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Business finance

Total questions: 30

Worksheet time: 2hrs 30mins

Name
Class
Date
1.

Anything that directly affects the quantity and quality of your production or causes variation in expected yield. If you’ve been farming for even a little while, you are probably well-versed with production risk

a)

technical risk

b)

financial risk

c)

production and technical risk

d)

price and marketing risk

2.

Anything that leads to uncertainty about costs, prices and demand for your product

a)

financial risk

b)

production risk

c)

technical risk

d)

price risk

3.

Marketing risk derives from price risk, product quality, and market availability.

a)

financial risk

b)

production and technical risk

c)

marketing risk

d)

price risk

4.

Arises from the cost of debt capital, cash flow needs, and the ability to maintain and grow equity.

a)

marketing risk

b)

price risk

c)

financial risk

d)

production risk

5.

A risk which arises from environmental liability, regulations, and the business structure of your operation

a)

human risk

b)

marketing risk

c)

legal risk

d)

price risk

6.

All are forming expectations of risk except

a)

most likely

b)

always

c)

expert opinions

d)

future markets

7.

All are production risk tools except

a)

diversification

b)

insurance

c)

custom taxes

d)

input procurement

8.

Are the act of purchasing one security and selling another related security as a unit. Usually, they are done with options or futures contracts

a)

contract sales

b)

spreading trade

c)

hedging

d)

commodity options

9.

Is a derivative contract which gives the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell

a)

flexibility and robustness

b)

spreading sales

c)

contract sales

d)

commodity options

10.

Is a form of short or intermediate-term credit instrument that is repaid with money generated by the assets it is used to purchase.

a)

interest rates

b)

interest rate derivative

c)

self-liquidating loans

d)

liquid reserves

11.

Mr. Seon-ho borrowed P 300,000 at a simple interest of 12% for 3 years. Compute the simple interest of the loan

a)

180,000

b)

108,000

c)

18,000

d)

109,000

12.

Ms. Dan-ah borrowed P 240,000 at a simple interest of 9% for 6 months. Compute the simple interest and maturity value of the loan

a)

12,960 & 252,960

b)

10,800 & 250,800

c)

21,600 & 261,600

d)

16,200 & 256,200

13.

Ms. So-Hyun borrowed P 452,000 at a simple interest of 8% for 1 year and 6 months. Compute the simple interest and maturity value of the loan

a)

452,000 & 54,000

b)

560,240 & 56,024

c)

452,000 & 54,240

d)

506,240 & 54, 240

14.

What is the Term of Note of the Loan on October 23?

a)

21 days

b)

22 days

c)

23 days

d)

19 days

15.

What is the maturity date on the November 30 loan?

a)

Feb 24

b)

January 24

c)

February 23

d)

January 23

16.

What is the term of note of the loan on February 05 assuming it is during a leap year?

a)

110 days

b)

111 days

c)

112 days

d)

113 days

17.

What is the maturity date of the loan on August 28?

a)

Oct 28

b)

Oct 30

c)

Oct 29

d)

Oct 25

18.

What is the maturity of a P 550,000 loan, for 15 days at 12% using the exact interest and ordinary method?

a)

2,712.33 & 2,750

b)

2,712.36 & 2,750

c)

2,713 & 2,749

d)

2,715 & 2,743

19.

Fatima Joe borrowed P 145,000 on July 15 at 10%. If the loan was due on September 15, what was the amount of interest on Fatima's loan using the ordinary interest method?

a)

2,537.5

b)

2,497.22

c)

2,577.78

d)

2,416.67

20.

What are the amount of interest and the maturity value of a loan for P232,150, at 8 1/2% simple interest in 36 months?

a)

95,198.25 & 291, 348.25

b)

32,150 & 264,300

c)

59,198.25 & 291,348.25

d)

59,189.25 & 291,339.25

21.

A sum of P 323,000 is invested from June 21 to August 28 of the same year at 13% simple interest. Find the interest earned using the exact interest using actual time

a)

7,707.75

b)

7,822.79

c)

7,814.81

d)

7,812.91

22.

A sum of P 323,000 is invested from June 21 to August 28 of the same year at 13% simple interest. Find the interest earned using the ordinary interest using approximate time

a)

7,822.79

b)

7,707.75

c)

7,814.81

d)

7,825.21

23.

Mr. Joo-hyuk bought an equipment which cost P 421,000 and the salvage value of P 156,000. The estimated life of the equipment is 8 years. Find the annual depreciation using the SYOD on year 4.

a)

58,889

b)

51,527.78

c)

44,166.67

d)

36,895.56

24.

Ms. Rodrigo bought an machine which cost P 327,000 and the salvage value of P 102,000. The estimated life of the equipment is 6 years. Find the annual depreciation using the straight line method

a)

54,500

b)

28,125

c)

24,500

d)

37,500

25.

Mr. Joo-hyuk bought an equipment which cost P 421,000 and the salvage value of P 156,000. The estimated life of the equipment is 7 years. Find the annual depreciation using the 150% declining balance during the 3rd year

a)

90,220.30

b)

70,886.09

c)

43,759.72

d)

55,695.20

26.

Explain financial ratios in your own words

4 lines
27.

For you, what is the common risk and uncertainty usually encountered or prepared for in a business in Lanao del Sur

4 lines
28.

Why do you think cash budget preparation is important in finance?

4 lines
29.

Explain your own understanding of time value of money

4 lines
30.

Explain the importance of financial statements, elaborate in your own words

4 lines