MAPUA INSTITUTE OF TECHNOLOGY

MID TERM EXAM IN FINANCIAL MANAGEMENT

SET A
NAME: SCORE:
DATE DATE:

TEST I. MATCHING TYPE. Write the letter of the correct answer on the space provided. No erasures
1 ____ expenses vary each period in direct proportion to production volume while
2 ___ expenses don't vary with production volume
3 Net sales minus cost of goods sold equals ____
4 "As of December 31,2011" is an example of the date for what financial statement?
5 ___ is the Income we have before we pay income taxes to the government.
6 ____ is the profit after deducting. income taxes
7 ___ is any item that is owned and/or by the business or individual.
8 ___ is a measure of how fast an asset can be converted to cash.
9 Assets are classified as _______ and
10 ______ while
11 liabilities are classified into _____ and
12 ______.
13 IN the accounting equation, total Assets must be equal to total __________.
14 ___Assets whose expected life is more than one year and are usually depreciated.
15 The Owner's equity section of a sole proprietorship is shown in the formula:
ASSETS = LIABILITIES + _____ while
16 for a partnership, ASSETS = LIABILITIES + _____.
17 For a corporation, ASSETS = LIABILITIES + _____.
18 Purchase account in a merchandising business is used for purchases of ______
19 while Purchase account in a manufacturing business is used for purchases of___
20 Total cost of goods manufactured + finished goods inventory beginning =____
A ASSET
B BALANCE SHEET
C CURRENT ASSETS
D CURRENT LIABILITIES
E FINISHED GOODS
F FIXED COSTS AND EXPENSES
G FIXED ASSETS OR NON-CURRENT ASSETS
H GROSS PROFIT
I LIABILITIES + TOTAL SHAREHOLDERS EQUITY
J LIQUIDITY
K LONG-TERM LIABILITIES
L NET INCOME
M NET OPERATING INCOME
N NON-CURRENT ASSETS
O OWNERS EQUITY
P PARTNERS EQUITY
Q RAW MATERIALS
R SEMI-VARIABLE
S SHAREHOLDERS EQUITY
T SOLVENCY
U TOTAL GOODS AVAILABLE FOR SALE
V TOTAL LIABILITIES
W VARIABLE COSTS AND EXPENSES

TEST II SHORT PROBLEMS 1 point for solution, 1 point for correct answer
1 If a company had sales of P3,500,000 in 2005 and sales of P4,200,000 in 2010, by what
percentage did sales change during this time period? If the company had a goal of
increasing sales by 25% over a five year period,did it meet its objective?
answer solution/explanation
 2 If the company in question 1 had set a goal of increasing sales by 35 percent during the
next 5 years, what should be the sales goal for 2015?
answer solution/explanation

3 If a company computes its current ratio to be 2.0, what does this mean in terms of the
company's current assets and current liabilities?
answer solution/explanation

4 If a company has a beginning inventory of P40,000 and ending inventory of P80,000,

compute its average inventory. If the COGS is P200,000 compute its inventory
turnover and determine how many days the everage item is in stock or unsold.
answer: ave. Invtsolution/explanation

answer: invty solution/explanation

turnover

answer: age of solution/explanation

invty

5 A company computes its accounts receivable turnover to be 20.Based on this information,

find the average collection period. If the company has a credit collection period of 30 days,
explain the relationship bet. the credit collection period and the average collection period
answer:average solution/explanation
coll. Period

answer on relationship bet. Credit coll. Period and ave. Coll period.

6 If a company has P280,000 on total liabilitie and P350,000 in total assets, what percentage
of total assets is financed with the use of other people's money?
answer solution/explanation

TEST III ENUMERATION

A TYPES OF BUSINESS RATIOS
1 4
2 5
3
B KINDS OF LIQUIDITY RATIOS
1
2
3
C KINDS OF FINANCIAL STATEMENTS
1
2
3
TEST IV IDENTIFICATION
1 Acceptable acid test ratio answer:____________________
2 Acceptable acid test ratio answer:____________________
3 Acceptable current ratio answer:____________________
4 COST OF SALES / AVERAGE INVENTORY answer:____________________
5 CURRENT ASSETS - CURRENT LAIBILITIES answer:____________________
6 CURRENT ASSETS / CURRENT LIABILITIES answer:____________________
7 For perishable food items in japanese restaurants, the inventory turnover should be ______ times
8 For perishable food items in japanese restaurants, the inventory turnov answer:___________
9 NET CREDIT SALES / AVERAGE RECEIVABLES answer:____________________
10 QUICK ASSETS / CURRENT LIABILITIES answer:____________________
7 To be acceptable, age of receivables should be equal to or less than ___answer:________________
8 To be acceptable, age of receivables should be equal to or less than ___answer:___________
9 To be Acceptable, working capital should be equal to or greater than___answer:___________
10 To be Acceptable, working capital should be equal to or greater than___answer:___________
NAME: SCORE:
DATE DATE:

TEST I. MATCHING TYPE. Write the letter of the correct answer on the space provided. No erasures
1 ____ expenses vary each period in direct proportion to production volume while
2 ___ expenses don't vary with production volume
3 Net sales minus cost of goods sold equals ____
4 "As of December 31,2016" is an example of the date for what financial statement?
5 ___ is the Income we have before we pay income taxes to the government.
6 ____ is the profit after deducting. income taxes
7 ___ is any item that is owned and/or by the business or individual.
8 ___ is a measure of how fast an asset can be converted to cash.
9 Assets are classified as _______ and
10 ______ while
11 liabilities are classified into _____ and
12 ______.
13 IN the accounting equation, total Assets must be equal to total __________.
14 ___Assets whose expected life is more than one year and are usually depreciated.
15 The Owner's equity section of a sole proprietorship is shown in the formula:
ASSETS = LIABILITIES + _____ while
16 for a partnership, ASSETS = LIABILITIES + _____.
17 For a corporation, ASSETS = LIABILITIES + _____.
18 Purchase account in a merchandising business is used for purchases of ______
19 while Purchase account in a manufacturing business is used for purchases of___
20 Total cost of goods manufactured + finished goods inventory beginning =____
A VARIABLE
B TOTAL LIABILITIES
C TOTAL GOODS AVAILABLE FOR SALE
D SOLVENCY
E SHAREHOLDERS EQUITY
F SEMI-VARIABLE
G RAW MATERIALS
H PARTNERS EQUITY
I OWNERS EQUITY
J NON-CURRENT ASSETS
K NET OPERATING INCOME
L NET INCOME
M LONG-TERM LIABILITIES
N LIQUIDITY
O LIABILITIES + TOTAL SHAREHOLDERS EQUITY
P GROSS PROFIT
Q FIXED ASSETS OR NON-CURRENT ASSETS
R FIXED
S FINISHED GOODS
T CURRENT LIABILITIES
U CURRENT ASSETS
V BALANCE SHEET 0r STATEMENT OF FINANCIAL POSITION
W ASSET

TEST II SHORT PROBLEMS 1 point for solution, 1 point for correct answer
1 If a company had sales of P2,500,000 in 2005 and sales of P3,200,000 in 2010, by what
percentage did sales change during this time period? If the company had a goal of
increasing sales by 25% over a five year period,did it meet its objective?
answer solution/explanation
 2 If the company in question 1 had set a goal of increasing sales by 30 percent during the
next 5 years, what should be the sales goal for 2015?
answer solution/explanation

3 If a company computes its current ratio to be 4.0, what does this mean in terms of the
company's current assets and current liabilities?
answer solution/explanation

4 If a company has a beginning inventory of P30,000 and ending inventory of P60,000,

compute its average inventory. If the COGS is P150,000 compute its inventory
turnover and determine how many days the everage item is in stock or unsold.
answer: ave. Invty solution/explanation

answer: invty solution/explanation

turnover

answer: age of solution/explanation

invty

5 A company computes its accounts receivable turnover to be 20.Based on this information,

find the average collection period. If the company has a credit collection period of 45 days,
explain the relationship bet. the credit collection period and the average collection period
answer:average solution/explanation
coll. Period

answer on relationship bet. Credit coll. Period and ave. Coll period.

6 If a company has P180,000 on total liabilitie and P250,000 in total assets, what percentage
of total assets is financed with the use of other people's money?
answer solution/explanation

7 The Mandy corporation has an income statement that indicates that operating income is
P2,500,000 and net profit is P1,500,000. The corporation currently has 2 million shares
of common stocke (or ordinary shares) outstanding and 1 million shares of preferred stoc
(or preferrence shares), which pays dividend of P1 per share.
What is the corporations approximate earnings per share?
answer solution/explanation

TEST IV ENUMERATION
A TYPES OF BUSINESS RATIOS
1 4
2 5
3
 B KINDS OF LIQUIDITY RATIOS
1
2
3
C 3 METHODS OF ANALYZING THE FINANCIAL STATEMENTS
1
2
3
TEST V IDENTIFICATION
1 CURRENT ASSETS / CURRENT LIABILITIES answer:____________________
2 QUICK ASSETS / CURRENT LIABILITIES answer:____________________
3 CURRENT ASSETS - CURRENT LAIBILITIES answer:____________________
4 COST OF SALES / AVERAGE INVENTORY answer:____________________
5 NET CREDIT SALES / AVERAGE RECEIVABLES answer:____________________
6 Acceptable current ratio answer:____________________
7 Acceptable acid test ratio answer:____________________
8 To be Acceptable, working capital should be equal to or greater than___ answer:___________
9 To be acceptable, age of receivables should be equal to or less than ____ answer:___________
10 For perishable food items in japanese restaurants, the inventory turnover should be ______ times
7 Acceptable acid test ratio answer:____________________
8 To be Acceptable, working capital should be equal to or greater than___ answer:___________
9 To be acceptable, age of receivables should be equal to or less than ____ answer:___________
10 For perishable food items in japanese restaurants, the inventory turnover should be ______ times