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Business Finance Summative Test 3

This document is a summative assessment test for a business finance class. It contains 10 multiple choice questions testing concepts related to cash budgets, production budgets, financial statements, inventory, receivables, and gross profit. The test asks students to choose the correct answer for each question and write their responses on a clean sheet of paper. It records the student's name, grade/section, score, and requires a parent's signature and date. The questions cover topics such as the purpose of a cash plan for a bank, negative aspects of inventory holding, basic receivables decisions, how assets relate to liabilities and equity, accounts needed for a cash budget, what a production budget provides, and what must be considered to derive

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Juanito II Balingsat
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211 views3 pages

Business Finance Summative Test 3

This document is a summative assessment test for a business finance class. It contains 10 multiple choice questions testing concepts related to cash budgets, production budgets, financial statements, inventory, receivables, and gross profit. The test asks students to choose the correct answer for each question and write their responses on a clean sheet of paper. It records the student's name, grade/section, score, and requires a parent's signature and date. The questions cover topics such as the purpose of a cash plan for a bank, negative aspects of inventory holding, basic receivables decisions, how assets relate to liabilities and equity, accounts needed for a cash budget, what a production budget provides, and what must be considered to derive

Uploaded by

Juanito II Balingsat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Republic of the Philippines

Department of Education
REGION I
SCHOOLS DIVISION OF CANDON CITY
Candon City, Ilocos Sur

1st Quarter Summative Assessment


Written Work 3
BUSINESS FINANCE
SY 2021-2022
Name: __________________________________ Score: __________________________
Grade/Section ___________________________ Parent’s Signature: _______________
Date signed :_______________
I. Multiple Choice. Choose the letter of the correct answer and write in a clean sheet of
paper.
___1. As a bank manager, one must have to establish a cash plan wherein this establishes a
marketable business. Which among the selection best describes this purpose?
A. Maximizing the wealth of the owners of the enterprise.
B. Maximize cash outflow
C. Minimize cash balances
D. Zero cash balance
___2. Which of the following selection shows NEGATIVE aspect of inventory holding?
A. It limits cash inflow
B. Spoilage and deterioration of inventories
C. It adds cost of storage
D. all of the above
___3. Which of the following is NOT a basic decision which is to be made regarding
receivables?
A. To which customers credit should be allowed
B. How much cash is to be kept in a bank
C. How much of credit to be given to each customer
D. For what length of time the credit should be allowed
____4. How do we relate assets compared to liabilities and owner’ equity in the Projected
Statement of Financial Position?
A. Assets = Liabilities + Owner’s Equity
B. Liabilities = Assets + Owner’s Equity
C. Owner’s Equity = Assets + Liabilities
D. Assets = Liabilities – Owner’s Equity
------5. Which does not belong to the group in terms of Cash Budget?
A. Issue of Capital
B. Dividends Payable
C. Utilities Expenditures
D. Total Sales Figure
------6. Which of the following provides information on units required to be purchased or
produced?
A. Cash Budget
B. Production Budget
C. Operations Budget
D. None of the above
_____7. Which of the selection of information is needed to form the cash budget?
A. Sales Budget, Production Budget, Cash Inflow
B. Sales Budget, Production Budget, Operation Budget
Business Finance- Summative Test 3- Page 1
Republic of the Philippines
Department of Education
REGION I
SCHOOLS DIVISION OF CANDON CITY
Candon City, Ilocos Sur

C. Sales Budget, Operation Budget, Cash Inflow


D. Operation Budget, Production Budget, Cash Inflow
____8. The financial manager created Cash Budget. Which among the group accounts are
needed to complete the Cash Budget?
A. Cash Receipts, Cash Disbursement, Beginning Cash, Required Ending Cash
Balance
B. Cash Receipts, Cash Disbursement, Beginning Cash, Net Cash Flow
C. Cash Receipts, Cash Disbursement, Excess Cash Balance, Required Ending Cash
Balance
D. Cash Receipts, Net Cash Flow, Beginning Cash, Required Ending Cash Balance
____9. Which of the following is related to Production Budget?
A. Projected Sales
B. Cash Inflow
C. Inventories
D. Accounts Receivables
____10. What accounts must be considered in deriving gross profit?
A. Net Sales and Operating Expenses
B. Net Sales and Operating Income
C. Net Sales and Cost of Sales
D. Net Sales and Net Income

Business Finance- Summative Test 3- Page 2


Republic of the Philippines
Department of Education
REGION I
SCHOOLS DIVISION OF CANDON CITY
Candon City, Ilocos Sur

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