Help for Education: Personal Finance

BAMM6004 Personal Finance


	Inventory management	This involves proper purchasing of raw material, handling, storing and recording.
	Php 44,348	You need to have Php 51,000 after 3 years. Assuming that you will only deposit once with a 5% annual interest, how much will you deposit today?
	Both Statements are False	Statement I. An investment is an asset or item that is acquired with the expectation that it will generate interest, income or appreciate its value in the future. Both Statements are True This is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. Bonds Statement I. Short-term goals have a time frame from one to five years.
	financial manager	The one in charge of all organization’s finance and accounting functions. He typically reports to the chief executive officer.
	financial market	It is where stocks, bonds, and other financial securities can be purchased or sold.
	Real estate	Jenny decided to buy a lot to be used in the future for her planned business. She invested in
	financial system	It is the art and science that describes the management, creation and study of money, banking, credit, investments, assets, and liabilities.
	financial instrument	It is the written legal obligation of one party to transfer a thing of value -usually money - to another party at some future date, under certain conditions.
	Pump and dump	This is a scheme that attempts to boost the price of owned stock through false recommendations, misleading or greatly exaggerated statements in order to sell the cheaply purchased stock at a higher price.
	Periodic payment at the end of every period	Which of the following is not needed in solving for compound interest
	Risk-return tradeoff	This is the principle that potential return rises with an increase in risk.
	Consumable-product goals	Marry wants to buy 10 pcs of bond papers for her art class. The statement best describes
	Insurance	John has a highly dangerous job. He pays premiums every month by depositing the money to the bank account of the engaged company. He does this so that he will have remuneration in case he will be suffering from an accident. John is investing on
	Principal	Which of the following is not needed in solving for annuity
	Chen plans to buy a new bag worth Php2,000. He plans to buy it after two month by saving a part of his daily allowance.	Which is a SMART goal?
	Php 4,755	What is the present value of annuity of Php 1,500 payable at the end of every year for 4 years, if interest rate of money is worth 10%?
	commercial banks	It provides safety deposit boxes, mortgages, debit and credit cards, automated teller machines, online banking, and other financial services.
	Php 78,352.62	Ken wants to have Php 100,000 after 5 years. If the bank pays 5% interest on deposits, how much must he deposit today in order to have that amount in the future?
	Durable-product goals	Ben aims to buy a house for his family so he plans to loan in a bank and save a part of his salary. The statement best describes
	Reaction-Oriented	Which is not included in SMART goal-setting guidelines
	notes	This is a debt security obligating repayment of a loan with a corresponding interest within a defined period of time.
	Stockholders	These term describes the people who receive allocated profits in form of dividends.
	banking institutions	It accepts deposits from the public and creates credit which is being supervised by a regulatory agency.
	FALSE	Common stockholders are usually paid first and common stockholders are paid if there is remaining distributable income.
	wealth	It is the true value or net worth of business.
	Durable-product goals	These product goals usually involve infrequently purchased, expensive items such as appliances, cars, and sporting equipment; these consist of tangible items.
	TRUE	Small and new firms are usually more dependent on trade credit, as they find it relatively difficult to obtain funds from other sources.
	TRUE	The risk-return tradeoff is the principle that potential return rises with an increase in risk.
	Know your take home pay	Mr. John determines his monthly salary, overtime pays, taxes, SSS, Pag-IBIG and PhilHealth contributions. Which statement best depicts the situation?
	FALSE	Savings is only possible if income is lower than expenses.
	wealth	It is the true value or net worth of business.
	Trade credit	This is the credit extended by one trader to another for purchasing goods or services
	Investing	Mr. Chen bought a land.
	Both Statements are False	Statement I. A SMART financial goal need not be action-oriented Statement I is False; Statement II is True How much will an ordinary annuity of Php 650 per year be worth in eight years at an annual interest rate of 8 percent? Php 6,913.79 What annual interest rate would you need in order to have an ordinary annuity of Php7,500 per year accumulate to Php 279,600 in 15 years? 12% Jennie, the owner of Hawaii Resort used her money to put up an additional cottage. Jennie invested in Real estate Which is not a principle of personal finance? Be an irresponsible borrower who repays as promised, showing you are worthy of getting credit in the future. You need to have Php 100,000 after 4 years. Assuming that you will only deposit once with a 10% annual interest, how much will you deposit today? Php 71,428.57 Jen made a bank deposit worth Php 15,000. With 20% annual interest, how much is the future value of his deposit after 5 years? Php 30,000 Marry wants to buy 10 pcs of bond papers for her art class. The statement best describes Consumable-product goals What is the present value of annuity due of Php 2,500 payable at the beginning of every year for 4 years, if interest rate is 10%? Php 8,717.13 Marrie pays monthly premiums to a company with the agreement that Marrie will be imdemnified in case her house gets damaged because of a natural disaster or it gets burned due to an unwanted accident. This is a type of Insurance Which is not a basic principle of personal finance Low returns means high risks John made a bank deposit worth Php 10,000. With 0.1% annual interest, how much is the future value of his deposit after 4 years? Php 10,040 What will a deposit of Php 4,500 at 12% compounded monthly (12 times a year) be worth at the end of 10 years? Php 14,851.80 Armi deposits Php 4,500 at the beginning of each month (12 times a year) in a fund that serves at 24% compounded monthly. How much is the fund at the end of 3 years? Php 283,654.15 Statement I. A return is the variability of returns from those that are expected.
	To graduate in senior high school next year	Which describes a short term goal?
	Simple interest	On the part of the borrower, this is the interest paid on the original amount, or principal, borrowed.
	It is advisable to have insurance in high value economic activities	Which statement is correct?
	Compound interest	This is the interest paid (earned) on any previous interest, as well as on the principal borrowed (lent).
	Compare interest rates	Jen decided to deposit her money in a cooperative savings acccount because it yield higher interest than bank savings account. Which statement best depicts the situation?
	Durable-product goals	Ranni love to watch a movies. He decided to buy a television set so that she can watch movies every day. The statement best describes
	profit	It is the difference between income and expenses.
	Insurance	It is a contract in which an individual or entity receives financial protection or reimbursement against losses from the insurer or the insurance company.
	Mutual funds	These are investment securities that enable investors to pool their money together into one professionally managed investment.
	bonds	It is a debt security in which an investor lends his money to an entity which borrows the funds for a defined period of time at defined interest rate.
	Stocks	This is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
	To graduate in college after 6 years	Which describes a long-term term goal?
	Positive	If a business entity has a larger current assets than its current liabilities, the entity has _______ working capital.
	Consumable-product goals	Jen aims to buy a chocolate cake for her birthday so she saves every day. The statement best describes
	Factoring	This is financing method in which a business owner sells accounts receivable at a discount to a third-party funding source to raise capital
	Start saving at young age	Jenny engages in time deposits in the bank. Which statement best depicts the situation?
	TRUE	Tell if the information is part of the Accounting Cycle: closing journal entries.
	Earning	Mr. Pan is working as a corporate accountant, he earns Php50,000 in a month. This statement best describes
	To buy a house after 3 years	Which describes an intermediate term goal?
	Mutual fund	This is a collection of investments from one or more categories.
	bonds	It is a debt security in which an investor lends his money to an entity which borrows the funds for a defined period of time at defined interest rate.
	financial manager	The one in charge of all organization’s finance and accounting functions. He typically reports to the chief executive officer.
	ABC	The _____ method of inventory control is a method which controls expensive inventory items more closely than less expensive items.
	Personal finance	This defines all financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings and retirement planning.
	Future value	This is the value of a current asset at a specified date in the future based on an assumed rate of growth over time.
	financial statement	It is a report that outlines the financial activities of a business.
	Pump and dump	This is a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price
	TRUE	If you require a 9 percent annual return on your investments, you would prefer Php15,000 five years from today rather than an ordinary annuity of Php 1,000 per year for 15 years.
	TRUE	Generally, the higher the risk the higher the return can be.
	investment banks	It assist companies involved in merges and acquisitions.
	Working capital management	________ is needed in the proper cash controlling in purchase of raw materials or goods, payment of salaries and wages, coping with daily expenses and providing credit obligations.
	TRUE	Tell if the information is part of the Accounting Cycle: preparation of financial statements.
	Be an irresponsible borrower who repays as promised, showing you are worthy of getting credit in the future.	Which is not a principle of personal finance?
	Portfolio	This is a mutual fund term commonly used to describe the combined holdings in one form.
	Php 30,000	Jen made a bank deposit worth Php 15,000. With 20% annual interest, how much is the future value of his deposit after 5 years?
	Retained earnings	The company has already achieved its net income. He then distributed 20% of it as dividends. The amount remaining is being reserved by the company for its growth and development. This is called as ___________.
	FALSE	Risk is the income received on an investment plus any change in market price.
	Mutual funds	This is a collection of investments from one or more categories
	income statement	It is a financial statement that gives the result of the business operation of financial performance of a business for a given period.
	Stocks	These are securities that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
	Durable-product goals	Garry plans to buy a calculator to aid him in his math class. The statement best describes
	financial market	It is where stocks, bonds, and other financial securities can be purchased or sold.
	Present value	This is the current worth of a future sum of money or stream of cash flows given a specified rate of return
	Start saving at young age	A senior high school student deposits a part of his salary to his bank account so that he will have funds for future use. Which statement best depicts the situation?
	TRUE	Tell if the information is part of the Accounting Cycle: reversing journal entries.
	banking institutions	It accepts deposits from the public and creates credit which is being supervised by a regulatory agency.
	TRUE	Tell if the information is part of the Accounting Cycle: posting to the general ledger.
	Spending	Anna bought food and drinks.
	financial instrument	It is the written legal obligation of one party to transfer a thing of value -usually money - to another party at some future date, under certain conditions.
	Both Statements are True	Statement I. A SMART financial goal need not be action-oriented Statement I is False; Statement II is True John made a bank deposit worth Php 10,000. With 0.1% annual interest, how much is the future value of his deposit after 4 years? Php 10,040 Statement I. The risk-return tradeoff is the principle that potential return rises with an increase in risk.
	Expend everything you have because you have lots of money	Which is not a basic principle of personal finance
	Php 6,433.38	How much will an ordinary annuity of Php 650 per year be worth in eight years at an annual interest rate of 6 percent?
	stocks	It is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings.
	Consumable-product goals	Ranni plans to watch a movie in the cinema this week-end. The statement best describes
	Php 221,369.68	Hannah made a bank loan worth Php 200,550 with 5% interest compounded semi-annually (2 times in a year). If she is to pay at the end of the period only, how much will be the value of the loan after 2 years?
	Php 400	John made a bank deposit worth Php 10,000. With 1% annual interest, how much is the total interest after 4 years?
	Transaction	The ________ motive of holding cash is to meet payments arising in the ordinary course of business.
	TRUE	Investing also makes your money work for you and is considered as a valuable financial resource
	finance	It is a framework for describing set of markets, organizations, and individuals that engage in the transaction of financial instruments, as well as regulatory institutions.
	Real estate	Jennie, the owner of Hawaii Resort used her money to put up an additional cottage. Jennie invested in
	Real estate	Which type of investing vehicle does not involve an intermediary financial institution?
	Statement I is False; Statement II is True	Statement I. The risk-return tradeoff is the principle that potential return rises with an increase in risk. Both Statements are True Which is not a basic principle of personal finance Low returns means high risks Which is not a principle of personal finance? Be an irresponsible borrower who repays as promised, showing you are worthy of getting credit in the future. A senior high school student deposits a part of his salary to his bank account so that he will have funds for future use. Which statement best depicts the situation? Start saving at young age This is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. Stock What is the present value of annuity due of Php 2,500 payable at the beginning of every year for 4 years, if interest rate is 10%? Php 8,717.13 Statement I. A SMART financial goal need not be action-oriented
	TRUE	Don't expect that you will be earning interest if you did not deposit an amount in your bank account.
	Saving	John earns Php 2,000 in a week. He always see to it that he deposits Php500 every week in his cooperative personal account. This amount is reserved for future economic activities.This statement best describes
	financial statement	It is a report that outlines the financial activities of a business.
	stocks	It is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings.
	Accounts receivable	This is the amount of money owed to a firm by customers who have bought goods or services on credit.
	Prime bank	Scammers mislead investors by suggesting that big financially sound institutions participate in their programs, when in fact such connections do not exist.
	Philippine Stock Market	It is a private organization created to provide and maintain a fair, efficient, transparent, and orderly market for the purchases and sales of stocks and other securities.
	Forex scams	This offer investors the opportunity to invest in foreign exchange, but in the end, the money is lost to those running the scheme.
	Ken plans to buy a cell phone worth Php 2,000. He plans to buy it after two month by saving a part of his daily allowance.	Which is a SMART goal?
	Donating	Garry gave Php100 for the BantayBata fund.
	credit unions	These are non-profit financial cooperatives owned by and operated for the benefits of its members.
	Php 8,273.25	What will a deposit of Php 4,500 at 7% compounded annual interest be worth if left in the bank for nine years?
	TRUE	Tell if the information is part of the Accounting Cycle: preparation of a post-closing trial balance.
	Php 15,675	Jen made a bank deposit worth Php 15,000. With 0.9% annual interest, how much is the future value of his deposit after 5 years?
	To buy a television set by saving a part of my salary.	Which goal is action oriented?
	Stock	This is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
	FALSE	Preference shares are unsecured promissory note issued by a firm to raise funds to meet short-term debt obligations.
	Bank deposits	This is a type of investment which consists of money placed into a banking institution.
	TRUE	Aging of receivables is a schedule of customer balances classified by the length of time they have been unpaid.
	Php 8,717.13	What is the present value of annuity due of Php 2,500 payable at the beginning of every year for 4 years, if interest rate is 10%?
	To graduate with the distinction - cum laude	Jen is a senior high school student. Which of her goals is realistic?
	Php 14,851.80	What will a deposit of Php 4,500 at 12% compounded monthly (12 times a year) be worth at the end of 10 years?
	Pyramid scam	A person earns by recruiting people who would pay a registration fee without getting any goods to in exchange of their payments. The recruited person also earns in the same manner.
	Start saving an old age	Which is not a principle of personal finance?
	Bonds	This is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
	Low returns means high risks	Which is not a basic principle of personal finance
	TRUE	Tell if the information is part of the Accounting Cycle: journalizing the transactions.
	Ponzi scheme	This is a form of fraudulent investment operation where the individual or organization operator pays returns to its investors from new capital paid to the operators by new investors recruited.
	Bank deposit	This is a type of investment which consists of money placed into a banking institution.
	Map your financial future	John, a government employee, plans retire at the age on 55. Which statement best depicts the situation?
	Sell insurance to avoid being wiped out by a financial loss, such as an illness or accident.	Which is not a principle of personal finance?
	Borrowing	Kiela went to the sarisari store and she bought food on account. This is to be paid when she gets her salary net week.
	credit unions	These are non-profit financial cooperatives owned by and operated for the benefits of its members.
	Action-oriented goals provide the basis for the personal financial activities you will undertake.	Which statement is correct?
	Philippine Stock Market	It is a private organization created to provide and maintain a fair, efficient, transparent, and orderly market for the purchases and sales of stocks and other securities.
	Php 10,400	John made a bank deposit worth Php 10,000. With 1% annual interest, how much is the future value of his deposit after 4 years?
	Php 21,750	Jen made a bank deposit worth Php 15,000. With 9% annual interest, how much is the future value of his deposit after 5 years?
	Php 16,500	Jen made a bank deposit worth Php 15,000. With 2% annual interest, how much is the future value of his deposit after 5 years?
	Mutual funds	In this type of investment, you can invest in stocks, bonds, cash or other assets
	Cash management	This is the maintenance of appropriate level of cash to meet the firm's cash requirements and to maximize income on idle funds.
	Equity shares	Companies offer these shares initially at the stok exhange. This specific type of shares has unstable earnings.
	Within 3 years, Anna plans to buy a lot worth Php 1,000,000 by loaning in PgIBIG.	Which is a SMART goal?
	Prime bank	Which is an example of an investment scam
	Spending	Cherry paid the electricity and water bills. This statement best describes
	Investment	This is an asset or item that is acquired with the expectation that it will generate interest, income or appreciate its value in the future.
	cash management	It deals with the proper management of cash on hand and cash in bank.
	commercial banks	It provides safety deposit boxes, mortgages, debit and credit cards, automated teller machines, online banking, and other financial services.
	It is important know exactly what your goals are so you can create a plan designed to achieve those objectives.	Which statement is correct?
	Personal Finance	This is the management of money and financial decisions for a person or family including budgeting, investments, retirement planning and investments
	Php 8,081.55	What will a deposit of Php 4,500 at 10% compounded semiannually be worth if left in the bank for six years?
	TRUE	Tell if the information is part of the Accounting Cycle: identification of events to be recorded.
	FALSE	Fixed capital requirement includes resources for paying salaries and wages.
	Borrowing	Ms Kelly had an emergency situation, she made a cash advance from her workplace worth Php10,000. This statement best describes
	Start saving at young age	Mr. John deposits a part of his salary to his cooperative account so that he will have funds for future use. Which statement best depicts the situation?
	investment banks	It assist companies involved in merges and acquisitions.
	Stay assured	Which is not a principle of personal finance?
	cash management	It deals with the proper management of cash on hand and cash in bank.
	Depreciate	The value of equipement decreases as time passes by because it is being used. With this statement we can say that the equipment ________ in value.
	TRUE	It is good to plan ahead on how to allocate your income for savings and expenses.
	Real estate	These are properties such as land and the buildings as well as the attached land improvements and natural resources
	Php 6,913.79	How much will an ordinary annuity of Php 650 per year be worth in eight years at an annual interest rate of 8 percent?
	Premiums	Payments on insurances are called insurance _________.
	Ponzi scheme	This is a type of pyramid scheme, this is where money from new investors is used to provide a return to previous investors.
	Offshore investing scheme	This type of scheme is extremely difficult for your local law enforcement agencies to investigate because the individuals involved are foreign criminals.
	Equity shares	This is also termed as common shares
	treasurer	The one responsible for obtaining sources of financing for the organization, projecting cash flow needs, and managing cash and short-term investments.
	Php 2,603.31	What is the present value of annuity of Php 1,500 payable at the end of every year for 2 years, if money is worth 12%?
	financial system	It is the art and science that describes the management, creation and study of money, banking, credit, investments, assets, and liabilities.
	Insurance	This is a means of protection from financial loss
	TRUE	Tell if the information is part of the Accounting Cycle: adjusting journal entries.
	treasurer	The one responsible for obtaining sources of financing for the organization, projecting cash flow needs, and managing cash and short-term investments.
	To top the	Ben is a senior high school student. Which of his goals is realistic?
	finance	It is a framework for describing set of markets, organizations, and individuals that engage in the transaction of financial instruments, as well as regulatory institutions.
	income statement	It is a financial statement that gives the result of the business operation of financial performance of a business for a given period.
	FALSE	A return is the variability of returns from those that are expected.
	Php 18,140.59	Ben needs to have Php 20,000 after two years. Assuming that he will only deposit once, with a 5% interest compounded annually, how much will you deposit today?
	Debentures	These are a debt instruments which are backed only by the general creditworthiness and reputation of the issuer.
	Loan from banks and financing institutions	Mr. A borrowed funds from ABC Bank and HIJ Financing company. His sources of finance is termed as
	Boiler room scheme	This scheme cold call potential investors and pressure them to buy shares. Boiler room operators often set up in a different jurisdiction or country than the people they target in order to avoid detection by securities regulators and enforcement agencies.
	Start saving at young age	Mr. Ken disburses an extra amount for his SSS and Pag-IBIG contributions. Which statement best depicts the situation?
	Bank deposits	Kelly has Php 100,000 in her savings account. Kelly invests in
	notes	This is a debt security obligating repayment of a loan with a corresponding interest within a defined period of time.
	TRUE	Tell if the information is part of the Accounting Cycle: preparing worksheet and adjusting entries.
	TRUE	Tell if the information is part of the Accounting Cycle: preparation of trial balance.
	Ponzi scheme	This scheme can survive simply by persuading most existing participants to reinvest their money, with a relatively small number of new participants
	profit	It is the difference between income and expenses.
	Insurances can help you recover in case of losses	Which statement is correct?
	statement of change in equity	It is a financial statement that shows the movements in equity accounts at a given period of time.
	TRUE	Factoring is a financing method in which a business owner sells accounts receivable at a discount to a third-party funding source to raise capital.
	FALSE	Don't take time to think about your financial goals, along with a realistic plan for achieving them. It's just a waste of time.
	Offshore investing scheme	This is a fraudulent investment scheme from illegitimate or non-existent organizations outside your country.
	statement of change in equity	It is a financial statement that shows the movements in equity accounts at a given period of time.
	FALSE	It is good to have negative credit record.
	Statement I is true; Statement II is false	Statement I. Long-term goals should be planned in coordination with short-term and intermediate ones Both Statements are True Statement I. Ordinary annuity means that periodic payments are made at the end of each payment interval while nnuity due means that periodic payments are made at the beginning of each payment interval.
	Both Statements are False	Statement I. Ordinary annuity means that periodic payments are made at the end of each payment interval while nnuity due means that periodic payments are made at the beginning of each payment interval. Statement I is true; Statement II is false Jen is a senior high school student. Which of her goals is realistic? To graduate with the distinction - cum laude Jen made a bank deposit worth Php 15,000. With 20% annual interest, how much is the future value of his deposit after 5 years? Php 30,000 This is a collection of investments from one or more categories. Mutual fund This is a type of investment which consists of money placed into a banking institution. Bank deposit Statement I. Short-term goals have a time frame from one to five years.
	Php 3,232.50	Shella made a bank deposit worth Php 21,550. With 5% annual interest, how much is the total interest after 3 years?