Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Finance:Ist Quarter > Diagnostic Test > Flashcards

Diagnostic Test Flashcards

You may prefer our related Brainscape-certified flashcards:
Series 65 flashcards Series 63 flashcards Series 66 flashcards Series 7 Top-off Exam flashcards SIE Exam flashcards CFA flashcards Series 79 Top-Off Exam flashcards
1
Q

What do you call a company that owns enough voting stock, so tyat it can control the companies policies and oversess it’s amanagement decisions.

A. Limited Company

B. Unlimited Company

C. Holding Company

D. Private Company

A

C. Holding Company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What do you call a management function that is very much related to another management function, planning?

A. Monitoring

B. Controling

C. Budgeting

D. Evaluating

A

B. Controlling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

This account is the most important financial statement account in forecasting because almost all other accounts in the financial statements is affected by this account?

A. Cash

B. Cost of sales

C. Sales

D. Inventories

A

C. Sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

This schedule provides information reagrding the number of units that should be produces over a given accounting period based on expected sales and targeted level of ending invetories.

A. Sales of budget

B. Sales Forecast

C. Cash Budget

D. Production budget

A

D. Production budget

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

It refers to the current assets used in the operations of teh business which includes cash, accounts receivables, inventories, prepaid expense and can be reduced by liabilities such as trade accounts payable and accrued expenses payable.

A. Working capital

B. Net working capital

C. Total working capital

D. Capital

A

A. Working capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

This term refers to the difference between current assets and current liabilities used in the operations of the business?

A. Capital

B. Total working capital

C. Working capital

D. Net working capital

A

C. Working capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Under this working capital financial policy, some of the permanent working capital requirments are financed by short-term sources of financing.

A. Cummulative

B. Maturity-matching

C. Aggresive

D. Conservative

A

C. Aggresive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

This financial report is prepred in order to find out if the company will be in need of additional funding requirement in the coming accounting period.

A. Sales forecast

B. production budget

C. Cash budget

D. Target cah balance

A

C. Cash budget

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

This type of financing refers to the issuance of new shares of stocks and considered one of te safest source of financing.

A. Debt financing

B. Equity Financing

C. Short-term financing

D. Long-term fiannacing

A

B. Equity Financing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Which of the statement below DOES NOT support the purpose of short-term funds?

A. It is used for working capital requiremnts

B. It is used for bridge financing

C. It is used to buy new equipment

D. It is used to finance day to day operations

A

C. It is used to buy new equiopments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

It is considered as the most patient and safest source of financing

A. Banks

B. Equity Investors

C. Internally generated funds

D. Bond market

A

B. Equity Investors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Which of the following is a disadvantage of relying heavily on debt for fianancing?

A. Lower financial leverage

B. Increased risk of financiala distress

C. Enhanced flexibilty

D. Greater control over the business

A

B. Increased risk of financial distress

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is a primary motivation for companies to choose debt for financing ?

A. Dilution of ownership

B. No obligation to repay

C. Tax advantages

D. Increased control

A

C. Tax advanatges

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

In which situation will a company prefer debt financing over equity financing?

A. When seeking long-term partners

B. When expecting rapid business growth

C. When aiming to minimize interest payments

D. When avoiding financial leverage

A

C. When aiming to minimize interest payments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the potential advantage of equity financing than debt financing?

A. Fixed interest payments

B. Incread financial leverage

C. No ownership dilution

D. No obligation to repay

A

D. No obligation to repay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Which investment portfolio is most likely to have a higher risk return trade off?

A. A diversified portfolio with a mix of stocks and bonds

B. A portfolio consisting solely of governement funds

C. A portfolio focused in low risk, low return investments

D. A portfolio focused on high risk, high return investments

A

D. A portfolio focused on high risk, high return investments

17
Q

If an investor is risk averse, whic type of investment would they prefer?

A. High risks stocks

B. Real estates in a volatile market

C. Government bonds

D. Start-up business

A

C. Government bonds

18
Q

Which of the following best describes a low risk low return invest,ent?

A. Stocks

B. Real estate

C. Bonds

D. Cryptocurrency

A

C. Bonds

19
Q

What id the terrm being reffereed to of the 30 largest and most actovely traded companies listed in the philippines stock xchange

A. PSE all stocks

B. PSE main index

C. PSE sector indices

D. PSE all share index

A

B. PSE main index

20
Q

What does the sayong “a pesi today worth more than the peso tomorrow” imply?

A. The value of the peso is increasing everday

B. The value of the peso is decreasing everyday

C. The value of money decreases over time due to factors like inflation

D. The value of money increases over time due to factore like interst rates

A

C. The value of money decreases over time due to factors like inflation

21
Q

Your frind invested 50,000 in corporate bonds that yields 5% interest compounded annually for two years. How much is the value of your frinds investment at the end of two years?

A. 2,500

B. 5,000

C. 52,625

D. 52,000

A

C. 52,625

22
Q

Roland depositen 50,000 he saved from his daily allowance in a time deposit accoount in Metro Bank at a rate of 8% per annum. The time deposit will mature in 6 months. How much interst did Roland receive after 6 monts?

A. 2,000

B. 4,000

C. 52,000

D. 54,000

A

A. 2,000

23
Q

Hero borrowed from your frienf 15,000 to buy a new mobile phone. Your friend charged him 10% for the borrowe amount payable after 2 years. How much would Hero pay to your friend after 2 years?

A. 1,500

B. 3,000

C. 16,500

D. 18,000

A

C. 16,500

24
Q

Aera put her first salary 30,000 in a special time deposit account that provides an interest of 5% for 3 months. If aera opted to extend her time deposit for another 3 months, how much interst did aera get in her time deposit?

A. 1,500

B. 3,000

C. 31,500

D. 33,000

A

B. 3,000

25
Q

Meko obtained a car loan for 600,000. with annual interat rate of 15% for 5 years. How much is the total interst paid for 3 years?

A. 90,000

B. 270,000

C. 450,000

D. 630,000

A

B. 270,000

Business Finance:Ist Quarter (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions