SWOT Analysis- process of strategic planning to analyze business SWOT Analysis- process of strategic planning to analyze business SWOT

usiness SWOT Analysis- process of strategic planning to analyze business

competitive advantage in the industry competitive advantage in the industry competitive advantage in the industry
Master Budget- summary of consolidated budget among different Master Budget- summary of consolidated budget among different Master Budget- summary of consolidated budget among different
units Budget Manuals- guide for budget preparation of a company units Budget Manuals- guide for budget preparation of a company units Budget Manuals- guide for budget preparation of a company
Operating Budget- composed of a detailed presentation of revenues, Operating Budget- composed of a detailed presentation of revenues, Operating Budget- composed of a detailed presentation of revenues,
expenses and net profit expenses and net profit expenses and net profit
Executive Opinion Method- method of estimating sales that Executive Opinion Method- method of estimating sales that Executive Opinion Method- method of estimating sales that
considers the idea of the top management considers the idea of the top management considers the idea of the top management
Sales Trend Analysis- method in which estimating sales are done Sales Trend Analysis- method in which estimating sales are done Sales Trend Analysis- method in which estimating sales are done
through an analysis of the performance of a particular product through an analysis of the performance of a particular product through an analysis of the performance of a particular product
during its cycle during its cycle during its cycle
Cash Budget- budget of plan of cash receipts and disbursements Cash Budget- budget of plan of cash receipts and disbursements Cash Budget- budget of plan of cash receipts and disbursements
Budget- yardstick to which the results of the daily operations of the Budget- yardstick to which the results of the daily operations of the Budget- yardstick to which the results of the daily operations of the
company are matched, coordinated, evaluated, and controlled company are matched, coordinated, evaluated, and controlled company are matched, coordinated, evaluated, and controlled
Strategy- long term course solving large-scale business problems Strategy- long term course solving large-scale business problems Strategy- long term course solving large-scale business problems
Tactics- pays more attention to each transaction such as forecasting Tactics- pays more attention to each transaction such as forecasting Tactics- pays more attention to each transaction such as forecasting
consequences and assessing risks consequences and assessing risks consequences and assessing risks
Behavioral Finance- study of various physiological factor's that will Behavioral Finance- study of various physiological factor's that will Behavioral Finance- study of various physiological factor's that will
affect the financial market. affect the financial market. affect the financial market.
Mental Accounting- profencity of people to allocate their financial Mental Accounting- profencity of people to allocate their financial Mental Accounting- profencity of people to allocate their financial
resources base on more specific needs. resources base on more specific needs. resources base on more specific needs.
Herd Behavior- follows the move of investors or behavior in the Herd Behavior- follows the move of investors or behavior in the Herd Behavior- follows the move of investors or behavior in the
market. Tend to mimic their behavior in the stock market. market. Tend to mimic their behavior in the stock market. market. Tend to mimic their behavior in the stock market.
Emotional Gap- investment decision making lies in the emotion. Emotional Gap- investment decision making lies in the emotion. Emotional Gap- investment decision making lies in the emotion.
Anchoring- attaching their spending level to base on their certain Anchoring- attaching their spending level to base on their certain Anchoring- attaching their spending level to base on their certain
reference. reference. reference.
Self-attribution- over confident on a particular investment Self-attribution- over confident on a particular investment Self-attribution- over confident on a particular investment
Confirmation Bias- If the investor has already had her belief on the Confirmation Bias- If the investor has already had her belief on the Confirmation Bias- If the investor has already had her belief on the
investment she will still invest on it despite what others will say. investment she will still invest on it despite what others will say. investment she will still invest on it despite what others will say.
Experiential Bias- have actual experienced, and believes that it will Experiential Bias- have actual experienced, and believes that it will Experiential Bias- have actual experienced, and believes that it will
occur again. occur again. occur again.
Loss aversion- more concern in the losses rather than market gains. Loss aversion- more concern in the losses rather than market gains. Loss aversion- more concern in the losses rather than market gains.
Familiarity bias- investors tend to invest in what they know. Familiarity bias- investors tend to invest in what they know. Familiarity bias- investors tend to invest in what they know.
Market crashes- can be bull price (pataas) or bear market price Market crashes- can be bull price (pataas) or bear market price Market crashes- can be bull price (pataas) or bear market price
(pababa) (pababa) (pababa)
Stocks - price (down) = buy; (up) price = sell Stocks - price (down) = buy; (up) price = sell Stocks - price (down) = buy; (up) price = sell
Efficient market hypothesis- all informations are available and open Efficient market hypothesis- all informations are available and open Efficient market hypothesis- all informations are available and open
to investors (less tax) to investors (less tax) to investors (less tax)
Insider Trading- illegal use of information that is not yet made public Insider Trading- illegal use of information that is not yet made public Insider Trading- illegal use of information that is not yet made public

Petty Cash Fund- cater the small expenditures of the company. Petty Cash Fund- cater the small expenditures of the company. Petty Cash Fund- cater the small expenditures of the company.
Change Fund- maintain loose change to address the concern for Change Fund- maintain loose change to address the concern for Change Fund- maintain loose change to address the concern for
small bills and coins small bills and coins small bills and coins
Dividend Fund- used to pay for the dividend which the board of Dividend Fund- used to pay for the dividend which the board of Dividend Fund- used to pay for the dividend which the board of
directors have declared and payable a time certain in the future. directors have declared and payable a time certain in the future. directors have declared and payable a time certain in the future.
Sinking fund- money set aside/saved to pay off a debt/bond. Sinking fund- money set aside/saved to pay off a debt/bond. Sinking fund- money set aside/saved to pay off a debt/bond.
Preference redemption fund- returning the preference share capital Preference redemption fund- returning the preference share capital Preference redemption fund- returning the preference share capital
to the preference shareholders to the preference shareholders to the preference shareholders
Contingent fund- to meet some urgent or unforeseen expenditure of Contingent fund- to meet some urgent or unforeseen expenditure of Contingent fund- to meet some urgent or unforeseen expenditure of
the organization the organization the organization
TRUE 1. The interest of a time deposit placement with the bank can TRUE 1. The interest of a time deposit placement with the bank can TRUE 1. The interest of a time deposit placement with the bank can
be received at maturity date. be received at maturity date. be received at maturity date.
TRUE 2. Good internal control dictates that no one should have a TRUE 2. Good internal control dictates that no one should have a TRUE 2. Good internal control dictates that no one should have a
monopoly of the transactions related to cash. monopoly of the transactions related to cash. monopoly of the transactions related to cash.
FALSE 3. It is a good practice for collectors to issue an official receipt FALSE 3. It is a good practice for collectors to issue an official receipt FALSE 3. It is a good practice for collectors to issue an official receipt
to the customer who pays his/her account. to the customer who pays his/her account. to the customer who pays his/her account.
TRUE 4. Company policies related to cash are guidelines by which TRUE 4. Company policies related to cash are guidelines by which TRUE 4. Company policies related to cash are guidelines by which
the staff should be guided and protected. the staff should be guided and protected. the staff should be guided and protected.
TRUE 5. Deposits in banks with financial difficulty should be TRUE 5. Deposits in banks with financial difficulty should be TRUE 5. Deposits in banks with financial difficulty should be
presented in the balance sheet at net realizable value. presented in the balance sheet at net realizable value. presented in the balance sheet at net realizable value.
TRUE 6. Short-term investments acquired maturing within three TRUE 6. Short-term investments acquired maturing within three TRUE 6. Short-term investments acquired maturing within three
months are considered as cash equivalent. months are considered as cash equivalent. months are considered as cash equivalent.
TRUE 7. Inherent risks are those risks that are already built-in in the TRUE 7. Inherent risks are those risks that are already built-in in the TRUE 7. Inherent risks are those risks that are already built-in in the
organization and therefore cannot be eliminated but minimized. organization and therefore cannot be eliminated but minimized. organization and therefore cannot be eliminated but minimized.
TRUE 8. Foreign currency deposit with the bank should be translated TRUE 8. Foreign currency deposit with the bank should be translated TRUE 8. Foreign currency deposit with the bank should be translated
into current exchange rate at the end of accounting period. into current exchange rate at the end of accounting period. into current exchange rate at the end of accounting period.
TRUE 9. Provisional receipts are used when the customer pays the TRUE 9. Provisional receipts are used when the customer pays the TRUE 9. Provisional receipts are used when the customer pays the
company a check that will be subject to a 3-day clearing period. company a check that will be subject to a 3-day clearing period. company a check that will be subject to a 3-day clearing period.
TRUE 10. Depositing the cash collection daily will minimize the risk of TRUE 10. Depositing the cash collection daily will minimize the risk of TRUE 10. Depositing the cash collection daily will minimize the risk of
misusing the cash. misusing the cash. misusing the cash.
FALSE 1) Financial Accounting is the process of planning, directing, FALSE 1) Financial Accounting is the process of planning, directing, FALSE 1) Financial Accounting is the process of planning, directing,
organizing, controlling and monitoring the monetary resources organizing, controlling and monitoring the monetary resources organizing, controlling and monitoring the monetary resources
FALSE 2) The ultimate goal of the corporation is maximizing its FALSE 2) The ultimate goal of the corporation is maximizing its FALSE 2) The ultimate goal of the corporation is maximizing its
market value, same as shareholder’s wealth maximization. market value, same as shareholder’s wealth maximization. market value, same as shareholder’s wealth maximization.
FALSE 3) Profit maximization does not consider the discount rate FALSE 3) Profit maximization does not consider the discount rate FALSE 3) Profit maximization does not consider the discount rate
which reflects the risks of capitalization and the time value of money which reflects the risks of capitalization and the time value of money which reflects the risks of capitalization and the time value of money
TRUE 4) Profit maximization and cost minimization are goals of any TRUE 4) Profit maximization and cost minimization are goals of any TRUE 4) Profit maximization and cost minimization are goals of any
business organization. business organization. business organization.

FALSE 5) Shareholder’s wealth maximization may be obtained FALSE 5) Shareholder’s wealth maximization may be obtained FALSE 5) Shareholder’s wealth maximization may be obtained
through increase in amounts of dividends declared through increase in amounts of dividends declared through increase in amounts of dividends declared
TRUE 6) The roles of financial managers are to decide on its TRUE 6) The roles of financial managers are to decide on its TRUE 6) The roles of financial managers are to decide on its
investing, financing and operating activities. investing, financing and operating activities. investing, financing and operating activities.
FALSE 7) The treasurer’s responsibility mainly focuses on the FALSE 7) The treasurer’s responsibility mainly focuses on the FALSE 7) The treasurer’s responsibility mainly focuses on the
accounting and budgeting processes. accounting and budgeting processes. accounting and budgeting processes.
FALSE 8) The controller’s responsibility is to raise adequate funds FALSE 8) The controller’s responsibility is to raise adequate funds FALSE 8) The controller’s responsibility is to raise adequate funds
and maintain control of such funds for the company. and maintain control of such funds for the company. and maintain control of such funds for the company.
FALSE 9) The CFO is also known as the Vice President of Finance FALSE 9) The CFO is also known as the Vice President of Finance FALSE 9) The CFO is also known as the Vice President of Finance
Department who supervises the treasurer not the controller. Department who supervises the treasurer not the controller. Department who supervises the treasurer not the controller.
FALSE 10) The Chief Financial Officer is also known as the Vice FALSE 10) The Chief Financial Officer is also known as the Vice FALSE 10) The Chief Financial Officer is also known as the Vice
President of Finance department who supervises the treasurer not President of Finance department who supervises the treasurer not President of Finance department who supervises the treasurer not
the controller. the controller. the controller.
TRUE 11) The board of directors is considered owners who are TRUE 11) The board of directors is considered owners who are TRUE 11) The board of directors is considered owners who are
responsible for the overall governance of the corporation. responsible for the overall governance of the corporation. responsible for the overall governance of the corporation.
TRUE 12) The sole proprietorship business is subject to lesser TRUE 12) The sole proprietorship business is subject to lesser TRUE 12) The sole proprietorship business is subject to lesser
regulations as compared to the corporation as a business. regulations as compared to the corporation as a business. regulations as compared to the corporation as a business.
FALSE 13) The amount of capital of the corporation is usually smaller FALSE 13) The amount of capital of the corporation is usually smaller FALSE 13) The amount of capital of the corporation is usually smaller
than that of the partnership as a business. than that of the partnership as a business. than that of the partnership as a business.
TRUE 14) Compensating managers with stock can reduce the agency TRUE 14) Compensating managers with stock can reduce the agency TRUE 14) Compensating managers with stock can reduce the agency
problem between stockholders and managers. problem between stockholders and managers. problem between stockholders and managers.
TRUE 15) There is a conflict between stockholders and bondholder TRUE 15) There is a conflict between stockholders and bondholder TRUE 15) There is a conflict between stockholders and bondholder
wherein the former wants the management to take risky wherein the former wants the management to take risky wherein the former wants the management to take risky
investments while the latter wants the less risk investments. investments while the latter wants the less risk investments. investments while the latter wants the less risk investments.
TRUE 16) Good reputation may be attained through ethical business TRUE 16) Good reputation may be attained through ethical business TRUE 16) Good reputation may be attained through ethical business
practices and is considered as the best advertisement. practices and is considered as the best advertisement. practices and is considered as the best advertisement.
TRUE 17) The firm should always consider their corporate social TRUE 17) The firm should always consider their corporate social TRUE 17) The firm should always consider their corporate social
responsibility in doing business. responsibility in doing business. responsibility in doing business.
TRUE 18) If there are conflict between profit maximization and TRUE 18) If there are conflict between profit maximization and TRUE 18) If there are conflict between profit maximization and
ethical consideration, the latter must prevail. ethical consideration, the latter must prevail. ethical consideration, the latter must prevail.
FALSE 19) If there are conflict between shareholder’s wealth FALSE 19) If there are conflict between shareholder’s wealth FALSE 19) If there are conflict between shareholder’s wealth
maximization and ethical consideration, the former must prevail. maximization and ethical consideration, the former must prevail. maximization and ethical consideration, the former must prevail.
TRUE 20) Managers generally welcome hostile takeovers since they TRUE 20) Managers generally welcome hostile takeovers since they TRUE 20) Managers generally welcome hostile takeovers since they
often increase the company’s stock price. often increase the company’s stock price. often increase the company’s stock price.