Personal Finance

 

BAMM6004 Personal Finance

 





Inventory managementThis involves proper purchasing of raw material, handling, storing and recording.

Php 44,348You 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 FalseStatement 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 managerThe one in charge of all
organization’s finance and accounting functions. He typically reports to the
chief executive officer.

financial marketIt is where stocks, bonds, and other financial securities can be purchased or sold.

Real estateJenny decided to buy a lot to be used in the future for her planned business. She invested in

financial systemIt is the art and science that
describes the management, creation and study of money, banking, credit,
investments, assets, and liabilities.

financial instrumentIt 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 dumpThis 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 periodWhich of the following is not needed in solving for compound interest

Risk-return tradeoffThis is the principle that potential return rises with an increase in risk.

Consumable-product goalsMarry wants to buy 10 pcs of bond papers for her art class. The statement best describes

InsuranceJohn 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

PrincipalWhich 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 4,755What 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 banksIt
provides safety deposit boxes, mortgages, debit and credit cards, automated
teller machines, online banking, and other financial services.

Php 78,352.62Ken 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 goalsBen 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-OrientedWhich is not included in SMART goal-setting guidelines

notesThis is a debt security obligating repayment of a loan with a corresponding interest within a defined period of time.

StockholdersThese term describes the people who receive allocated profits in form of dividends.

banking institutionsIt accepts deposits from the public
and creates credit which is being supervised by a regulatory agency.

FALSECommon stockholders are usually paid first and common stockholders are paid if there is remaining distributable income.

wealthIt is the true value or net worth of
business.

Durable-product goalsThese product goals usually involve infrequently purchased, expensive items such as appliances, cars, and sporting equipment; these consist of tangible items.

TRUESmall and new firms are usually more dependent on trade credit, as they find it relatively difficult to obtain funds from other sources.

TRUEThe risk-return tradeoff is the principle that potential return rises with an increase in risk.

Know your take home payMr. John determines his monthly salary, overtime pays, taxes, SSS, Pag-IBIG and PhilHealth contributions. Which statement best depicts the situation?

FALSESavings is only possible if income is lower than expenses.

wealthIt is the true value or net worth of business.

Trade creditThis is the credit extended by one trader to another for purchasing goods or services

InvestingMr. Chen bought a land.

Both Statements are FalseStatement 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 yearWhich describes a short term goal?

Simple interestOn 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 activitiesWhich statement is correct?

Compound interestThis is the interest paid (earned) on any previous interest, as well as on the principal borrowed (lent).

Compare interest ratesJen 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 goalsRanni love to watch a movies. He decided to buy a television set so that she can watch movies every day. The statement best describes

profitIt is the difference between income and expenses.

InsuranceIt is a contract in which an individual or entity receives financial protection or reimbursement against losses from the insurer or the insurance company.

Mutual fundsThese are investment securities that enable investors to pool their money together into one professionally managed investment.

bondsIt 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.

StocksThis 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 yearsWhich describes a long-term term goal?

PositiveIf a business entity has a larger current assets than its current liabilities, the entity has _______ working capital.

Consumable-product goalsJen aims to buy a chocolate cake for her birthday so she saves every day. The statement best describes

FactoringThis 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 ageJenny engages in time deposits in the bank. Which statement best depicts the situation?

TRUETell if the information is part of the Accounting Cycle: closing journal entries.

EarningMr. Pan is working as a corporate accountant, he earns Php50,000 in a month. This statement best describes

To buy a house after 3 yearsWhich describes an intermediate term goal?

Mutual fundThis is a collection of investments from one or more categories.

bondsIt 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 managerThe one in charge of all organization’s finance and accounting functions. He typically reports to the chief executive officer.

ABCThe _____ method of inventory control is a method which controls expensive inventory items more closely than less expensive items.

Personal financeThis defines all financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings and retirement planning.

Future valueThis is the value of a current asset at a specified date in the future based on an assumed rate of growth over time.

financial statementIt is a report that outlines the
financial activities of a business.

Pump and dumpThis 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

TRUEIf 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.

TRUEGenerally, the higher the risk the higher the return can be.

investment banksIt 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.

TRUETell 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?

PortfolioThis is a mutual fund term commonly used to describe the combined holdings in one form.

Php 30,000Jen 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 earningsThe 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 ___________.

FALSERisk is the income received on an investment plus any change in market price.

Mutual fundsThis is a collection of investments from one or more categories

income statementIt is a financial statement that
gives the result of the business operation of financial performance of a
business for a given period.

StocksThese are securities that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

Durable-product goalsGarry plans to buy a calculator to aid him in his math class. The statement best describes

financial marketIt is where stocks, bonds, and other
financial securities can be purchased or sold.

Present valueThis 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 ageA 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?

TRUETell if the information is part of the Accounting Cycle: reversing journal entries.

banking institutionsIt accepts deposits from the public and creates credit which is being supervised by a regulatory agency.

TRUETell if the information is part of the Accounting Cycle: posting to the general ledger.

SpendingAnna bought food and drinks.

financial instrumentIt 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 TrueStatement 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 moneyWhich is not a basic principle of personal finance

Php 6,433.38How much will an ordinary annuity of Php 650 per year be worth in eight years at an annual interest rate of 6 percent?

stocksIt 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 goalsRanni plans to watch a movie in the cinema this week-end. The statement best describes

Php 221,369.68Hannah 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 400John made a bank deposit worth Php 10,000. With 1% annual interest, how much is the total interest after 4 years?

TransactionThe ________ motive of holding cash is to meet payments arising in the ordinary course of business.

TRUEInvesting also makes your money work for you and is considered as a valuable financial resource

financeIt 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 estateJennie, the owner of Hawaii Resort used her money to put up an additional cottage. Jennie invested in

Real estateWhich type of investing vehicle does not involve an intermediary financial institution?

Statement I is False; Statement II is TrueStatement 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

TRUEDon't expect that you will be earning interest if you did not deposit an amount in your bank account.

SavingJohn 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 statementIt is a report that outlines the financial activities of a business.

stocksIt 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 receivableThis is the amount of money owed to a firm by customers who have bought goods or services on credit.

Prime bankScammers mislead investors by suggesting that big financially sound institutions participate in their programs, when in fact such connections do not exist.

Philippine Stock MarketIt 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 scamsThis 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?

DonatingGarry gave Php100 for the BantayBata fund.

credit unionsThese are non-profit financial
cooperatives owned by and operated for the benefits of its members.

Php 8,273.25What will a deposit of Php 4,500 at 7% compounded annual interest be worth if left in the bank for nine years?

TRUETell if the information is part of the Accounting Cycle: preparation of a post-closing trial balance.

Php 15,675Jen 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?

StockThis is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

FALSEPreference shares are unsecured promissory note issued by a firm to raise funds to meet short-term debt obligations.

Bank depositsThis is a type of investment which consists of money placed into a banking institution.

TRUEAging of receivables is a schedule of customer balances classified by the length of time they have been unpaid.

Php 8,717.13What 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 laudeJen is a senior high school student. Which of her goals is realistic?

Php 14,851.80What will a deposit of Php 4,500 at 12% compounded monthly (12 times a year) be worth at the end of 10 years?

Pyramid scamA 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 ageWhich is not a principle of personal finance?

BondsThis 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 risksWhich is not a basic principle of personal finance

TRUETell if the information is part of the Accounting Cycle: journalizing the transactions.

Ponzi schemeThis 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 depositThis is a type of investment which consists of money placed into a banking institution.

Map your financial futureJohn, 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?

BorrowingKiela went to the sarisari store and she bought food on account. This is to be paid when she gets her salary net week.

credit unionsThese 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 MarketIt 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 10,400John 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 21,750Jen 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 16,500Jen 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 fundsIn this type of investment, you can invest in stocks, bonds, cash or other assets

Cash managementThis is the maintenance of appropriate level of cash to meet the firm's cash requirements and to maximize income on idle funds.

Equity sharesCompanies 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 bankWhich is an example of an investment scam

SpendingCherry paid the electricity and water bills. This statement best describes

InvestmentThis 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 managementIt deals with the proper management
of cash on hand and cash in bank.

commercial banksIt 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 FinanceThis is the management of money and financial decisions for a person or family including budgeting, investments, retirement planning and investments

Php 8,081.55What will a deposit of Php 4,500 at 10% compounded semiannually be worth if left in the bank for six years?

TRUETell if the information is part of the Accounting Cycle: identification of events to be recorded.

FALSEFixed capital requirement includes resources for paying salaries and wages.

BorrowingMs Kelly had an emergency situation, she made a cash advance from her workplace worth Php10,000. This statement best describes

Start saving at young ageMr. 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 banksIt assist companies involved in merges and acquisitions.

Stay assuredWhich is not a principle of personal finance?

cash managementIt deals with the proper management of cash on hand and cash in bank.

DepreciateThe value of equipement decreases as time passes by because it is being used. With this statement we can say that the equipment ________ in value.

TRUEIt is good to plan ahead on how to allocate your income for savings and expenses.

Real estateThese are properties such as land and the buildings as well as the attached land improvements and natural resources

Php 6,913.79How much will an ordinary annuity of Php 650 per year be worth in eight years at an annual interest rate of 8 percent?

PremiumsPayments on insurances are called insurance _________.

Ponzi schemeThis is a type of pyramid scheme, this is where money from new investors is used to provide a return to previous investors.

Offshore investing schemeThis type of scheme is extremely difficult for your local law enforcement agencies to investigate because the individuals involved are foreign criminals.

Equity sharesThis is also termed as common shares

treasurerThe one responsible for obtaining
sources of financing for the organization, projecting cash flow needs, and
managing cash and short-term investments.

Php 2,603.31What 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 systemIt is the art and science that describes the management, creation and study of money, banking, credit, investments, assets, and liabilities.

InsuranceThis is a means of protection from financial loss

TRUETell if the information is part of the Accounting Cycle: adjusting journal entries.

treasurerThe one responsible for obtaining sources of financing for the organization, projecting cash flow needs, and managing cash and short-term investments.

To top theBen is a senior high school student. Which of his goals is realistic?

financeIt 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 statementIt is a financial statement that gives the result of the business operation of financial performance of a business for a given period.

FALSEA return is the variability of returns from those that are expected.

Php 18,140.59Ben 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?

DebenturesThese are a debt instruments which are backed only by the general creditworthiness and reputation of the issuer.

Loan from banks and financing institutionsMr. A borrowed funds from ABC Bank and HIJ Financing company. His sources of finance is termed as

Boiler room schemeThis 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 ageMr. Ken disburses an extra amount for his SSS and Pag-IBIG contributions. Which statement best depicts the situation?

Bank depositsKelly has Php 100,000 in her savings account. Kelly invests in

notesThis is a debt security obligating
repayment of a loan with a corresponding interest within a defined period of
time.

TRUETell if the information is part of the Accounting Cycle: preparing worksheet and adjusting entries.

TRUETell if the information is part of the Accounting Cycle: preparation of trial balance.

Ponzi schemeThis scheme can survive simply by persuading most existing participants to reinvest their money, with a relatively small number of new participants

profitIt is the difference between income
and expenses.

Insurances can help you recover in case of lossesWhich statement is correct?

statement of change in equityIt is 
a financial statement that shows the movements in equity accounts at a
given period of time.

TRUEFactoring is a financing method in which a business owner sells accounts receivable at a discount to a third-party funding source to raise capital.

FALSEDon'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 schemeThis is a fraudulent investment scheme from illegitimate or non-existent organizations outside your country.

statement of change in equityIt is a financial statement that shows the movements in equity accounts at a given period of time.

FALSEIt is good to have negative credit record.

Statement I is true; Statement II is falseStatement 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 FalseStatement 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 3,232.50Shella made a bank deposit worth Php 21,550. With 5% annual interest, how much is the total interest after 3 years?