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    Third - Quarter Sum. Exam in Business Finance

    Uploaded by

    Raul Soriano Cabanting
    1. The document is a summative examination for a business finance class that covers topics like accounting, finance, business ownership structures, financial markets and instruments, and financial ratio analysis. 2. It contains multiple choice and true/false questions testing knowledge of these topics, as well as a problem solving section involving calculating financial ratios for Globe Telecom using its summarized financial statements from 2013 and 2012. 3. Key topics covered include defining finance, accounting and budgeting; distinguishing between sole proprietorships, partnerships and corporations; identifying financial institutions, markets and instruments; and understanding goals and considerations of financial managers like risk, return, and shareholder wealth maximization.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Third - Quarter Sum. Exam in Business Finance

    Uploaded by

    Raul Soriano Cabanting
    2K views3 pages
    1. The document is a summative examination for a business finance class that covers topics like accounting, finance, business ownership structures, financial markets and instruments, and financial ratio analysis. 2. It contains multiple choice and true/false questions testing knowledge of these topics, as well as a problem solving section involving calculating financial ratios for Globe Telecom using its summarized financial statements from 2013 and 2012. 3. Key topics covered include defining finance, accounting and budgeting; distinguishing between sole proprietorships, partnerships and corporations; identifying financial institutions, markets and instruments; and understanding goals and considerations of financial managers like risk, return, and shareholder wealth maximization.

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    1. The document is a summative examination for a business finance class that covers topics like accounting, finance, business ownership structures, financial markets and instruments, and financial ratio analysis. 2. It contains multiple choice and true/false questions testing knowledge of these topics, as well as a problem solving section involving calculating financial ratios for Globe Telecom using its summarized financial statements from 2013 and 2012. 3. Key topics covered include defining finance, accounting and budgeting; distinguishing between sole proprietorships, partnerships and corporations; identifying financial institutions, markets and instruments; and understanding goals and considerations of financial managers like risk, return, and shareholder wealth maximization.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views3 pages

    Third - Quarter Sum. Exam in Business Finance

    Uploaded by

    Raul Soriano Cabanting
    1. The document is a summative examination for a business finance class that covers topics like accounting, finance, business ownership structures, financial markets and instruments, and financial ratio analysis. 2. It contains multiple choice and true/false questions testing knowledge of these topics, as well as a problem solving section involving calculating financial ratios for Globe Telecom using its summarized financial statements from 2013 and 2012. 3. Key topics covered include defining finance, accounting and budgeting; distinguishing between sole proprietorships, partnerships and corporations; identifying financial institutions, markets and instruments; and understanding goals and considerations of financial managers like risk, return, and shareholder wealth maximization.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    CUYAPO NATIONAL HIGH SCHOOL

    Senior High School Curriculum


    ACCOUNTANCY, BUSINESS AND MANAGEMENT
    Second Semester – First Quarter Summative Examination

    ABM 12_BUSINESS FINANCE

    Name: _________________________________________________ Date: _________________


    Grade & Section: _______________________________________ Score: ________________

    Part I. MULTIPLE CHOICE: Write your answer on the space provided.

    _______1. It can be defined as the science and art of managing money.


    a. Budgeting b. Finance c. Accounting d. None of the above

    _______2. It is the act of estimating revenue (in the form of their allowance) and expenses over a period of time
    a. Budgeting b. Finance c. Accounting d. None of the above

    _______3. A business owned by two or more people and operated for profit
    a. Sole Proprietorship b. Partnership c. Corporation d. Mutual

    _______4. A business owned by one person and operated for his profit
    a. Sole Proprietorship b. Partnership c. Corporation d. Mutual

    _______5. An entity created by law owned by shareholders.


    a. Sole Proprietorship b. Partnership c. Corporation d. Mutual

    _______6. Is a market in which financial assets are traded. In addition to enabling exchange of previously issued
    financial assets.
    a. Financial Institution b. Financial Market c. Financial Instrument d. None

    _______7. Is an institution whose primary source of profits is through financial asset transactions.
    a. Financial Institution b. Financial Market c. Financial Instrument d. None

    _______8. These are cash, evidence of an ownership interest in an entity, or a contractual right to receive, or
    deliver, cash or another financial instrument.
    a. Financial Institution b. Financial Market c. Financial Instruments d. None

    _______9. Describes collectively the financial markets, the participants, and the instruments and securities that
    are traded in the said markets.
    a. Financial Institution b. Financial system c. Financial Instruments d. None

    ______10. The primary goal of the financial manager is


    a. minimizing risk b. maximizing profit c. minimizing return d. None

    ______11. Corporate owners receive realizable return through


    a. Earnings per share & cash dividends
    b. Increase in share price and cash dividends
    c. Increase in share price and earnings per share
    d. None

    ______12. The wealth of the owners of a corporation is represented by


    a. profits b. earnings per share c. share value d. None

    ______13. Wealth maximization as the goal of the firm implies enhancing the wealth of
    a. the BOD b. the firm’s employees c. the firm’s stockholder d. None

    ______14. Financial managers evaluating decision alternatives or potential actions must consider
    a. only risk b. only return c. both risk and return d. risk,return,and the impact on share price

    ______15. 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.
    a. Life insurance company b. commercial bank c. savings bank d. None

    1
    ______16. Measures the profitability of a campany
    a. Leverage Ratio b. Liquidity Ratio c. Profitability Ratio d. Efficiency Ratio

    ______17. Show the capital structure of a company.


    a. Leverage Ratio b. Liquidity Ratio c. Profitability Ratio d. Efficiency Ratio

    ______18. Measures the efficiency in utilizing the assets of the company


    a. Leverage Ratio b. Liquidity Ratio c. Profitability Ratio d. Efficiency Ratio

    ______19. Measures the ability of a company to pay maturing obligations from its current assets.
    a. Leverage Ratio b. Liquidity Ratio c. Profitability Ratio d. Efficiency Ratio

    ______20. It is an FS analysis tool in which all accounts in the statement of financial position are presented as a
    percentage of total assets while all accounts of profit or loss are presented as a percentage of sales or revenues.
    a. Vertical Analysis b. Trend Analysis c. Horizontal Analysis d. None

    For No. 21-25. Matching type (Financial Instrument)

    A. Stocks B. Notes C. Preneed Plans D. Cert. of Deposit E. Bonds

    Match each branch to its appropriate description below:


    ________21. Savings certificate entitling the bearer to receive interest.
    ________ 22. A debt investment in which an investor loans money to an entity (corporate/governmental) that
    borrows the funds for a defined period of time at a fixed interest rate.
    ________ 23. A security that signifies ownership in a corporation.
    ________ 24. A financial security that generally has a longer term than a bill, but a shorter term than a bond.
    ________ 25. Denoting a scheme in which one pays in advance for a service or facility. Ex. Educ. Plans

    II. True or False: Write your answer on the space provided

    ________1. To achieve the goal of profit maximization for each alternative being considered, the financial
    manager would select the one is expected to result in the highest monetary return.
    ________2. Dividend payments change directly with changes in earnings per share.
    ________3. The wealth of corporate owners is measured by the share price of the stock.
    ________4. Financial markets are intermediaries that channel the savings of individuals, businesses and
    government into loans or investments.
    ________5. The money market involves trading of securities with maturities of one year or less while the capital
    market involves the buying and selling of securities with maturities of more than one year.
    _______6. High cash flow is generally associated with a higher share price whereas higher risk tends to result in a
    lower share price.
    _______7. When considering each financial decision alternative or possible action in terms of its impact on the
    share price of the firm’s stock, financial managers should accept only those actions that are expected to increase
    the firm’s profitability.
    _______8. To achieve the goal of profit maximization for each alternative being considered, the financial
    manager would select the one that is expected to result in the highest monetary return.
    _______9. Dividends payment change directly with changes in earnings per share.
    _______10. The wealth of corporate owners is measured by the share price of the stock.

    III. Problem Solving (15 Points)


    Below are the summarized financial statements of Globe Telecom for 2013 and 2012 (In Million Pesos)

    2013 2012
    Revenues 95,141 86,446
    Cost and Operating Expenses 89,504 78,033
    Operating Profit 5,637 8,413
    Net Income 4,960 6,845
    Current Assets 35,631 34,028
    PPE, Net 110,424 101,422
    Total Assets 159,079 148,012
    Current Liabilities 54,989 45,826
    Total Liabilities 117,440 102,314
    Total Equity 41,639 45,698

    2
    Compute the following for 2013 and 2012

    a. Return on Equity b. Return on Assets c. Operating Profit Margin


    d. Net Profit Margin e. Current Ration f. Debt Ratio
    g. Total Assets Turnover

    GOOD LUCK …

    Prepared by:

    Raul S. Cabanting
    SHS Teacher

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