BUSINESS FINANCE Flashcards
Which area of finance whose function is to manage the financial resources of private individuals,
non-government organizations, and private organizations?
Private Finance
This is one of the financial decisions of the Corporate Finance Officer that includes the acquisition
of non-current assets, investment portfolios, and pricing decisions of stocks and bonds?
Investing Decisions
Part of the corporate organization wherein they elect the board of directors and entitled to one
voting right.
Shareholders
A division of Business Finance that answers the question, what kind of assets shall we acquire?
Financial Management
An area in finance that focuses on handling and managing of financial resources of a business
organization?
Business Finance
It acts as the middleperson between the borrowers and investors.
Financial intermediaries
This is where financial instruments are traded.
Financial markets
This is where financial instruments are traded.
Financial markets
Under what financial system is Debenture bond which issues unsecured bond without collateral
belongs?
Financial instrument
An institutions or organizations that provide financial services.
Financial Institutions
Insurance company acts as _________ by pooling together the proceeds of insurance policies sold
to the public.
Financial intermediaries
The business uses a financial budget to:
A. Manage and control the customers.
B. Provide better control and careful transactions.
C. Provide the business with better control and careful planning process.
D. Prevent net operating losses.
C
Which of the following about financial budget preparation is true?
A. Create a financial budget before making an operating budget.
B. Create an operating budget before making a financial budget
C. Use of financial budget to predict production expenses.
D. The Use of the financial budget controls the cash inflows only.
B
Which of the following is a part of the finance budget?
A. cash budget
B. production budget
C. direct materials purchasing budget
D. tax budget
A
The most common budget is prepared for a ________.
Year
Which of the operating budgets is prepared first?
sales budget
The fourth step in preparing a budget is?
determine cash flow and other financial effects.
Operational budget includes the following, except_______.
A. sales budget
B. production / inventory budget
C. cash budget
D. selling and administrative expense budget
C
. It is the most liquid form of asset.
Cash
These are profits for collection which is owed to a business by their customers for the sale
of goods.
accounts receivables
Which is of the following is not included in the basic types of inventory?
A. raw materials
B. work-in-process
C. finished goods
D. capital goods
D
It is used as a sign of sales strength and as a measure of how strong the business looks in
inventory purchases as well as production process.
A. increased purchases
B. increased cost of sales
C. increased stock turnover level
D. increased work in process
C
Accounts receivables are always reflected in the balance sheet as _________.
asset
These are business assets intended for sale.
inventory
Working capital includes the following, except_____.
A. cash
B. accounts receivable
C. inventory
D. property, plant, and equipment
D
Maintenance of______________ level of cash in hand is important for every organization.
A. maximum
B. minimum
C. optimum
D. budgeted
B
Which of the following is NOT an example of accounts receivable?
A. services rendered to client paid in cash
B. goods sold to clients paid in credit card.
C. goods sold to clients paid in bank check.
D. All of the above.
D
Which of the following is the tool used in cash management?
A. cash barcode collection
B. cash ABC analysis
C. cash clear payment terms
D. cash flow statement
D
Which of the following is the tool used for receivables management?
A. receivable barcode collection
B. receivable ABC analysis
C. cash flow statement
D. receivable flow statement
C
Which of the following is the tool used for inventory management?
A. Inventory barcode data collection
B. Inventory ABC analysis
C. Inventory electronic invoicing
D. Inventory flow statement
A
An important tool that can help the company predict problems before they occur and take
steps to mitigate them.
A. cash flow program
B. cash flow statement
C. cash flow budget
D. cash flow forecast
D
. It is usually prepared at the end of every month, and it gives you a snapshot of the
incoming and outgoing cash.
A. cash flow program
B. cash flow statement
C. cash flow budget
D. cash flow forecast
B
