Diagnostic Test Flashcards
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
C. Holding Company
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
B. Controlling
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
C. Sales
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
D. Production budget
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. Working capital
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
C. Working capital
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
C. Aggresive
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
C. Cash budget
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
B. Equity Financing
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
C. It is used to buy new equiopments
It is considered as the most patient and safest source of financing
A. Banks
B. Equity Investors
C. Internally generated funds
D. Bond market
B. Equity Investors
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
B. Increased risk of financial distress
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
C. Tax advanatges
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
C. When aiming to minimize interest payments
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
D. No obligation to repay
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
D. A portfolio focused on high risk, high return investments
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
C. Government bonds
Which of the following best describes a low risk low return invest,ent?
A. Stocks
B. Real estate
C. Bonds
D. Cryptocurrency
C. Bonds
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
B. PSE main index
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
C. The value of money decreases over time due to factors like inflation
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
C. 52,625
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. 2,000
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
C. 16,500
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
B. 3,000
