Quiz

Question 1 (1 point)

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Given the table, compute for the following:

Credit Sales *	10,000,000	Current Ratio	2 times
Gross Profit Margin	60%	Total Debt to Total Asset Ratio	60%
Ave. Collection Period	35 days	Total Asset Turnover	2 times
No. of Days in a Year	365 days	Inventory Turnover	4 times

* All sales are credit sales. Sales level is the same for the year

** Inventory level is constant throughout the year

How much is the cost of goods sold?

Question 1 options:

	4,000,000
	P0
	P6,000,000
	P2,000,000

Question 2 (1 point)

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Given the same interest, a P1100 peso investment will have a __________ value for longer time periods.

Question 2 options:

	higher
	lower
	zero
	the same

Question 3 (1 point)

Given a current ratio of 3.0 and a current assets value of P9,000,000, how much is the current liabilities?

Question 3 options:

	P1,000,000
	P2,000,000
	P4,000,000
	P3,000,000

Question 4 (1 point)

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Given the table, compute for the following:

Credit Sales *	10,000,000	Current Ratio	2 times
Gross Profit Margin	60%	Total Debt to Total Asset Ratio	60%
Ave. Collection Period	35 days	Total Asset Turnover	2 times
No. of Days in a Year	365 days	Inventory Turnover	4 times

* All sales are credit sales. Sales level is the same for the year

** Inventory level is constant throughout the year

How much is the Total Assets amount?

Question 4 options:

	P5M
	P4M
	P6M
	P3M

Question 5 (1 point)

What is the present value of P2,000 invested at the end of year 1, P0 in year 2, and P1,000 in year 3, given an opportunity rate of 10%?

Question 5 options:

	P2,458.00
	P2,600.32
	P2,500.00
	P2,569.50

Question 6 (1 point)

Ariel wants to know how much money will he have at the end of one year if he invests P1000 today at 9% interest compounded annually?

Question 6 options:

	P1,900
	P2,000
	P1,090
	P1,450

Question 7 (1 point)

When the current ratio index shows .50, it means that

Question 7 options:

	The current liabilities are greater than the total current assets
	The total assets cannot cover its maturing obligations
	Current liabilities are less than the current assets
	The current assets are not sufficient to cover the total liabilities

Question 8 (1 point)

Given the table, compute for the following:

Credit Sales *	10,000,000	Current Ratio	2 times
Gross Profit Margin	60%	Total Debt to Total Asset Ratio	60%
Ave. Collection Period	35 days	Total Asset Turnover	2 times
No. of Days in a Year	365 days	Inventory Turnover	4 times

* All sales are credit sales. Sales level is the same for the year

** Inventory level is constant throughout the year

How much is the inventory value?

Question 8 options:

	P2,000,000
	P3,000,000
	P1,000,000
	P4,000,000

Question 9 (1 point)

It is a summary of the financial operations for a period in review.

Question 9 options:

	Balance Sheet
	Logistical Supplies Report
	Cash Flow Statement
	Income Statement

Question 10 (1 point)

When we speak of liquidity, we normally look at the

Question 10 options:

	obligations of the firm
	current assets
	current liabilities
	current assets and current liabilities

Question 11 (1 point)

What is the future value of P2,000 invested at the end of year 1, P0 in year 2, and P1,000 in year 3, given an interest rate of 10%?

Question 11 options:

	P2,340
	P4,320
	P3,420
	P3,240

Question 12 (1 point)

Given the table, compute for the following:

Credit Sales *	10,000,000	Current Ratio	2 times
Gross Profit Margin	60%	Total Debt to Total Asset Ratio	60%
Ave. Collection Period	35 days	Total Asset Turnover	2 times
No. of Days in a Year	365 days	Inventory Turnover	4 times

* All sales are credit sales. Sales level is the same for the year

** Inventory level is constant throughout the year

How much is the accounts receivable?

Question 12 options:

	P600,200
	P875,000
	P958,904
	P500,000

Question 13 (1 point)

John wants to know how much will he have at the end of 6 years given an investment of P2,000 with an interest of 6% compounded annually?

Question 13 options:

	P3,600
	P2,837.04
	P2,586.32
	P2,500

Question 14 (1 point)

When the return on sales (also known as net profit margin) is negative, what does this mean?

Question 14 options:

	The tax amount is higher than sales
	Cost of goods and operating expenses are higher than sales
	Costs and expenses combined are bigger than sales
	Sales is smaller compared to net income

Question 15 (1 point)

If Company B has an average collection of 80 days against the industry average of 30 days, what does this imply?

Question 15 options:

	Company B collects faster than the industry average
	Company B collects slower than the industry average
	Company B collects higher than the industry average
	The industry has a problem

Question 16 (1 point)

What is the present value of P1000 at the end of 2 years, given an opportunity cost of 5% compounded annually?

Question 16 options:

	P980.03
	P985.00
	P907.03
	P807.21

Question 17 (1 point)

Which of the accounts is not considered in the Acid Test (Quick Ratio)?

Question 17 options:

	Cash
	Petty Cash
	Inventory
	Accounts Receivable

Question 18 (1 point)

How do you improve the current ratio?

Question 18 options:

	Increase accounts payable
	Borrow long term to increase cash
	Increase expenses
	Borrow short term to increase cash

Question 19 (1 point)

__________ is a snapshot of the company's financial standing as of given date.

Question 19 options:

	Balance Sheet
	Cash Position
	Cash Flows
	Income Statement

Question 20 (1 point)

Which among the accounts is a non-depreciable asset?

Question 20 options:

	Equipment
	Furniture
	Building
	Land

Question 21 (1 point)

Comparing Company A's performance in 2020 against its previous years' performance is called

Question 21 options:

	regression analysis
	critical analysis
	pandemic analysis
	trend or time series analysis

Question 22 (1 point)

What is the possible negative consequence of the food business having a long average age of inventory (Days Sales Inventory; Inventory Period)

Question 22 options:

	Price Ceiling might be reached
	Products may become spoiled or expired
	Shortage of Supply
	Products will command higher prices

Question 23 (1 point)

If the inventory turnover of a company is 1.0, what does it mean?

Question 23 options:

	One batch of inventory gets to be sold in one year.
	Sales is selling faster than what the company can produce
	The company is suffering from inventory stock outs
	The company is selling its inventories everyday

Question 24 (1 point)

Given the table, compute for the following:

Credit Sales *	10,000,000	Current Ratio	2 times
Gross Profit Margin	60%	Total Debt to Total Asset Ratio	60%
Ave. Collection Period	35 days	Total Asset Turnover	2 times
No. of Days in a Year	365 days	Inventory Turnover	4 times

* All sales are credit sales. Sales level is the same for the year

** Inventory level is constant throughout the year

How much is the gross profit?

Question 24 options:

	P10,000,000
	P6,000,000
	P5,000,000
	P3,000,000

Question 25 (1 point)

Can we have a negative current ratio?

Question 25 options:

	Yes
	No

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