BUSINESS FINANCE

SECOND SEMESTER, FIRST QUARTER

REVIEW QUESTIONS FOR BUSINESS FINANCE 4. Which of the bank plays important role in the
MODULE 1: Introduction of Finance economic development of a bank?
MODULE 2: Review of Accounting Cycle & Financial A. Islamic Bank C. Government Bank
Analysis B. Thrift Bank D. Investment Bank
MODULE 3: Financial Planning Tools
MODULE 4: Formula & Budget Preparation 5. It is a financial institution that caters financing to
Projected Income Statement relatively low-income individuals that require collateral to
guarantee payment.
Compute for Production Budget A. Commercial Bank C. Pawnshops
Problem: B. Cooperative Bank D. Rural Bank
Budgeted Sales for January 2023 is 15,000
units, beginning inventory is 1,500 units and 6. It has the authority to exercise as a commercial bank
ending inventory is 13,000. How much is and is allowed to perform underwriting and other
January production? functions of investment houses.
A. Universal Bank C. Commercial Bank
PU = Expected Units in Sales + Ending – B. Cooperative Bank D. Thrift Bank
Beginning
7. This accepts deposits and provides loans to individual
1. Compute for February Cash Receipts who will undertake ventures in accordance with the
Budgetted Sales for principles of the cooperative.
A. Credit Union C. Islamic Bank
Budgetted Sales January February March
B. Cooperative Bank D. Rural Bank
Forecasted Sales 50,000 60,000 70,000
35,000 42,000
8. This bank is primarily concerned with the mobilization
Total Cash Receipts 15,000
of savings and loans especially for small and medium
Total Budgetted Cash Receipts 57,000
enterprise and individuals.
A. Commercial Bank C. Islamic Bank
70% in the month of Sales
B. Thrift Bank D. Rural Bank
30% after 1 month
9. Which of the following is a thrift bank?
2. Compute for budgeted Cash Payments
A. Cooperative Bank
January February March B. Investment Bank
Forecasted Purchases 30,000 40,000 50,000 C. Rural Bank
D. Savings and Mortgage Bank
Total Cash Payments
10. Why is there a need to prepare a bank appraisal
60% purchases paid in a month report?
40% paid after a month A. To assure that the loan requested is secured by
the market value of the collateral.
Compute for budgeted Cash Payments B. To compare the value of collateral offered by
prospective borrowers.
C. To complete the loan requirements for the
MODULE 5: NEGOTIATION IN A BANK immediate release of loan.
3. For Social Security System members, what is the D. To follow the loan application process requirement
lending facility that provides financial assistance to the checklist given by the bank.
business sector?
A. Bangko Sentral na Pilipinas 11. After an ocular inspection of your plant/workplace as
B. Business Development Loan well as the property being offered as collateral, what
C. Cooperative Development Authority report is made?
D. Development Bank of the Philippines A. Bank appraisal report C. Financial
Statement
 B. Credit investigation report D. Interview report 19. How much is the future value of 3,000 in 2 years with
12. Which bank is approached for bigger loans above P5 an interest of 3% compounded annually?
Million? FV = PV X (1 + R) T / FV = PV X (1 + (R X T)
A. Commercial Bank C. Islamic Bank
B. Cooperative Bank D. Rural Bank

MODULE 6: PRESENT VALUE/ FUTURE VALUE

13. Nominal Interest Rate is also known as ______.
A. Coupon Rate
B. Periodic Interest Rate
C. Effective Interest Rate
D. Annual Percentage Rate

14. The value of money results from its _________.

A. backing C. purchasing power
B. investments D. rates set by the State Bank

15. It is the value of a current asset at a future date

based on an assumed rate of growth.
A. Time Value C. Present Value
B. Future Value D. Interest Value

16. It could be the amount of a single deposit made at

the present time. 20. How much is the value of 5,000 today with the rate of
A. Time Value C. Present Value 2%, terms 3 years?
B. Future Value D. Interest Value PV = FV / (1 + R) N

17. This is the money paid in exchange for borrowing or

using another person's or organization's money.
A. Value C. Investment
B. Interest D. Frequency

18. Mary deposited 5,000 in a bank for 2 years. Compute

for simple interest & compound interest.
I=PXRXT