ST.

VINCENT COLLEGE
• Leganes • Pototan • Ivisan
SPECIAL TOPICS IN FINANCIAL MANAGEMENT (FM6) QUIZ NO.4
GENERAL INSTRUCTION: Use blue ballpen in shading your answers. Fully shade the box when answering and double shading
is not acceptable.

Choose between A or B when answering the statements. A for

correct statement and B if otherwise. 13. The following are other names of receivables except,
A. Accounts receivables C. Book credits
1. The higher the accounts receivable turnover, the better for B. Customer receivables D. Trade receivables
the company.
14. These are procedures for collecting accounts receivable
2. Management of accounts receivable involves formulation when they are due
and administration of plans and policies related to sale on A. Collection policy C. Credit analysis
account and ensuring the maintenance of receivables at a B. Credit terms D. Credit policy
predetermined level and their collectability as planned.

3. Receivables represent amounts owed to the firm as a result 15. It refers to is the maximum amount of a credit customer
of sale of goods or services in the ordinary course of can owe the selling at any one time.
business. A. Credit scoring C. Credit standard
B. Line of credit D. Credit terms
4. Receivables are claims of the customers against the firms
and form part of its current assets. 16. One of the five key dimensions of applicants credit
worthiness that refers to the probability that the customers
5. The purpose of maintaining or investing in receivables is to will pay their debts.
meet competition, and to decrease the sales and increase A. Capital C. Capacity
profits. B. Collateral D. Character

6. One of the ways of accelerating receivables is to speed up 17. It refers to credit period and any discount offered for early
mailing time of payments from customers to the firm. payment. It also specifies the repayment terms required of
a firm’s credit customer.
7. The objective of accounts receivable management is to A. Collection policy C. Credit analysis
have both the optimal amount of receivables outstanding B. Credit terms D. Credit policy
and the optimal amount of bad debts and other cost.
18. One of the five key dimensions of applicants credit
8. The more the credit sales of a company, the lesser the worthiness that refers to the judgement of customer’s ability
accounts receivable balance. to pay.
A. Capital C. Capacity
9. A too stringent credit policy of the company, the longer they B. Collateral D. Character
can collect their accounts receivable.
19. A change in credit policy accelerated the collection of
10. The credit standard should be too stringent or too tight which accounts receivable. As a result the company experienced
may eliminate the risk of non- payment, but also eliminate A. A decrease in discounts taken by customers
potential sales to rejected customers. B. An increase in the average collection period
C. An increase in the receivable balance
11. A proper collection of receivables is essential for receivables D. A decrease in bad debts
management.
20. The following are the determinants of the size of accounts
12. Bad debts are the amounts which the customers fail to pay receivable, except
to the firms. The longer the receivable is outstanding, the A. Volume of credit sales C. Credit extension
greater the risk of bad debts. practices and policies
B. Terms of sale D. Cost of sales

FM6 – QUIZ NO. 4 (A)

Name: _______________________________
Course and Section: BSBA – 4___ Score : __________________

A B C D E A B C D E A B C D E A B C D E

1. [ ] [ ] [ ] [ ] [ ] 6. [ ] [ ] [ ] [ ] [ ] 11. [ ] [ ] [ ] [ ] [ ] 16. [ ] [ ] [ ] [ ] [ ]

2. [ ] [ ] [ ] [ ] [ ] 7. [ ] [ ] [ ] [ ] [ ] 12. [ ] [ ] [ ] [ ] [ ] 17. [ ] [ ] [ ] [ ] [ ]

3. [ ] [ ] [ ] [ ] [ ] 8. [ ] [ ] [ ] [ ] [ ] 13. [ ] [ ] [ ] [ ] [ ] 18. [ ] [ ] [ ] [ ] [ ]

4. [ ] [ ] [ ] [ ] [ ] 9. [ ] [ ] [ ] [ ] [ ] 14. [ ] [ ] [ ] [ ] [ ] 19. [ ] [ ] [ ] [ ] [ ]

5. [ ] [ ] [ ] [ ] [ ] 10. [ ] [ ] [ ] [ ] [ ] 15. [ ] [ ] [ ] [ ] [ ] 20. [ ] [ ] [ ] [ ] [ ]

 ST. VINCENT COLLEGE
• Leganes • Pototan • Ivisan
SPECIAL TOPICS IN FINANCIAL MANAGEMENT (FM6) QUIZ NO.4
GENERAL INSTRUCTION: Use blue ballpen in shading your answers. Fully shade the box when answering and double shading
is not acceptable.

Choose between A or B when answering the statements. A for

correct statement and B if otherwise. 13. It refers to credit period and any discount offered for early
payment. It also specifies the repayment terms required of
1. The purpose of maintaining or investing in receivables is to a firm’s credit customer.
meet competition, and to decrease the sales and increase A. Collection policy C. Credit analysis
profits. B. Credit terms D. Credit policy

2. One of the ways of accelerating receivables is to speed up 14. The following are the determinants of the size of accounts
mailing time of payments from customers to the firm. receivable, except
A. Volume of credit sales C. Credit extension
3. The higher the accounts receivable turnover, the better for practices and policies
the company. B. Terms of sale D. Cost of sales

4. Management of accounts receivable involves formulation 15. The following are other names of receivables except,
and administration of plans and policies related to sale on A. Accounts receivables C. Book credits
account and ensuring the maintenance of receivables at a B. Customer receivables D. Trade receivables
predetermined level and their collectability as planned.
16. These are procedures for collecting accounts receivable
5. The credit standard should be too stringent or too tight which when they are due
may eliminate the risk of non- payment, but also eliminate A. Collection policy C. Credit analysis
potential sales to rejected customers. B. Credit terms D. Credit policy

6. A proper collection of receivables is essential for receivables 17. A change in credit policy accelerated the collection of
management. accounts receivable. As a result the company experienced
A. A decrease in discounts taken by customers
7. Receivables represent amounts owed to the firm as a result B. An increase in the average collection period
of sale of goods or services in the ordinary course of C. An increase in the receivable balance
business. D. A decrease in bad debts

8. Receivables are claims of the customers against the firms 18. It refers to is the maximum amount of a credit customer
and form part of its current assets. can owe the selling at any one time.
A. Credit scoring C. Credit standard
9. The objective of accounts receivable management is to B. Line of credit D. Credit terms
have both the optimal amount of receivables outstanding
and the optimal amount of bad debts and other cost. 19. One of the five key dimensions of applicants credit
worthiness that refers to the probability that the customers
10. The more the credit sales of a company, the lesser the will pay their debts.
accounts receivable balance. A. Capital C. Capacity
B. Collateral D. Character
11. A too stringent credit policy of the company, the longer they
can collect their accounts receivable. 20. One of the five key dimensions of applicants credit
worthiness that refers to the judgement of customer’s ability
to pay.
12. Bad debts are the amounts which the customers fail to pay A. Capital C. Capacity
to the firms. The longer the receivable is outstanding, the B. Collateral D. Character
greater the risk of bad debts.

FM6 – QUIZ NO. 4 (B)

Name: _______________________________
Course and Section: BSBA – 4___ Score : __________________

A B C D E A B C D E A B C D E A B C D E

1. [ ] [ ] [ ] [ ] [ ] 6. [ ] [ ] [ ] [ ] [ ] 11. [ ] [ ] [ ] [ ] [ ] 16. [ ] [ ] [ ] [ ] [ ]

2. [ ] [ ] [ ] [ ] [ ] 7. [ ] [ ] [ ] [ ] [ ] 12. [ ] [ ] [ ] [ ] [ ] 17. [ ] [ ] [ ] [ ] [ ]

3. [ ] [ ] [ ] [ ] [ ] 8. [ ] [ ] [ ] [ ] [ ] 13. [ ] [ ] [ ] [ ] [ ] 18. [ ] [ ] [ ] [ ] [ ]

4. [ ] [ ] [ ] [ ] [ ] 9. [ ] [ ] [ ] [ ] [ ] 14. [ ] [ ] [ ] [ ] [ ] 19. [ ] [ ] [ ] [ ] [ ]

5. [ ] [ ] [ ] [ ] [ ] 10. [ ] [ ] [ ] [ ] [ ] 15. [ ] [ ] [ ] [ ] [ ] 20. [ ] [ ] [ ] [ ] [ ]

 ST. VINCENT COLLEGE
• Leganes • Pototan • Ivisan
SPECIAL TOPICS IN FINANCIAL MANAGEMENT (FM6) QUIZ NO.4
GENERAL INSTRUCTION: Use blue ballpen in shading your answers. Fully shade the box when answering and double shading
is not acceptable.

Choose between A or B when answering the statements. A for

correct statement and B if otherwise. 13. These are procedures for collecting accounts receivable
when they are due
1. A proper collection of receivables is essential for receivables A. Collection policy C. Credit analysis
management. B. Credit terms D. Credit policy

2. Receivables represent amounts owed to the firm as a result 14. A change in credit policy accelerated the collection of
of sale of goods or services in the ordinary course of accounts receivable. As a result the company experienced
business. A. A decrease in discounts taken by customers
B. An increase in the average collection period
3. Receivables are claims of the customers against the firms C. An increase in the receivable balance
and form part of its current assets. D. A decrease in bad debts

4. The purpose of maintaining or investing in receivables is to 15. It refers to credit period and any discount offered for early
meet competition, and to decrease the sales and increase payment. It also specifies the repayment terms required of
profits. a firm’s credit customer.
A. Collection policy C. Credit analysis
5. One of the ways of accelerating receivables is to speed up B. Credit terms D. Credit policy
mailing time of payments from customers to the firm.
16. The following are the determinants of the size of accounts
6. The higher the accounts receivable turnover, the better for receivable, except
the company. A. Volume of credit sales C. Credit extension
practices and policies
7. Management of accounts receivable involves formulation B. Terms of sale D. Cost of sales
and administration of plans and policies related to sale on
account and ensuring the maintenance of receivables at a 17. The following are other names of receivables except,
predetermined level and their collectability as planned. A. Accounts receivables C. Book credits
B. Customer receivables D. Trade receivables
8. The credit standard should be too stringent or too tight which
may eliminate the risk of non- payment, but also eliminate 18. It refers to is the maximum amount of a credit customer
potential sales to rejected customers. can owe the selling at any one time.
A. Credit scoring C. Credit standard
9. The objective of accounts receivable management is to B. Line of credit D. Credit terms
have both the optimal amount of receivables outstanding
and the optimal amount of bad debts and other cost. 19. One of the five key dimensions of applicants credit
worthiness that refers to the probability that the customers
10. The more the credit sales of a company, the lesser the will pay their debts.
accounts receivable balance. A. Capital C. Capacity
B. Collateral D. Character
11. A too stringent credit policy of the company, the longer they
can collect their accounts receivable. 20. One of the five key dimensions of applicants credit
worthiness that refers to the judgement of customer’s ability
12. Bad debts are the amounts which the customers fail to pay to pay.
to the firms. The longer the receivable is outstanding, the A. Capital C. Capacity
greater the risk of bad debts. B. Collateral D. Character

FM6 – QUIZ NO. 4 (C)

Name: _______________________________
Course and Section: BSBA – 4___ Score : __________________

A B C D E A B C D E A B C D E A B C D E

1. [ ] [ ] [ ] [ ] [ ] 6. [ ] [ ] [ ] [ ] [ ] 11. [ ] [ ] [ ] [ ] [ ] 16. [ ] [ ] [ ] [ ] [ ]

2. [ ] [ ] [ ] [ ] [ ] 7. [ ] [ ] [ ] [ ] [ ] 12. [ ] [ ] [ ] [ ] [ ] 17. [ ] [ ] [ ] [ ] [ ]

3. [ ] [ ] [ ] [ ] [ ] 8. [ ] [ ] [ ] [ ] [ ] 13. [ ] [ ] [ ] [ ] [ ] 18. [ ] [ ] [ ] [ ] [ ]

4. [ ] [ ] [ ] [ ] [ ] 9. [ ] [ ] [ ] [ ] [ ] 14. [ ] [ ] [ ] [ ] [ ] 19. [ ] [ ] [ ] [ ] [ ]

5. [ ] [ ] [ ] [ ] [ ] 10. [ ] [ ] [ ] [ ] [ ] 15. [ ] [ ] [ ] [ ] [ ] 20. [ ] [ ] [ ] [ ] [ ]