Treasury Management - Prelim

General Instruction: This exam is worth 100 points in total. Send your answer sheet on or before 11:00 AM of October 15, 2022.

* Required

1. Name *

2. In an effort to lower portfolio risk, it is a strategy that incorporates a wide range of investments.
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Securitization

Diversification

Privatization

3. They make
sure that there is working capital available to continue operations and lower
financial risks while a company raises, earns, or utilizes cash. *

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General Managers

Accountants

Treasurers

4. It involves creating a business plan and monitoring how well each department is following it.
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Financial planning

Financial management

Treasury management

5. Divide a company's net income by its average total assets to calculate this financial ratio, which shows how lucrative a business is in comparison to its total assets.
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Return on Investment

Return on Assets

Return of Capital

6. The gauge of a corporation's profitability and how efficiently it generates those profits. net income divided by its shareholders' equity
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Return on Investment

Return of Capital

Return on Assets

7. Making sure that our stockholders profit from the company is important. It is one of the roles of what department?
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Treasury department

Finance department

Executive department

8. It is a technique for determining whether a capital investment will be profitable over its entire life.
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Capital Budgeting

Capital Structure Decisions

Cost of Capital

9. This relates to the long-term funding sources, such as debt and equity capital.
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Cost of Capital

Capital Structure Decisions

Financial Services
10. It is one of the sources of money for a firm. *

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Employees

Public

Debt

11. With this activity, the

over-capitalization or under-capitalization is avoided. *

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Project Planning

Cost of Capital

Capital Structure Decisions

12. It is an essential accounting and economic technique for calculating investment opportunity costs and maximizing potential investments.
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Dividend Policy

Cost of Capital

Capital Structure Decisions

13. This refers to services provided by the financial institutions in a financial system.
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Financial Services

Withdrawal and Deposit

Savings

14. Without these, individuals with money to save might have trouble finding those who need to borrow, and vice versa.
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Tellers

Banks

Financial Services

15. It is concerned with

company's everyday cash flow.
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Financial Management

Treasury Management

Risk Management

16. In this activity, each main course of action will be described, the time and resources needed will be estimated, and a structure for management review and control will be provided. *

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Research and Development

Project Planning

Strategic Planning

17. As the series of tasks moves through its many phases, it is essential in helping stakeholders, sponsors, teams, and the project manager.
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Project Planning

Monitoring

Maintenance

18. It establishes how much of the company's earnings will be distributed to stockholders and how much will be kept on hand to fund future expansion.
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Income Statement

Dividend Policy

Board of Directors
19. Which of the following is not an example of a current asset? *

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Inventories

Trademark

Cash

20. Which of the following is not an example of a current liability?

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Accounts Payable

Bonds Payable

Rent Payable

21. According to this, the business annually distributes dividends to its owners.
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Regular Dividend Policy

Stable Dividend Policy

Irregular Dividend Policy

22. According to this, the board of directors can determine what to do with the profits and the company is free to avoid paying its shareholders.
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Irregular Dividend Policy

No Dividend Policy

Board Resolutions

23. This kind of working capital is constantly present in the business to ensure its smooth functioning.
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Initial Working Capital

Regular Working Capital

Reserve Margin Working Capital

24. It refers to the entire process of calculating risk and return for certain securities.
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Securitization

Privatization

Security Analysis

25. It entails creating and managing a portfolio of investments that will satisfy an investor's long-term financial objectives and risk tolerance.
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Securitization

Portfolio Management

Risk Management

26. It refers to the skill of choosing the finest investment plans for a particular individual that ensure the highest returns with the fewest risks.
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Risk Management

Portfolio Management

Treasury Management

27. It is a financial asset, and as such, its value is based on the values of more fundamental underlying factors.
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Collateral

Mortgage

Derivative
28. It 
is
the largest financial market in the world.  *

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Market Exchange

USA

Foreign Exchange Market

29. It is the process of reducing a company's vulnerability to changes in foreign exchange rates.
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Financial Management

Risk Management

Foreign Exchange Management

30. It has to do with how a company's cash are to be put in various assets to generate profits.
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Financing Activities

Investment Activities

Dividend Activities

31. It had to do with paying investors who had provided cash to the company income in return.
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Financing Activities

Investment Activities

Dividend Activities

32. The maximization of return and __________________ are the key goals that a business organization seeks.
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Minimization of expenditures

Minimization of cost of operations

Minimization of salaries and wages

33. Profit earning is the main aim of every economic activity.

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True

False

Somewhat true

34. It is an investment that generates income plus any increase or decrease in market value; it is typically stated as a percentage of the investment's initial market value.
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Yield

Return

Turnover

35. Compute for the gain or loss on investment:

*

Initial Investment: Php. 150,000.00

Value of Investment after Pull-out: Php. 175,000.00

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Php. 25,000.00

Php. 15,000.00

Php. 50,000.00

36. Compute for the gain or loss on investment:

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Initial Investment: Php. 140,000.00

Value of Investment after Pull-out: Php. 125,000.00

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( Php. 25,000.00 )

( Php. 15,000.00 )

Php. 15,000.00
37. Compute for the Net Profit Margin:
*

Net Profit Before Tax: Php. 450,000.00

Applicable Tax Rate: 12%
Sales, beginning: Php. 65,000.00
Sales, ending: Php. 485,000.00

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1.24%

93%

96%

38. Compute for the Net Profit Margin:

*

Net Profit Before Tax: Php. 350,000.00

Applicable Tax Rate: 11%
Sales, beginning: Php. 85,000.00
Sales, ending: Php. 885,000.00

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35%

1.35%

39%

39. It means that the anticipated party pays a fee to shift all or a portion of the losses brought on by risk exposure to a different party.
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Risk Avoidance

Risk Transfer

Risk Retention

40. Deciding on the combination of methods to be used for each risk is a part of what step in the risk management process?
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Risk Avoidance

Planning

Evaluation

41. In order to gather insightful information that can assist reveal significant risks or developments surrounding existing hazards, facilitators interview employees from across the firm. This is an *
example of

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Observation

Interview

Brainstorming

42. It is a technique for analyzing and communicating risk scenarios, and it pinpointed the origins and impacts of the danger.
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Fault Tree Analysis

Scenario Analysis

Bow-tie method

43. It is served to stakeholders other than the management and employees.  *

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Internal Risk Reporting

External Risk Reporting

Inter-company Risk Reporting

44. It is the collection of techniques used by businesses to assess prospective losses and take steps to lessen or eliminate those dangers.
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Risk Plan

Risk Strategy

Risk Control

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