11. ____________ refers to the current assets used in the operation of the business.

a. Cash Flow b. Financing Policy c. Working Capital d. None of the above

12. This includes collections from receivables, proceeds from loans of new shares of stocks and advances.
a. Cash disbursement b. Target cash balance c. Cash receipts d. None of the above
13. _____________ is the amount of cash the management wants to maintain at all times given its present level of
operations, stability of cash flows, and the macroeconomic and political conditions.
a. Cumulative excess cash b. Cash receipts c. Target cash balance d. Cash disbursement
14. This is the most important part of the cash budget where the possible funding requirements are shown.
a. Cash receipts b. Target cash balance c. Cash disbursement d. Net cash flow for the period
15. This is computed by deducting cash disbursements from the collections
a. Net cash flow for the period b. Cash disbursement c. Target cash balance d. Cumulative excess cash
16. This section includes payments to suppliers and other service providers, payments for loans, and cash dividends.
a. Cash disbursement b. Target cash period c. Cash receipts d. Cumulative excess cash
17. This refers to the integrity and reputation of the customer.
a. Condition b. Collateral c. Character d. Capacity
18. This refers to the amount of capital invested by the owner or in this case, the customer, into his company.
a. Collateral b. Condition c. Character d. Capital
19. One describes the environment where the company operates which may affect the ability of a customer to pay.
a. Condition b. Character c. Capital d. Collateral
20. This can be guarantees provided by the customer to support his exposure with the company.
a. Condition b. Character c. Capital d. Collateral

Test II. Write T if the statement is True and write F is the statement is False. Underline the word that make it False.
(2 points each)

___ 1. Leverage ratios measure the ability of a company to pay maturing obligations from its current assets.
___ 2. Net profit margin measures how much net profit a company generates for every peso of sales
___ 3. Gross profit margin is a profitability ratio that measures the ability of a company to cover it cost of goods
sold from its sales.
___ 4. Liquidity ratios show the capital structure of a company, that is, how much of the total assets of a company is
financed by debt and how much is financed by stockholders’ equity.
___ 5. Debt ratio measures how much of the total assets are financed by liabilities
___ 6. Interest coverage ratio is a variation of the debt ratio.
___ 7. Debt to equity ratio provides information if a company has enough operating income to cover interest
expense.
___ 8. Inventory turnover ratio measures the company’s efficiency in managing its inventories.
___ 9. Accounts turnover payable turnover ratio provides information regarding the rate by which trade payables are
paid.
___10. Vertical analysis or sometimes called common-size analysis is an important financial statement analysis tool.

“Success consists of going from failure to failure without loss of

enthusiasm”
- Winston Churchill

Vision: An institution of God-fearing, God-loving, and well transformed individuals

Mission: To provide quality education and values formation
Goals: inspired by the school’s vision-mission statement and the Divine Providence, we commit ourselves to: Parent’s signature over printed name:
 become person for others by sharing what we have and what we are;
 have a harmonious relationship among administrators, teachers, parents and students based on Trinitarian Spirituality;
_____________________________________________
 develop a pro-People, a pro-Nation, a pro-Earth, and a pro-God community
Vision: An institution of God-fearing, God-loving, and well transformed individuals
Mission: To provide quality education and values formation
Goals: inspired by the school’s vision-mission statement and the Divine Providence, we commit ourselves to: Parent’s signature over printed name:
 become person for others by sharing what we have and what we are;
 have a harmonious relationship among administrators, teachers, parents and students based on Trinitarian Spirituality;
_____________________________________________
 develop a pro-People, a pro-Nation, a pro-Earth, and a pro-God community