REVIEW
QUESTION #1
Question:
They are responsible in performing
all areas of management: planning,
organizing, staffing, directing and
controlling.
Answer: President or CEO
QUESTION #2
Question:
The highest policy making
body in a corporation
Answer: Board of Directors
QUESTION #3
Question:
Responsible in determining
the
appropriate
capital
structure of the company
Answer: VP for Finance
QUESTION #4
Question:
Responsible
in
providing
assistance in payroll preparation,
payment
of
vendors,
and
collection of receivables.
Answer: VP for Administration
QUESTION #5
Question:
Resposible in promoting good
relationships with customers and
distributors.
Answer: VP for Marketing
QUESTION #6
Question:
It deals with decisions that are
supposed to maximize the value
of shareholders’ wealth.
Answer: Finance Management
QUESTION #7
Question:
It is a tool to assess whether the
investment will be profitable in
the long run.
Answer: Capital Budgetting
analysis
QUESTION #8
Question:
______decisions are needed
when the company is in an
excess cash position.
Answer: Short Term
Investment
QUESTION #9
Question:
It deals with the daily operations
of the company.
Answer: Operating Decisions
QUESTION #10
Question:
____are paid by corporations to
existing shareholders based on their
shareholdings in the company as a
return on their investment.
Answer: Cash dividends
QUESTION #11
Question:
____is a real or a virtual document
representing a legal agreement
involving some sort-of monetary
value
Answer: Financial Instruments
QUESTION #12
Question:
____are organized forums in which
the suppliers and users of various
types of funds can make transactions
directly.
Answer: Financial Markets
QUESTION #13
Question:
____ is a venue wherein securities
with short-term maturities (1 year or
less) are sold.
Answer: Money Market
QUESTION #14
Question:
____ is a venue wherein securities
with longer-term maturities
Answer: Capital Market
QUESTION #15
Question:
Financial market in which preowned
securities (those that are not new
issues) are traded.
Answer: Secondary Market
QUESTION #16
Question:
Financial market in which securities
are initially issued; the only market in
which the issuer is directly involved in
the transaction.
Answer: Primary Market
QUESTION #17
Question:
____ are intermediaries that channel
the
savings
of
individuals,
businesses, and governments into
loans or investments
Answer: Financial institutions
QUESTION #18
Question:
Financial institutions that receive
payments from employees and invest
the proceeds on their behalf.
Answer: Pension Funds
QUESTION #19
Question:
___are owned by investment companies
which enable small investors to enjoy the
benefits of investing in a diversified portfolio
of securities purchased on their behalf by
professional investment managers.
Answer: Mutual Funds
QUESTION #20
Question:
___is an important aspect of the firm’s
operations because it provides road maps for
guiding, coordinating, and controlling the
firm’s actions to achieve its objectives
Answer: Planning
QUESTION #21
Question:
___is the act of estimating revenue and
expenses over a period of time.
Answer: Budgetting
QUESTION #22
Question:
The most important account in the financial
statement in making a forecast
Answer: Sales
QUESTION #23
Question:
It provides information regarding the number of
units that should be produced over a given
accounting period based on expected sales and
targeted level of ending inventories.
Answer: Production Budget
QUESTION #24
Question:
It refers to the variable and fixed costs needed to
run the operations of the company but are not
directly attributable to the generation of sales.
Answer: Operations Budget
QUESTION #25
Question:
It provides information regarding the company’s
expected cash receipts and disbursements over a
given period.
Answer: Cash Budget
QUESTION #26
Question:
This
includes
collections
from
receivables, proceeds from loans, or
issuance of new shares of stocks and
advances from stockholders.
Answer: Cash Receipts
QUESTION #27
Question:
This is computed by deducting cash
disbursements from the collections for
the period.
Answer: Net cash flow
QUESTION #28
Question:
This includes payments to suppliers and
other service providers, payments for
loans, cash dividends.
Answer: Cash Disbursement
QUESTION #29
Question:
The science
management
of
Answer: Finance
money
QUESTION #30
Question:
_____have fixed returns due
to fixed interest rates.
Answer: Debt Instruments
QUESTION #31
Question:
_____generally have varied returns
based on the performance of the
issuing company.
Answer: Equity Instruments
QUESTION #32
Question:
_____are debt instruments issued
by the Philippine government.
Answer: Treasury bonds and
treasury bills
QUESTION #33
Question:
_____are debt instruments issued
by publicly listed companies.
Answer: Corporate bonds
QUESTION #34
Question:
A ______ is one financial intermediary
handling individual savings. It receives
premium payments that are placed in loans
or investments to accumulate funds to cover
future benefits.
Answer: Life insurance
company
QUESTION #35
Question:
The three basic
inventory are ___
types
of
Answer: Raw materials, Work
in process, and Finished goods
QUESTION #36
Question:
The amount of assets the credit
applicant has available for use in
securing the credit.
Answer: collateral