DAVAO ORIENTAL STATE UNIVERSITY 10. All are example of variable expenses, EXCEPT?

CATEEL EXTENSION CAMPUS A. Groceries

Cateel, Davao Oriental B. Gasoline
PRELIM EXAMINATION C. Food
ELECTIVE 100 - PERSONAL FINANCE D. Rent

General Instruction: Write your answer in a separate paper. Identification: Write the correct answer on your paper.
NO erasures, alterations and superimposition. 1. It is also known as net profit margin or net profit rate, it
measures the percentage of income derived from peso sales.
Multiple Choice 2. In financial analysis, it is the measure of the return on
1. All are objectives of preparing financial statements, EXCEPT? investment.
A. Ascertaining the results of business operations 3. In financial analysis, it evaluates the ability of the company
B. Ascertaining the financial position to pay short term obligations using current assets.
C. Source of information 4. Also known as quick ratio, it measures the ability of the
D. Source of deposits company to pay short term obligations using liquid assets.
2. The following are basic accounting statements, EXCEPT?
5. Also known as inventory turnover in days, it represents
A. Balance Sheet
6. It is a financial statement that reports a company’s financial
B. Income Statement
C. Cash Flow Statement performance over a specific accounting period.
D. Operating Income 7. It is a card issued by a financial company giving the holder
3. GAAP stands for- an option to borrow funds, usually at point of sale.
A. Generally Accepted Accounting Principle 8. It is the amount charged, expressed as a percentage of
B. Generally Appropriate Accounting Principle principal, by a lender to a borrower for the use of assets.
C. Gross Accepted Accounting Principle 9. It is any income that is realized as a result of business
D. Gross Appropriate Accounting Principle activity.
4. You sacrifice something to obtain something else that you 10. It refers to the peace of mind you feel when you aren’t
consider more desirable. This is an example of- worried about your income being enough to cover your
A. Deferred Income expenses. It also means that you have enough money saved to
B. Prepaid Expense cover emergencies and your future financial goals.
C. Financial Acquisitions
11. Its currency has less value because it is less useful; that is,
D. Opportunity Costs
less can be bought with it. Prices are rising.
5. What does the acronym SMART stand for?
A. Suitable, measurable, actionable, rewarded and timely 12. An estimated value of the total worth of a country’s
B. Specific, measurable, actionable, resourced and timely production and services, within its boundary, by its nationals
C. Standardized, measurable, achievable, rewarded and timely and foreigners, calculated over the course of one year.
D. Specific, measurable, achievable, rewarded and timely 13. It measures the average nationwide prices of a “basket” of
6. It is the process of effectively managing assets in the goods and services purchased by the average consumer. It is
possession of an individual or a family. an accepted way of tracking rising or falling price levels.
A. Personal Financial Planning 14. It is the original cost of the asset adjusted upwards for
B. Refinancing improvements and downwards for the loss in value.
C. Financial Statements 15. It is a financial statement which specifies the sources and
D. Personal Finance uses of cash from operating, investing and financing activities.
7. It is the process of managing your money to achieve
personal economic satisfaction.
Enumeration:
A. Personal Financial Planning
1-4 Basic Accounting Reports/Statement
B. Refinancing
C. Financial Statements 5-10 The Financial Planning Process
D. Personal Finance 11-15 Acronym of SMART in goal setting guidelines
8. It is prepared to ascertain the profits earned or losses 16-20 Economic indicators that influence financial decisions
incurred by a business concern during a specified period.
A. Personal Financial Planning Illustration:
B. Refinancing 1-5 Present how Gross Profit is calculated.
C. Financial Statements 6-10 Present how Interest is calculated.
D. Personal Finance 11-15 Show the diagram of the Financial Planning Process.
9. It is the process of framing objectives, policies, procedures, 16-20 List atleast five (5) Financial Ratios with corresponding
programmes and budgets regarding the financial activities of formula.
an individual.
A. Financial Planning Essay: Explain the following using 1 (one) sentence only.
B. Refinancing 1. Explain the importance of Finance. (5 pts)
C. Financial Statements 2. Explain Financial Planning Process. (5 pts)
D. Personal Finance 3. Why there is a need to Insure your Investments. (5 pts)
4. Explain the various objectives of financial statements. (5pts)