Scribd
Upload
85 views4 pages

Business Finance

1) This document contains a 1st quarter exam for a Business Finance class consisting of multiple choice, true/false, matching, short answer, and computational questions. 2) The multiple choice and true/false sections cover topics like corporate governance, financial statements, ratios, and accounting concepts. 3) The financial statements provided are for a company called Pancake House for 2013 and 2012, and include income statements, balance sheets, and ratios are to be computed from the financial data.

Uploaded by

Jinkee F. Sta Maria
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
85 views4 pages

Business Finance

1) This document contains a 1st quarter exam for a Business Finance class consisting of multiple choice, true/false, matching, short answer, and computational questions. 2) The multiple choice and true/false sections cover topics like corporate governance, financial statements, ratios, and accounting concepts. 3) The financial statements provided are for a company called Pancake House for 2013 and 2012, and include income statements, balance sheets, and ratios are to be computed from the financial data.

Uploaded by

Jinkee F. Sta Maria
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
You are on page 1/ 4

DIVINE CHILD JESUS SCHOOL

1st Quarter Exam in Business Finance 12


Name: ________________________________________________________ Date: ___________________
I. Multiple Choice. Encircle the letter of the correct answer.
1. It is the highest policy-making body in a corporation.
a. President
b. Board of Directors
c. Stockholders
d. Vice President
2. It includes making decisions as how to finance long-term investments and working
capital which deals with the day-to-day operations of the company.
a. Financing Decisions
b. Investing Decisions
c. Operating Decisions
d. Dividend Decisions
3. It deals with the daily operations of the company.
a. Financing Decisions
b. Investing Decisions
c. Operating Decisions
d. Dividend Decisions
4. It refers to the ability of company to pay maturing obligations.
a. Capital Structure
b. Liquidity
c. Balance Sheet
d. Income Statement
5. It provides information regarding the amount of assets financed by debt or liabilities
and equity.
a. Capital Structure
b. Liquidity
c. Balance Sheet
d. Income Statement
6. He or she is responsible for determining the appropriate capital structure of the
company.
a. VP for Sales and Marketing
b. VP for Production
c. VP for Administration
d. VP for Finance
7. It measures the amount of income earned in relation to stockholder’s equity.
a. ROE
b. ROA
c. Gross profit margin
d. Operating profit margin
8. It measures the ability of a company to generate income out of its resources.
a. ROE
b. ROA
c. Gross profit margin
d. Operating profit margin
9. It measures the amount of income generated from the core business of the company.
a. ROE
b. ROA
c. Gross profit margin
d. Operating profit margin
10. It measures the ability of a company to cover its cost of goods sold from its
sales.
a. ROE
b. ROA
c. Gross profit margin
d. Operating profit margin
II. True or False. Write T if the statement is true and F if the statement is false.
_______ 11. The members of the board who are called directors are elected by the
stockholders.
_______ 12. The president can manage the company on his own.
_______ 13. The president represents the company in professional, social, and civic
activities.
_______ 14. The capital structure of a company can depend largely on the nature of its
business.
_______ 15. Financial statement analysis is used for investment and credit decisions.
_______ 16. Accruals include unpaid salaries for the accounting period.
_______ 17. Depreciation expenses are recognized at the end of each accounting period.
_______ 18. Statement of Financial Position is also known as Income Statement.
_______ 19. The VP for Finance has three functions.
_______ 20. Ensuring productions meets customer demands is the responsibility of VP
for Production.

II. Matching Type. Match column A to column B. Write you answer before the number.
A B
21. ROE a. Balance Sheet
22. ROA b. Net Income ÷ Sales
23. Gross Profit Margin c. Net Income ÷ Stockholders Equity
24. Operating Profit Margin d. Gross Profit ÷ Sales
25. Net Profit Margin e. Operating Income ÷ Total Assets
26. Statement of Financial Position f. Income Statement
27. Statement of Profit or Loss g. Operating Income ÷ Sales

IV. Give the meaning of the following acronyms.


28. ROE
29. ROA
30. SFP

IV. Sequencing. Arrange the following process in preparing financial statements by


numbering them from 1 to 10. (31-40)
_____ Recording in the journals.
_____ Posting to ledger accounts
_____ Preparing the unadjusted trial balance
_____ Analyzing business transactions
_____ Making the adjusting entries
_____ Preparing the financial statements
_____ Preparing the adjusted trial balance
_____ Post-closing trial balance
_____ Making the closing entries
_____ Steps in Preparing Financial Statements

V. Enumeration. Enumerate the following.


41-44. Basic Financial Statements

45-49. Profitability Ratios


IV. Completion. Complete the Organizational Chart below. (50-54)
Board of
Directors

V. Computation. Given the data on the next page, compute the following. (55-70)
55-56. ROE of 2013 63-64. Gross Profit Margin of 2013

57-58. ROE of 2012 65-66. Gross Profit Margin of 2012

59-60. ROA of 2013 67-68. Operating Profit Margin of 2013

61-62. ROA of 2012 69-70. Net Profit Margin of 2013


Pancake House and Subsidiaries
Consolidated Statements of Profit or Loss
For the Years Ending December 31, 2013 and 2012
2013 2012
Sales 3 751 551 021 3 430 700 496
Cost of Sales 3 067 218 589 2 799 747 640
Gross Profit 684 332 432 630 952 856
Operating Expenses 568 148 309 462 184 796
Operating Income 116 184 123 168 768 060
Other Revenues and Expenses,
88 928 261 103 032 748
Net
Income before Interest and Taxes 205 112 384 271 800 808
Interest Expense 62 579 720 61 331 464
Income before Taxes 142 532 664 210 469 344
Income Tax Expense 63 259 148 60 851 855
Net Income 79 273 516 149 617 489

Pancake House and Subsidiaries


Consolidated Statements of Financial Position
December 31, 2013 and 2012
2013 2012
Assets
Current Assets
Cash 341 682 074 372 549 691
Trade and Other Accounts Receivable 441 848 273 372 543 507
Trade Inventories 96 882 681 93 001 177
Other Current Assets 70 708 406 117 286 169
Total Current Assets 951 121 434 955 380 544
Noncurrent Assets
Property and Equipment 470 409 909 423 404 905
Intangible Assets 1 207 986 875 1 233 706 208
Other Noncurrent Assets 340 405 976 276 990 380
Total Noncurrent Assets 2 018 802 760 1 934 101 493
Total Assets 2 969 924 194 2 889 482 037

Liabilities and Stockholder’s Equity


Current Liabilities
Trade and Other Accounts Payable 695 401 918 610 375 051
Loans Payable 304 500 000 306 000 000
Current Portion of Long-term Debt 793 734 791 3 188 053
Income Taxes Payable 28 162 241 26 442 351
Total Current Liabilities 1 821 798 950 946 005 455
Noncurrent Liabilities
Long-term Debt, Net of Current 1 500 247 801 040 752
Portion
Other Noncurrent Liabilities 121 194 817 117 111 220
Total Noncurrent Liabilities 122 695 064 918 151 972
Total Liabilities 1 944 494 014 1 864 157 427
Total Equity
Capital Stock 237 795 455 237 795 455
Additional Paid in Capital 176 806 287 176 806 287
Retained Earnings 401 680 302 365 138 910
Others 209 148 136 245 583 958
Stockholders’ Equity 1 025 430 180 1 025 324 610
Total Liabilities and Equity 2 969 924 194 2 889 482 037

You might also like