Sources and Uses of Funds Quiz

What are the two main categories of funds based on their maturity?

• Short-term and Long-term

• Fixed and Variable

• Equity and Debt

• Operating and Investing

Which of the following is NOT a source of short-term funds?

• Trade Credit

• Long-term Loans

• Credit Lines

• Factoring

What is the primary use of long-term funds?

• Covering payroll expenses

• Business expansion and capital investment

• Managing cash flow gaps

• Purchasing raw materials

What are some requirements to obtain funds?

• Good credit score

• Business registration and financial documents

• Collateral

• All of the above

What are the obligations to creditors?

• Timely repayment of principal and interest

• Compliance with loan covenants

• Transparent financial reporting

• All of the above

Which financial report shows a company's financial position?

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Loan Report

What are some examples of government agencies that require financial disclosures?

• BIR (Bureau of Internal Revenue)

• SEC (Securities and Exchange Commission)

• Both (a) and (b)

• None of the above

Which of the following is a use of short-term funds?

• Research and development

• Buying land and buildings

• Paying short-term obligations

• Reducing long-term liabilities

What is the main purpose of a business plan when seeking funds?

• To demonstrate the company's ability to repay the loan

• To outline the company's financial history

• To provide a detailed roadmap for the company's future

• To showcase the company's assets

What is the key advantage of factoring?

• It helps companies acquire long-term debt

• It allows companies to access immediate cash from receivables

• It reduces the need for inventory financing

• It eliminates the need for short-term loans