1. Which of the following are characteristics of money market securities?

1. Long term maturities.
2. Low default risk.
3. Highly Marketable.
4. Very liquid.

1. I and III only.
2. II and III only.
3. II, III and IV only.
4. I, II, III and IV

2. Current liabilities consist of all below EXCEPT _______________

A. Account Payable.

B. Account Receivable.

C. Notes Payable.

D. Tax accrual.

3. All below are Preferred Share features EXCEPT ________________

1. A type of stock that provide a fixed dividend, but at the discretion of the Board of Directors.
2. Preferred stock ranks below the debt but above common stock.
3. Has ownership of the company.
4. All of the above.

4. Arrange the following items in current assets according to its liquidity:

A. Cash, Inventories, Marketable Securities, Account Receivable.

B. Cash, Account Receivable, Inventories, Marketable Securities.

C. Cash, Marketable Securities, Account Receivable, Inventories.

D. Cash, Account Receivable, Marketable Securities, Inventories.

5. _______________ is the process of determining the future value (FV) of a cash flow or a series of cash flows, while _________________ is the process of finding the present value(PV) of a future cash flow or series of cash flows.

A.Calculating, accounting.

B. Discounting, compounding.

C. Compounding, forwarding.

D. Compounding, discounting.

6. Which statement is FALSE?

1. Future value annuity is an example of annuity.
2. A perpetuity is an annuity that has maturity period.
3. An annuity is a series of equal payment made for a specified number of years.
4. Ordinary annuity is an annuity in which the cash flows occur at the end of each period.

7. Which of the following items are basic elements that affectthe value of bond?

1. The required rate of return
2. The interest payment
3. The maturity period
4. The payback period

A. I and II

B. I and III

C. I, II and III

D. IV only

8. Which is FALSE ?

1. Assets = Owners Equity + Liabilities.
2. Assets Liabilities = Owners Equity.
3. Assets + Liabilities = Owners Equity.
4. Assets Owners Equity = Liabilities.