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    Business Finance

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    RoNnie RonNie
    The document appears to be a midterm exam for a business finance course consisting of three tests covering topics like forms of inventory, components of credit costs, methods of describing working capital, sources of cash inflows, accounts receivable management, cost of invested funds, treatment of uncollectible accounts, and adequacy of working capital. The exam contains multiple choice, fill-in-the-blank, and true/false questions testing understanding of key financial concepts.

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    Business Finance

    Uploaded by

    RoNnie RonNie
    37 views2 pages
    The document appears to be a midterm exam for a business finance course consisting of three tests covering topics like forms of inventory, components of credit costs, methods of describing working capital, sources of cash inflows, accounts receivable management, cost of invested funds, treatment of uncollectible accounts, and adequacy of working capital. The exam contains multiple choice, fill-in-the-blank, and true/false questions testing understanding of key financial concepts.

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    The document appears to be a midterm exam for a business finance course consisting of three tests covering topics like forms of inventory, components of credit costs, methods of describing working capital, sources of cash inflows, accounts receivable management, cost of invested funds, treatment of uncollectible accounts, and adequacy of working capital. The exam contains multiple choice, fill-in-the-blank, and true/false questions testing understanding of key financial concepts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    37 views2 pages

    Business Finance

    Uploaded by

    RoNnie RonNie
    The document appears to be a midterm exam for a business finance course consisting of three tests covering topics like forms of inventory, components of credit costs, methods of describing working capital, sources of cash inflows, accounts receivable management, cost of invested funds, treatment of uncollectible accounts, and adequacy of working capital. The exam contains multiple choice, fill-in-the-blank, and true/false questions testing understanding of key financial concepts.

    Copyright:

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

    SIBUGAY TECHNICAL INSTITUTE, INC.

    Lower Taway, Ipil, Zamboanga Sibugay


    Email address: [email protected]
    www.sibugaytech.edu.ph

    Midterm Examination
    Business Finance

    Name: _____________________________________________ Date: _______________________________

    Course/Year: _______________________________________ Score: ______________________________

    Test I

    Direction: Read each question carefully and fill in the blank with the correct answer. Write your answer on the space provided
    before each question.

    ____________________1. It refers to the part of the capital of the company which is continually circulating.

    ____________________2. It refers to the ability of the firm to pay its bills on time or meet its current obligation.

    ____________________3. It refers to the capacity of the business to pay its bills or meet its long – term obligation.

    ____________________4. It refers to credit flowing from a large business to small businesses.

    ____________________5. It refers to account receivable uncollected and subsequently written off.

    ____________________6. It refers to the financial resources of the credit applicant

    ____________________7. It refers to the ability of the applicant to operate successfully

    ____________________8. It refers to the reputation for honesty and fair dealing of the applicant or the owners of the firm applying
    for credit.

    ___________________9. It refers to the environment required for the extension of credit

    ___________________10. It is used to determine what quantity to order so as to minimize total inventory costs.

    Test II:

    Enumeration

    1. What are the three major forms of inventory?


    a.
    b.
    c.

    2. What are the three elements of costs of credit?

    a.
    b.
    c.
    3. What are the two ways in describing working capital?
    a.
    b.
    4. Working capital is required for the following purpose, what are those?
    a.
    b.
    c.
    d.
    5. The cash inflows of the firm come from various sources which are briefly described as follows
    a.
    b.
    c.
    d.
    e.
    f.

    Test III:

    Direction: Write the word “TRUE” if the statement is true, otherwise “FALSE” if the statement is false.

    ________1. Account receivable management refers to the activity that keeps track of how many of the procured items needed to
    create a product or service are on hand, where each item is, and who has responsibility for each item.

    _________2. The cost of invested funds refers to the rate at which the firm could borrow funds to finance credit sales.

    ________3. It is okay that working capital must not be adequate to cover all current financial requirements.

    ________4. Assets is sometimes sold by the company for various reasons. Obsolescence is one of those.
    ________5. Activities geared toward s achieving the liquidity objectives of the firm is called liquidity.
    ________6. Uncollectible accounts or bad debts is a contra asset account of account receivable.
    ________7. Bad debts is an expense account.
    ________8. Working capital must always be able to cover fund requirements of the company as they are needed.
    ________9. The level of inventory carried by the company most often affects he profitability of the company.
    ________10. Working capital must be adequate to cover all current financial requirements

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