BF-2nd-Qtr Exam Pointers PDF

1\. Temporary working capital -It is the working capital over the permanent working capital given its production capacity or relevant sales range. 2 Working Capital management.is the administration and control of the company's working capital. 3\. Insurance is a contract in which an individual or...

1\. Temporary working capital -It is the working capital over the permanent working capital given its production capacity or relevant sales range. 2 Working Capital management.is the administration and control of the company's working capital. 3\. Insurance is a contract in which an individual or entity receives financial protection or reimbursement against losses from an insurance. 4\. Mid Sixties and Beyond A life cycle of financial planning that tells enjoying retirement through leisure activities but also guarding against major medical cost.. 5\. Data Analysis is the 3^rd^ steps in Personal Financial Planning Process\... 6\. Liquidity refers to the company's ability to satisfy its short-term obligations as they come due. 6\. Production Budget provides the information regarding the number of units that should be produced over a given accounting period on expected sales and targeted level of ending inventories. 7\. Total Asset Turnover Ratio measures the company's ability to generate revenues for every peso of asset invested. 8\. Management planning is about setting the goals of the organization and identifying ways on how to achieve them. 9\. Corporate bonds is a long-term debt instruments issued by corporations 10\. Range shows the difference between the best possible retuen and the worst possible returns. 11\. Savings Account provides a low fixed rate of return but provides the convenience of availability by allowing the depositor to easily deposit and withdraw from the account at any banking day. 12\. Personal Finance includes all financial decisions and activities of an individual including budgeting, insurance mortgage etc\... 13\. Profitability refers to the company's ability to generate earnings 14\. Management risk is the risk faced by the investors affected by the decisions made by the firm's management and board of directors. 15\. Cash budget statement of the firm's planned inflows and outflows of cash 16\. Beta is It is a measure of sensitivity's return relative to the return of a broad-based market portfolio securities. 17\. Commercial papers provides a low fixed rate of return but provides the convenience of availability by allowing the depositor to easily deposit and withdraw from the account at any banking day. 18\. Investment is an asset or item acquired with the goal of generating income or appreciation. 19\. Planning important aspect of the firm's operation because it provides road maps for guiding, coordinating and controlling the firm's actions to achieve its objectives. 20\. Stocks a security that signifies ownership in a corporation and represents a claim on a part of the corporation's assets and earnings. **Personal Financial Planning Process** **TRUE OR FALSE** 1.A high accounts receivable turnover ratio means not efficient management of receivables. 2\. By having more debt than equity, businesses save on taxes as interest expense decreases income tax due 3\. The Mission statement state where the company wants to be. 4\. Operation cost are a mix of variable cost and fixed cost. 5\. Vertical Analysis for statement of Profit and Loss or Income Statement, all accounts are presented as a percentage of Sales or Net sales. 6\. Using Working capital is important because failure to do so may result in the closure of business. 7\. Gross profit margin is can be less than or greater than net profit margin. 8\. Safety cushion is when company has excess cash, it can invest that money and earn a return. 9\. ROE measures the amount of operating income earned in relation to stockholders' equity. 10\. If the company invest cash on short term investments, the company has no opportunity to earn profits.