Business Finance Reviewer ABM303

Which is NOT included in the total manufacturing cost?

These are not regulated by the government or any other regulatory body.

It is the study of how individuals or business evaluate.

Also known as acid test ratio.

This is a tool used by financial managers to evaluate business performance, to determine freasibility and profitability.

These businesses are engaged in buying and selling products.

This measures overall profitability of the company.

This is used to assess a company's financial health and business model.

Finance conducted by individuals/ consumers

This begins with an understanding of the industry the business belongs to and knowing the target market.

These are issued by banks, credit unions, or finance companies. The maturity rate and default rish both vary

This is a type of non-bank formed using the collective investments pooled together and managed.

This provides an indication of long-term solvency of the firm.

This type of bank focus on raising funds for big corporations and governments.

These bonds are issued by the government. They have no default risks because government will exert all efforts to pay.

This occurs when the management acts their own onterest rather than the interest of the owners of the corporation.

This ratio indicates the percentage of assets funded by the creditors

These are institutions regulated by Securities and Exchange Commission and perform similar functions as banks.

Finance conducted by charitable, civic or religious organizations.

Which of these is the correct way to present the time period of a balance sheet?

If the company's asset are P500,000 and its liabilities are P200,000, what is the owner's equity?

These refer to businesses or professionals who render personal service.

This budget indicate the sales of a firm expects to make in units and money for a budget year.

Which of these would most likely cause the assets of an organization to increase?

A financial plan that projects income and expenses and future sales or anything that is expected to happen in the future

New line cinema bought new software for their company using a loan. How will the balance sheet be affected?

These are firms who buy raw materials to process and convert them to finished products, which they sell.

This indicates the percentage of asstes funded by the owners

These show a summary of revenue and expense projections for the budget period.

These organizations focus on money as the main product of their business.

These are issued by the treasury/government. They mature within 1 year and are generally frre from default risks.

This is an inexpensive way for governments and financial institutions to raise funds.

What are the two ways to report the balance sheet?

These are issued by banks or mutual fund companies. They have no specific maturity date.

These are riskier than government securities and rely on financial soundness of the company.

This type of bank lend to multinational companies.

This form of business is easiest to form and easiest to terminate.

This type of money market instrument is issued by financially sound businesses to fund inventories and recievables.

How will an increase in expenses affect the income statement of an organization?

This is the market where indirect finance happens.

Which of these is a non-current asset?

This type of bank extend credit to the consumer market.

This projects cash inflow and cash outflow.

Also known as interest covered ratio.

This budget is also known as salary and wage budget.

These are firms involved in the production or reproduction of cetain species either for sale or for reproduction.

These are not banks and are not governed. They also extend credit or financing to companies.

This measures profitability at different stages of the income statement.

This demonstrates how much revenues are left over all the variable or operating costs have been paid.

These are businesses that build houses, buildings, schools, roads and other infrastructures.

This estimates the amount of revenues and expenses a company may incur over a future period.

This measures company's ability to meet its short term financial obligations.

This type of business obtains natural rrsources like oil, gold, copper, and cement.

Also known as working capital ratio.

Which type of firm uses finished goods inventory?

This is the difference between net sales and cost of goods sold

This type of bonds is issued by the local government and matures longer than treasury notes and bonds.

It deals with financing for business firms or for commercial use, the goal of which is to make a profit.

This forecast details where to put investments to get maximum return.

This budget projects all onfloes and outflows for the next year.

This type of bank extend credit to the retail and consumer markets.

This type of finance according to the user includes government spending and borrowing.

This budget estimates all capital asset aquisitions and summarizes all expenses and costs of major purchases.

This is the market where direct finance happens.

This budget indicate the products and services a firm expects to use in a budget period.