Finance 44 - Property Plant and Equipment

Questionnaire for FINANCE 44

(03:00 – 04:30 TTH)

PROPERTY PLANT AND EQUIPMENT

1. These are critical to the long-term financial health of any company operating in the private enterprise system.

1. Capital Expenditure Planning and Control
2. Investment in Capital Assets
3. Assets, Liabilities and Equity
4. Expenditures for Fixed Assets

1. The ______________ financial knowledge is needed to evaluate the capital assets requirements that are generated by the first-level management.

1. Accountant
2. Controller
3. Sales Manager
4. Accounting Manager

1. These are the controller’s tasks in relation to property, plant and equipment EXCEPT:

1. Establish a procedure for the planning and control of fixed assets
2. Establish hurdle rates on the types of fixed assets under consideration
3. Establish controls for the management in handling personnel
4. Review all requests for capital expenditures to verify the probable rate of return

1. The controller’s tasks and obligations in terms to property, plant and equipment EXCEPT:

1. Establish controls to ensure that capital expenditures are kept within authorized limits
2. Review economic alternatives to asset purchases
3. Establish a reporting system that informs managers about equipment’s maintenance costs, idle time, productivity and actual costs versus budget
4. Unmaintained property records that identify all assets, describe their locations, track transfers and sales, and account for depreciation

1. For the planning period of the short-term budget, determine a permissible range for capital commitments for the company as a whole and for each major division. This range tells management how much can be spent in the period.

1. True
2. False
3. Maybe
4. GEGE na dis

1. The next step after the Preliminary Screening is the Review for the Project Proposals.

1. True
2. False
3. Maybe
4. GG dis

1. The company’s top management will set a capital budget amount based on these factors EXCEPT:

1. Estimated internal cash generation
2. Availability and cost of external funds
3. Current structure of mason jars and anticipated inflation rates
4. Short and medium-term growth prospects of the company and the industry

1. A method that calculated the time period needed to pay back a project’s original investment from the project’s cash flows.

1. Payback Method
2. Accountant’s Method
3. Discounted Cash Flow Method
4. For Method

1. This is a technique compares earnings to the average outstanding investment rather than the initial investment or assets employed which is based on the underlying premise that capital recovered as depreciation is available for the use in other projects and should not be considered a charge against the original project.

1. Payback Method
2. Accountant’s Method
3. Discounted Cash Flow Method
4. Keeps Method

1. A technique takes cash flow timing into account, it has been adopted as an effective tool in ranking and judging the profitability of the investments

1. Payback Method
2. Accountant’s Method
3. Discounted Cash Flow Method
4. Forever Method

1. A method that involves the determination of that rate of return at which the sum of the stream of after-tax cash earnings, discounted yearly according to current worth, equals the cost of the project.

1. Discounted Cash Flow Method
2. Internal Rate of Return (IRR) Method
3. Net Present Value (NPV) Method
4. PacienciaYncierto Cuevas (PYC) Method

1. A method that uses a preselected rate – the rate that the company considers the minimum rate of return for taking the risk of the capital investment.

1. Discounted Cash Flow Method
2. Internal Rate of Return (IRR) Method
3. Net Present Value (NPV) Method
4. ValenciaPorlasPosas (VPP) Method

1. The minimum rate of return that a capital project should earn if it is to be judged acceptable.

1. Hurdle Rate
2. Discount Rate
3. Interest Rate
4. Lopez Rate

1. A mathematical technique wherein changes may be made in any of the input factors and the consequent movement in the result observed.

1. Project Risk Analysis
2. Sensitivity Analysis
3. Investment Analysis
4. Fixed Heart Analysis

1. The controller should inform management about losses from the ___________ and place responsibility in an attempt to eliminate the avoidable and unnecessary costs.

1. Idle Feelings
2. Working Capital
3. Lease
4. Idle Equipment

Chapter 15

 1.These are the three guidance in arriving a decision to what debt level is optimal except

1. Institutional lenders
2. Action of competitors
3. Analysis of past practice
4. None of the above

2. The 2 types of standard are

        a.     Capitalization standard

        b.     Earnings coverage standard

        c.      both A & B

        d.      none of the above

3.  also known as trading on the equity

        a. Levarage

        b. Asset

        c. Liability

        d. owners equity

1. The best quality; smallest degree of investment risk

1. AAA
2. A
3. AA
4. BAA

1. Higher medium-grade obligations, with some elements that maybe present to suggest a susceptibility to impairment at some time in the future

1. BAA
2. AAA
3. AA
4. A

1. It is considered a lower medium grade that lacks outstanding

1. AA
2. AAA
3. BAA
4. A

7. It is a Liability Objective to maintain a sound financial structure of debt in proportion to equity through effective planning and control

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