SOUTHERN LUZON TECHNOLOGICAL COLLEGE FOUNDATION INC.

COLLEGE OF BUSINESS ADMINSITRATION

BASIC FINANCE
Midterm Examination
2017 -2018

Name: ____________________________________
Course: ___________________________________

GENERAL RULE: Strictly NO ERASURES, ALTERATIONS and WRONG SPELLING

WRONG

Identification: Fill out the blank provided in each item with your answer.

1. A financial market in which newly issued primary and secondary securities are traded for
the first time. ___________________________
2. Is the financial market where the common and preferred stocks issued by the corporations
are traded._____________________________
3. Is the financial market on which debt securities with an original maturity of one year or
less are traded. __________________________
4. The one where trading is conducted by an independent third party according to a matching
of prices on orders to buy and sell a particular security. _______________________
5. The report sent out each year by the company to its stockholders or members.
_____________________
6. It is also called as the SNAP SHOT of the financial Status of the company.
_______________________
7. It shows everything that the firm owns and which has monetary value.
_______________________
8. It shows the interest of the owner or owners in the company. _______________________
9. This items also represents long-term debts and is usually secured by land, buildings, or
equipment. ________________________
10. This refers to the monetary values of the goods and services used in the production and
delivery process in order to obtain revenues. __________________________

Explain: Explain and just dont define the following terms. 5 pts. Each

1. Indirect Finance
________________________________________________________________________
________________________________________________________________________
2. Direct Finance
________________________________________________________________________
________________________________________________________________________
3. Financial Statement
________________________________________________________________________
________________________________________________________________________
4. Financial Markets
________________________________________________________________________
________________________________________________________________________
5. Brokers
________________________________________________________________________
________________________________________________________________________

Enumeration: Use the back part for this item.

1. 5 Classification of Financial Market 3. 4 Parts of Income Statement
2. 3 Parts of Balance Sheet 4. 3 Methods of Direct financing