much resources are required to acquire fixed assets and forecast the amount needed to
meet the working capital requirements in future.

c.
The finance manager must carefully select best investment alternatives and consider the
reasonable and stable return from the investment.

d.
After deciding the financial requirement, the finance manager should concentrate on how, where
and when to obtain finances.

Question 42
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This type of institution focuses on assisting entities in raising capital by underwriting or acting as
the client's agent in the issuance of securities
Select one:

a.
Savings & Loan Association

b.
Credit Unions

c.
Investment banks

d.
Commercial Banks

Question 43
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When classified on the basis of source of generation, which does not belong to the group?
Select one:

a.
Debentures

b.
Retained earnings

c.
Preference shares

d.
Loan from banks

Question 44
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Preference shares are unsecured promissory note issued by a firm to raise funds to meet short-
term debt obligations.
Select one:
True
False 

Question 45
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 Flag question

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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.
Direct materials budget

b.
Sales budget

c.
Production budget

d.
Selling and administrative expense budget

Question 46
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A finance professional is using a percent change analysis of financial statements. He used the
formula (Most recent value - Base period value)/Base period value. He is using a _________
type of analysis.
Select one:

a.
Zigzag

b.
Horizontal
c.
Diagonal

d.
Vertical

Question 47
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The _____ method of inventory control is a method which controls expensive inventory items
more closely than less expensive items.
Select one:

a.
Working capital management

b.
ABC

c.
Accounts receivable

d.
Cash management

Question 48
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He is accountable for the accounting operations of the company.
Select one:
a.
Operations Manager

b.
Chief Financial Officer

c.
Controller

d.
Treasurer

Question 49
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Finance is the art and science that describes the management, creation and study of money,
banking, credit, investments, assets and liabilities.
Select one:
True 
False

Question 50
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"Statement I. Financial Analysis is the selection, evaluation and interpretation of financial data
along with other pertinent information to assist in investment and financial decision-making.

Statement II. Financial Analysis may be used externally to evaluate issues such as employee
performance, efficiency of operations and credit policies."
Select one:
a.
Both Statements are False

b.
Both Statements are True

c.
Statement I is False; Statement II is True

d.
Statement I is true; Statement II is false