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WorksheetsFinance Reviewer Made Fun
Total questions: 15
Worksheet time: 6mins
What is one of the functions of a finance manager related to financial risk management?
creating social media marketing campaigns
identifying potential business expansion opportunities
setting employee performance targets
conducting job interviews for new staff
assessing and mitigating financial risks
Juan Fishing Store is an outdoor fishing store that selling lures and other fishing gear to the public. Last year Juan had the best year in sales he has ever had since he opened the business 10 years ago. Last year Juan's net sales were P1,000,000 and his net income was P100,000. Compute for the Profit Margin Ratio.
.1:1 or 10%
.3:1 or 30%
.12:1 or 12%
.23:1 or 23%
.2:1 or 20%
This measures a company's ability to sustain operations indefinitely by comparing debt levels
with equity, assets, and earnings.
Liquidity Ratios
Profitability Ratios
Leverage Ratio
Efficiency Ratio
Market Values Ratio
The following are examples of quick assets, EXCEPT:
Accounts Receivable
Cash Equivalent
Marketable Securities
Equipment
None of the above
Which of the following entity can engage in selling stocks?
your neighbor who has a sari-sari store
government agency
church
PHINMA-COC
Quek-quek food carts
Which of the following best describes Financial Management?
the process of organizing employees within a company
the study of market trends and consumer behavior
the practice of maintaining financial records for tax purposes
the management of a company's financial resources to achieve its financial goals
the process of designing and marketing new products
Which of the following terms refers to an institution that facilitates the flow of funds between
savers and borrowers in the financial market?
Investment Bank
Hedge Fund
Stock Exchange
Commercial Bank
Credit Union
Charlie's Construction Company is a growing construction business that has a few contracts to build storefronts in downtown Cagayan de Oro City. Charlie's balance sheet shows beginning assets of P1,000,000 and an ending balance of P2,000,000 of assets. During the current year, Charlie's company had net income of P2,000,000. Compute Charlie's Return on Assets Ratio.
1.13:1 or 113%
1.43:1 or 143%
1.23:1 or 123%
1.33:1 or 133%
2.33:1 or 233%
A financial, liquidity ratio that compares a company's total debt to total equity.
Profit Margin Ratio
Leverage Ratio
Debt-to-equity Ratio
Interest Coverage Ratio
Debt Ratio
ABC Group of Companies sold 15% of its shares to Mr. Kim. What is the primary purpose of selling shares?
to enjoy freedom
to incur obligation
for raising of funds
to gather more owners for sharing of losses
to distribute dividends
Which of the following is an example of financial management decision?
choosing the office location
planning the annual company picnic
evaluating investment opportunities
hiring new employees
deciding the company's marketing strategy
Which of the following best describes the role of financial institutions in the financial system?
to manage the country's monetary policy
to provide insurance against financial risks
to regulate government spending
to facilitate the flow of funds between savers and borrowers
to generate profits for shareholders
The total liability is P2,825,000 while the total assets is P4,900,000. What is the debt ratio?
.8765:1 or 87.65%
.7765:1 or 77.65%
.4765:1 or 47.65%
.6765:1 or 67.65%
.5765:1 or 57.65%
This ratio measures the proportion of total assets finance by total liabilities or money provided by creditors (not by business owners).
Profit Margin Ratio
Leverage Ratio
Debt-to-equity Ratio
Interest Coverage Ratio
Debt Ratio
Assume Pedro’s General Merchandise spent P100, 000 on inventory for the year. The store was able to sell this inventory for P500,000. Unfortunately, P50, 000 of the sales were returned by customers and refunded. Calculate the store’s Gross Margin Ratio.
48: 1 or 48%
.58: 1 or 58%
.68: 1 or 68%
.78: 1 or 78%
.88: 1 or 88%
