QUIZ IN BUSINESS FINANCE

Name________________________________________ Section_______________Score________

I. CLASSIFICATION. Write the word STRATEGIC if the statement relates to long-

term planning, and TACTICAL if short-term planning. (10 points)

_______________ 1. Set of goals that lay out the overall direction of the company.
_______________ 2. Two to 10 years.
_______________ 3. Focuses on the everyday functioning of the company.
_______________ 4. Specific steps and actions that will ultimately reach the company’s
long-term goals.
_______________ 5. Persons involved are the top management.
_______________ 6. One year or less.
_______________ 7. Less detailed.
_______________ 8. Persons involved are the top management with the help of lower
level management.
_______________ 9. More detailed.
_______________ 10. Focuses on the overall direction of the company.

II. Arrange the steps in planning, write 1 for the first step, 2 for the second step,
and so on. (7 points)

_______ Identify goal-related tasks

_______ Monitoring and controlling
_______ Set goals/ objectives
_______ Determine contingent plans
_______ Execution of plan
_______ Identify resources
_______ Create responsibility centers and timeline

III. Prepare a production budget based on the forecasted sales and given
additional information before the table. (12 points)

Given:

- Company would like to maintain 100 units in its ending inventory at the end of
January, 200 units at the end of February, and 300 units at end of March.

- Beginning inventory at the start of January amounts to 50 units.

 January February March
Projected Sales 1,000 1,500 3,500
Target Ending inventory
Total
Beginning inventory
Required production

IV. Prepare a cash budget based on the sales budget and additional given
information before the table. (25 points)
Given:

- Assume the selling price is P50/unit.

- Sales for each month are expected to be collected as follows:

a. Month of sale: 50%

b. A month after sale: 30%

c. 2 months after sale: 20%

MONTH
January February March April May
Projected Sales 5000 5600 5700 6000 8000
Sales in Pesos

Collection-
current month sales
Collection-
previous month sales
Collection-
two months prior sale
Total Collection from
sales

V. Bonus points (6 points)

Name one of your favorite OPM songs and write at least 5 lines of the song.
Test 1- ____/10
Test II- ____/ 7
Test III- ____/12
Test IV- ____/25
Test V- ____/ 6
Total - ____/60 points