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Engg.
Economics

A type of bond issued jointly by two or more


corporations.
A. Joint bond
B. Debenture bond
C. Registered bond
D. Collateral trust bond

A type of bond whose guaranty is in lien on


railroads equipments.
A. Equipment obligation bond
B. Debenture bond
C. Registered bond
D. Insfrastructure bond

If the security of the bond is a mortgage on


certain specified asset of a corporation, this bond
is classified as
A. Registered bond
B. Mortgage
bond
C. Coupon bond
D. Joint bond

A type of bond where the corporations owners


name are recorded and the interest is paid
periodically to the owners with their asking for it.
A. Registered bond
B. Preferred bond
C. Incorporators bond
D. All of these

Bond to which are attached coupons indicating


the interest due and the date when such interest
is
be paid. bond
A. to
Registered
B. Coupon bond
C. Mortgage bond
D. Collateral trust bond

An amount of money invested at 12% interest


per annum will double in approximately
A. 4 years
B. 5 years
C. 6 years
D. 7 years

An increase in the value of a capital asset is


called
A. profit
B. capital gain
C. capital expenditure
D. capital stock

The reduction in the money value of a capital


asset
is called
A.
Capital
expenditure
B. Capital loss
C. loss
D. deficit

It is negotiable claim issued by bank in lieu of a


team deposit.
A. Time deposit
B. Bond
C. Capital gain
D. Certificate of deposit

Any particular raw materials or primary product


(e.g. cloth, wool, flour, coffee..) is called
A. Utility
B. Necessity
C. Commodity
D. Stock

The simplest economic order quantity (EOQ)


model is based on which of the following
assumptions.
A. Shortages are not allowed
B. Demand is constant with respect to time
C. Reordering is instantaneous. The time between
order placement and receipt is zero.
D. All of the choices

It denotes the fall in the exchange rate of one


currency in terms of others. The term usually
applies to floating exchange rates.
A. Currency appreciation
B. Currency devaluation
C. Currency float
D. Currency depreciation

The deliberate lowering of the price of a nations


currency in terms of the accepted standard
(Gold, American dollar or the British pound).
A. Currency appreciation
B. Currency float
C. Currency devaluation
D. Currency depreciation

The quantity of a certain commodity that is


bought at a certain price at a given time and
place.
A. Demand
B. supply
C. market
D. Utility

When free competition exists, the price of a


product will be that value where supply is equal
to
the demand
A. Law
of diminishing return
B. Law of supply
C. Law of demand
D. Law of supply and demand

When one of the factors of production is fixed in


quantity or is difficult to increase, increasing the
others factors of production will result in a less
than proportionate increase in output.
A. Law of diminishing return
B. Law of supply
C. Law of demand
D. Law of supply and demand

An accounting term that represents an inventory


account adjustments.
A. Cost of goods sold
B. Variance
C. Overhead
D. Payback

Indicate the CORRECT statement about


depreciation.
A. The depreciation is not the same each year
in straight line method.
B. The declining balance method can be used
even if the salvage calue is zero.
C. The sum-of-years digit method (SYD), the
digits 1 to (n + 1) is summed.
D. Double declining balance depreciation is
independent of the salvage value.

An artificial deductible operating expense


designated to compensate mining
organizations for decreasing mineral reserves.
A. Deflation
B. Reflation
C. Depletion
D. Inflation

The change in cost per unit variable change is


known as
A. Sunk cost
B. Incremental cost
C. Fixed cost
D. Semi-variable cost

What type of cost increases step-wise?


A. Supervision cost
B. Direct labor cost
C. Semi-variable cost
D. Operating and maintenance cost

Which of the following is NOT a variable cost?


A. Cost of miscellaneous supplies
B. Income taxes
C. Payroll benefit costs
D. Insurance costs

Which of the following is Not a fixed cost?


A. Rent
B. Janitorial service expenses
C. Supervision costs
D. Depreciation expenses

All are administrative expenses EXCEPT:


A. Marketing
B. Accounting
C. Data processing
D. Office supplies

One of the following is NOT a selling or


marketing expense. Which one?
A. Advertising
B. Commission
C. Insurance
D. Transportation

Research and development expenses includes


all EXCEPT one. Which one?
A. Testing
B. Drafting
C. Prototype
D. Laboratory

Which is not a factory overhead expense?


A. Pension, medical, vacation benefits
B. Expediting
C. Quality control and inspection
D. Testing

Bookkeeping consists of two steps, namely


recording the transactions and categorization of
transactions. Where are the transactions
(receipts and disbursements? Recorded?
A. Journal
B. Ledger
C. Columnar
D. Statement of account

The following are ledger accounts EXCEPT:


A. Asset accounts
B. Bank accounts
C. Liability accounts
D. Owners equity accounts

The ratio of the net income to the owners


equity is known as
A. Price-earning ratio
B. Profit margin ratio
C. Return of investment
D. Gross margin

Payback period is the ratio of


A. Initial investment to net annual profit
B. Cost of goods sold to average
Cost of inventory on hand
C. gross profit to net sales
D. net income before taxes to net sales

A secondary book of accounts the information


of which is obtained from the journal
A. Balance sheet
B. Ledger
C. Worksheet
D. Trial balance

The present worth of cost associated with an


asset for an infinite period of time is referred to
as
A. Annual cost
B. Capitalized cost
C. Increment cost
D. Operating cost

A stock of a product which is held by a trade


body or government as a means of regulating
the price of that product.
A. Stock pile
B. Hoard stock
C. Buffer stock
D. Withheld stock

A negotiable claim issued by a bank in lieu of a


term deposit is called
A. Cheque
B. T-bills
C. Currency
D. Certificate of deposit

In counting the number of days when


computing simple interest,
A. The first day is included
B. The last day is excluded
C. The first day is included and the last day
is
D. excluded
The first day is excluded and the last day
is included

In the so-called Bankers Rule,


A. The number of days in 1 year is 360 days
B. The number of days in 1 year is 365 days
C. The number of days in each month is 30
days
D.
The number of days in 1 year is 366 days

To discount an amount F for n conversion


periods means
A. to find the present value on a day which
is n periods after F is due
B. To find the present value on a day which
is n periods before F is due
C. To find the present value on a day which is
(n-1) periods before F is due
D. To find the present value on a day which is
(n+1) periods before F is due

In the formula for compound interest, F= P


(1+i)n, the value (1+i)n is called ____.
A. Discount factor
B. Interest factor
C. Accumulation factor
D. Increase factor

To find the present worth of a future amount in


compound interest, we use the formula
P=F(1+i)-n. What do you call the factor (1+i)n?
A. Discount
B. Accumulation factor
C. Interest factor
D. Reduction factor

What do you call a fund, usually by periodic


deposits, to insure the accumulation of money
to provide for possible large payments?
A. Escrow fund
B. Sinking fund
C. Mutual fund
D. Corporate fund

What is the term for the borrowed principal


usually mentioned in a typical bond?
A. Bond rate
B. Face value
C. Coupon rate
D. Coupon value

Any date on which a coupon of a bond becomes


due will be referred to as a _____.
A. Maturity date
B. Term of the bond
C. Coupon
D.
Due date
date

If P is the price of a bond and V is its


redemption value, what do you call the value PV?
A. Par value
B. Face value
C. Premium
D. Bond discount

When can we say that the bond is purchased at


a discount?
A. When the price of the bond is greater than
the redemption value
B. When the price of the bond is less than the
redemption value.
C. When the price of the bond is equal than
the redemption value.
D. When the price of the bond is either equal
to or greater than the redemption value.

The yield of a bond is obtained by which of the


following formulas:
A. Average investment__
Average annual interest
B. Average annual interest_
Average investment
C. Par value_
Flat value
D. Par value_
Flat value

What is a bond whose face value is redeemable


in installments, with interest payable
periodically as due on outstanding principal?
A. Annuity bond
B. Serial
bond
C. Treasury bond
D. Government bond

What is the term for the sum of depreciation


charges to date?
A. Accrued depreciation
B. Applied depreciation
C. Accumulated depreciation
D. All of the above

The difference between the value of an asset


and its salvage or scrap value at the end of the
year
is called ____.
A.
Depreciation
B. Accrued value
C. Book value
D. Wearing
value

What is a life annuity?


A. A sequence of payment for a certain
person which stops when person dies.
B. A sequence of payment intended for a life
insurance of a person.
C. A sequence of payment for a certain
person which continues indefinitely.
D. It is the same as perpetuity.

The percentage of each peso of sales that is


net income is called ______.
A. Price-earning ratio
B. Profit margin
C. Profit margin ratio
D. Return of investment ratio

Which one represents that price-earnings ratio?


A. Market price per share_
Earnings per share
B. Earnings per share___
Market price per share
C.
Net credit sales__
Average net receivables
D.
Gross profit_____
Current liabilities

The book value per share of common stock is


the ratio of the common shareholders equity to
______.
A. Average shared
B. Number of outstanding shares
C. Total subscribed shared
D. Authorized capital stock

What refers to the price at which the quantity


demanded of a good is exactly equal to the
quantity supplied
A. Equilibrium market price
B. Fair market price
C. Real market price
D. Exact market price

A principle that states that consumers will tend to


spend an increasing proportion of any additional
income upon luxury goods and a smaller
proportional on staple goods, so that a rise in
income will lower the overall share of consumer
expenditures spent on stable goods (such as
basic foodstuffs)and increase the share of
consumer expenditures on luxury goods (such as
A. Placibo effect
motor cars).
B. Luxury effect
C. Engels law
D. Staple law

What refers to a market for buying and selling


of raw materials such as tea, coffee, iron ore,
A.
Commodity market
etc.?
B. Raw market
C. Natural market
D. National market

The paper currency issued by the central bank


which forms the part of the countrys money
A.
T-bills
supply
B. Bank note
C. Check
D. Coupon

Reduction in the national income and output


usually accompanied by the fall in the general
proce level
A. Devaluation
B. Deflation
C. inflation
D. Depreciation

It is a series of equal payment occurring at


equal interval of time
A. Annuity
B. Debt
C. Amortization
D. Deposit

The place and buyers come together


A. Market
B. Business
C. Recreational center
D. Buy and sell of section

A market where by there is only one buyer of


an item for which there are no good substitute
A. Monopsony
B. Oligopoly
C. Monopoly
D. Oligopsony

Estimate value at the end of the useful life.


A. Market value
B. Fair value
C. Salvage value
D. Book value

Consists of the actual counting or


determinination of the actual quantity of the
materials on hand as of a given date.
A. Physical inventory
B. Material update
C. Technological assessment
D. Material count

Additional information of prospective bidders on


contract documents issued prior to bidding
date.
A. Delict
B. Escalatory
C. Technological assessment
D. Bid bulletin

A series of uniform accounts over an infinite


period of time.
A.
B.
Annuity
Depreciation
C. Perpetuity
D. Setting

The quantity of a certain commodity that is


offered for sale at a certain price at a given
place
and time
A.
Demand
B. Supply
C. Stocks
D. Goods

Work-in process is classified as


A. An assets
B. A liability
C. An
D.
An owners equity
expenses

It is the amount which a willing buyer will pay


to a willing seller or a property where each has
equal advantage and is under no compulsion to
buy
or sell.
A. Fair
value
B. Market value
C. Book
D.
Salvage value
value


This occurs in a situation where a commodity or
service is supplied by a number of vendors and
there is nothing to prevent additional vendors
entering
market.
A.
Perfectthe
competition
B. Oligopoly
C. Monopoly
D. Elastic demand

These are product or service that are desired


by human and will be purchased if money is a
available after the required necessities have
been
obtained
A. Utilities
B. Necessities
C. Luxuries
D. Product goods and service


These are product or services that are required
to support human life ad activities that will be
purchased in somewhat the same quantity
even though the price varies considerably.
A. Utilities
B. Necessities
C. Luxuries
D. Product goods and services

A condition where only few individuals produce


a certain product and that any action of one will
lead to almost the same action of the others.
A. Oligopoly
B. Semi-monopoly
C. Monopoly
D. Perfect competition

The present worth of all depreciation over the


economic life of the item is called
A. Book value
B. Capital recovery
C. Depreciation recovery
D. Sinking fund

Gross profit, sales less cost of goods sold, as a


percentage of sales is called
A. Profit margin
B. Gross margin
C. Net income
D. Rate of return

Worth of the property as shown in the


accounting records of an enterprise.
A. Fair value
B. Market value
C. Salvage value
D. Book value

Those funds that are required to make the


enterprise or project a going concern.
A. Initial investment
B. Current accounts
C. Working capital
D. Subscribed capital

A market situation where there are one seller


and many buyers.
A. Monopoly
B. Monopsony
C. Oligopoly
D. Oligopsony

A market situation where there are few sellers


and few buyers.
A. Oligopoly
B. Oligopsony
C. Bilateral oligopoly
D. Bilateral oligopsony

The payment for the use of borrowed money is


called
A. Loan
B. Maturity value
C. Interest
D. Principal

The interest rate at which the present work of


the cash flow on a project is zero of the interest
earned by an investment.
A. Effective rate
B. Nominal rate
C. Rate of return
D. Yield

The ratio of the interest payment to the


principal for a given unit of time and usually
expressed as a percentage of the principal.
A. Interest
B. Interest rate
C. Investment
D. All of the above

The true value of interest rate computed by


equations for compound interest for a 1 year
period is known as
A. Expected return
B. Interest
C. Nominal interest
D. Effective interest

The intangible item of value from the exclusive


right of a company to provide a specific product
or service in a stated region of the country.
A. Market value
B. Book value
C. Goodwill value
D. Franchise value

The recorded current value of an asset is known


as Scrap
A.
B.
Salvage value
value
C. Book value
D. Present worth

A type of annuity where the payments are


made at the start of each period from the first
period.
A. Ordinary annuity
B. Annuity due
C. Deferred annuity
D. Perpetuity

Which is not an essential element of an


ordinary
annuity?
A.
The amounts
of all payments are equal.
B. The payments are made at equal interval of
time
C. The first payment is made at the
beginning of each period
D. Compound interest is paid on all amounts
in the annuity

A is a periodic payment and I is the interest


rate, then present worth of a perpetuity =
A. Ai
B. Ai^n
C. A^n/ i
D. A/i

A mathematical expression also known as the


present value of one is called
A. Load factor
B. Demand facetor
C. Sinking fund
D.
Present worth factor
factor

As applied to a capitalized asset, the


distribution of the initial cost by a periodic
changes to operation as in depreciation or
reduction of a debt by either periodic or
irregular prearranged program is called
A. Annuity
B. Capital recovery
C. Annuity
factor
D. Amortization

The function of interest rate and time


determines the cumulative amount of a sinking
fund resulting from specific deposits.
A. Sinking fund factor
B. Present worth factor
C. Capacity
D. Demand factor

The first cost of any property includes


A. The original purchase price and freight
and transportation charges
B. Installation expenses
C. Initial taxes and permits fee
D. All of the above

In SYD method, the sum of years digit is


calculated using which formua with n= number
of useful years of the equipment.
A. n(n-1)/2
B. n(n+1)/2
C. n(n+1)
D. n(n-1)

capitalized cost of any property is equal to the


A. annual cost
B. first cost + cost of perpetual cost
C. first cost + cost of perpetual maintenance
D. first cost + salvage value

the lessening of the value of an asset due to


the decrease in the quantity available
( referring to the natural resources, coal, oil,
A.
depreciation
etc)
B. depletion
C. inflation
D. incremental cost

is the simplest form of business organization


A. sole propeitorship
B. partnership
C. partnership
D. corporation

In case of bankruptcy of a partnership


A. The partners are not liable for the liabilities
of the partnership.
B. The partnership assets (excluding the
partner personal assets) only will be used to
pay
thepartners
liabilities.
C. The
personal assets are attached
to the debt of the partnership
D. The partners may sell stock to generate
additional capital.

Which is TRUE about partnership?


A. It has a perpetual life.
B. It will be desolved if one of the partners
ceases to be connected with the partnership
C. It can be handed down from one generation
of partners to another.
D. Its capitalization must be equal for each
partner.

Which is TRUE about corporation?


A. It is the not best form of business
organization
B. The minimum number of incorporators to
start a corporation is there.
C. Its life is dependent on the lives of the
incorporators.
D. The stockholders of the corporation are only
liable to the extent of their investments.

Represent ownership, and enjoys certain


preference than ordinary stock.
A. Authorized capital stock
B. Preferred stock
C. Common stock
D. Incorporators stock

Represent the ownership of stockholders who


have a residual claim on the assets of the
corporation after all other claims have been
A. Authorized capital
settled.
B. Preferred stock
C. Incorporators stock
D. Common stock

The 72 rule is used to determine


A. How many years money will triple
B. How many years money will double
C. How many years to amass 1 million
D. How many years to quadruple the money

To triple the principal one must use


A. Integration
B. Derivatives
C. Logarithms
D. Implicit functions

A currency traded in a foreign exchange market


to which the demand is consistently high in
relation to its supply.
A. Money market
B. Hard currency
C. Treasury bill
D. Certificated of deposit

Everything a company owns to which has a


money value is classified as an asset. Which of
the following is classified as an asset?
A. Intangible asset
B. Fixed asset
C. Trade investments
D. All of these

Which of the example of an intangible asset?


A. Cash
B. Investment in subsidiary companies
C. Furnitures
D. Patents

Land buildings, plants and machinery are


examples
A.
Current of
assets
B. Trade investments
C. Fixed assets
D. Intangible assets

The residual value of a companys assets after


all outside liabilities (shareholders excluded)m
have
been allowed for.
A. Divided
B. Equity
C. Return
D. Par value

A saving which takes place because good are


not available for consumption rather than the
consumer really want to save.
A. Compulsory saving
B. Consumer saving
C. Forced saving
D. All of these

A document that shows proof of legal


ownership of a financial security.
A. Bond
B. Bank note
C. Coupon
D. Check

Defined as the capacity of commodity to satisfy


human want.
A. Discount
B. Necessity
C. Luxuries
D. Utility

It is the profit obtained by selling stocks at a


higher price than its original purchase price.
A. Debenture
B. Goodwill
C. Capital gain
D. Internal rate of return

The quantity of a certain commodity that is


offered for sale at a certain price at a given
time
and place.
A. Demand
B. Supply
C. Utility
D. Market

In economics, a short term transaction


usually has a lifetime of
A. 3 months or less
B. 1 year or less
C. 5 years or less
D. 10 years or less

In the cash flow, expenses incurred before time


= 0 is called
A. Receipts
B. Disbursement
C. Sunk costs
D. Firsts costs

An imaginary cost representing what will not be


received if a particular strategy is rejected.
A. Sunk cost
B. Opportunity
C.
Replacement cost
cost
D. Initial cost

In replacement studies, the existing process or


piece of equipment is known as
A. Challenger
B. Defender
C. Liability
D. Asset

In replacement studies, the new process or


piece of equipment being considered for
purchase is known as.
A. Challenger
B. Defender
C. Asset
D. Liability

_______ means that the cost of the asset is


divided into equal or unequal parts, and only
one of these parts is taken as an expense each
year.
A. Capitalizing the asset
B. Expensing the asset
C. Depreciating the asset
D. Artificial expenses

The annual costs that are incurred due to the


functioning of a piece of equipment is known as
A. General, selling and administrative
B.
Prime cost
expenses
C. Operating and maintenance costs
D. Total cost

The sum of the direct labor cost and the direct


material cost is known as
A. Prime cost
B. Total cost
C. Indirect manufacturing expenses
D. Total cost

Research and development costs and


administrative expenses are added to the
factory cost to give the _______ of the product.
A. Total cost
B. Marketing cost
C. Manufacturing cost
D. Prime cost

The sum of the prime cost and the indirect


manufacturing cost is known as
A. Factory cost
B. Research and development cost
C. Manufacturing cost
D. Total cost

The manufacturing cost plus selling expenses


equals
A. Total cost
B. Indirect production cost
C. Administrative cost
D. Miscellaneous cost

Which of the following is NOT a direct labor


expense?
A. Inspection
B. Testing
C.
D.
Assembly
Supervision

The journal and the ledger together are known


simply as _____ of the company.
A. Accounting system
B. The books
C. Bookkeeping system
D. Balance sheet

The basic accounting equation is


A. Assets = Liability + Owners equity
B. Liability = Assets + Owners equity
C. Owners equity = Assets + Liability
D. Owners equity = Liability
Assets

The ability to convert assets to cash quickly is


known as
A. Solvency
B. Liquidity
C. Leverage
D. Insolvency

The ability to meet debts as they become due


is known as
A. Solvency
B. Leverage
C. Insolvency
D. Liquidity

What is considered as an index of short-term


paying ability?
A. Current ratio
B. Acid test ratio
C. Gross margin
D. Return of investment

An acid test ratio is a ratio of


A. Gross profit to net salesrant
B. Net income before taxes to net sales
C. Quick assets to current
D.
Net income to owners liabilities
liabilities

A form of business firm which is owned and run


by a group of individuals for their mutual
benefit
A. Cooperative
B. Corporation
C. Enterprise
D. Partnership

A document which shows the legal ownership


of financial security and entitled to payments
thereon.
A. Coupon
B. Contract
C.
D.
Consol
Bond

A government bond which have an indefinite


life rather than a specific maturity
A.
B.
T-bill
Coupon
C. Debenture
D. Consol

Refers to the orders quantity that minimizes the


inventory cost per unit time.
A. Economic order quantity
B. Social order quantity
C. Public order quantity
D. Private order quantity

What is referred to as an individual who


organizes factors of production to undertake a
venture
A. Agentwith a view to profit?
B. Entrepreneur
C. Salesman
D. Commissioners

The money that is inactive and does not


contribute to productive effort in an economy is
known
as
A. Idle money
B. Hard money
C. Soft currency
D. Frozen asset

What refers to an equation stating that the sum


of the values, on a certain comparison date, of
one set of obligations is equal to the sum of the
value of another set of this date?
A. Equality of value
B. Equation of value
C. Equality equation
D. Similarity equation

What is an annuity whose payments extend


over a period of time whose length cannot be
A.
Annuity
certain
foretold
accurately?
B. Annuity uncertain
C. Incremental annuity
D. Contingent annuity

What do you call the time between successive


payment dates of an annuity?
A. Period interval
B. Annuity period
C. Payment interval
D. Annuity term

The time from the beginning of the first


payment interval to the need of the last one is
called the _____ of the annuity.
A. Period
B.
Term
C.
Nature
D. Type

What refers to the extinction of the debt by any


satisfactory set of payments?
A. Liquidation
B. Liability discharge
C. Discharging debt
D. Amortization of debt

When can we say that the bond is purchased at


a premium?
A. When the price of the bond is greater
than the redemption value.
B. When the price of the bond is less than
the redemption value.
C. When the price of the bond is equal than the
redemption value.
D. When the price of the bond is either equal
to or greater than the redemption value.

Which of the following will happen if bond is


bought at a discount?
A. Each coupon payment is too small to pay
all interest due on the investors principal.
B. Each coupon payment is greater than the
interest due on the investors principal.
C. The unpaid interest on each coupon date
will not be considered as a new investment
in
D. the
Thebond.
difference between the coupon
payment and the interest due is a partial
repayment of principal.

In the sale of a bond, the actual purchase price


on any day is called ____.
A. Face value
B. Quoted price
C. Accrued price
D. Flat price

What do you call the difference between the


flat price of the bond and the quoted price of
the bond?
A. Par value
B. Accrued interest
C. Bond rate
D. And-interest price

The quoted price of a bond is sometimes called


_______.
A. Par value
B. Face value
C. An-interest price
D. Coupon price

What term is usually used by the banks to


represent the effective interest rate per period?
A. Yield
B. Nominal rate
C. Fixed rate
D. Net rate

The acid test ratio is also known as quick ratio.


Which one represents the quick ratio?
A.

Quick assets_____
Current liabilities
B.
Net credit sales___
Average net receivables
C. Gross profit____
Current liabilities
D. Gross profit__
Net sales

Which of the following represents the gross


margin?
A.
Net income__
Owners equity
B.
Net credit sales___
Average net receivables
C. Gross profit____
Current liabilities
D. Gross profit__
Net sales

A receivable turnover is calculated using which


of the following formulas?
A.

Net income__
Owners equity
B.
Net credit sales___
Average net receivables
C. Gross profit____
Current liabilities
D. Gross profit__
Net sales

What is the disciple within economics that


attempts to measure and estimate statistically
the relationship between two or more economic
variables?
A. Theory of values
B. Econometrics
C. Economatics
D. Econoscience

What refers to the fall in the general price level,


frequently accompanied by a reduction in the
level of national income?
A. Inflationary
B.
Dissavings
gap
C. Disinflation
D. Inflation

A price for a product just covers its production


and distribution costs with no profit margin
added.
A. Cost price
B. Actual price
C. Real price
D. Original price

A market where new entrants face cost similar


to those of established firms and where, on
leaving, firms are able to recoup their capital
costs, less depreciation.
A. Free market
B. Competitive market
C. Limited market
D. Contestable market

What refers to a temporary grouping of


independent firms, organization and
governments, brought together to pool their
resources and skills in order to undertake a
particular project?
A. Consortium
B. Cartel
C. Cooperative
D. Union

It is a series of equal payment occurring at


equal interval of time where the first paymenyt
is made after several periods, after the
beginning of the payment
A. Perpetuity
B. Ordinary Annuity
C. Annuity due
D. Deferred annuity

The total income equals the total operating


cost.
A. Balance sheet
B. In-place valuelly
C. Check and balance
D. Break even-no gain no loss

Kind of obligation which has no condition


attached.
A. Analytic
B. Pure
C. Gratuitous
D. Private

Direct labor costs incurred in the factory and


direct material costs are the costs of all
materials that go into production. The sum of
these
two direct
costs is known as
A. GS and
A expenses
B. Operating and maintenance costs
C. Prime cost
D. O and M costs

An index of short term paying ability is called


A. Receivable turn-over
B. Profit margin ratio
C. Current ratio
D. Acid-test ratio

An artificial expenses that spreads the


purchase price of an assets or another property
over a number of years.
A. Depreciation
B. Sinking Fund
C. Amnesty
D. Bond

What is the highest position in the corporation?


A. President
B. Board of directors
C. Chairman of the board
D. Stockholders

Type of ownership in business where individuals


exercise and enjoy the right in their own
interest.
A. Equitable
B. Public
C. Private
D. Pure

Decrease in the value of a physical property


due to the passage of time.
A. Inflation
B. Depletion
C. Recession
D. Depreciation

An association of two or more individuals for


the purpose of operating a business as coowners for profit.
A. Sole proprietorship
B. Company
C. Partnership
D. Corporation

We may classify an interest rate, which


specifies the actual rate of interest on the
principal for one year as
A. Nominal rate
B. Rate of return
C. Exact interest rate
D. Effective rate

It is defined to be the capacity of a commodity


to satisfy human want.
A. Discount
B. Luxury
C. Necessity
D. Utility

Grant total of the assets and operational


capability of a corporation.
A. Authorized capital
B. Investment
C. Subscribed capital
D. Money market

The worth of the property equals to the original


cost less depreciation.
A. Scrap value
B. Face value
C. Market value
D. Book value

Money paid for the use of borrowed capital.


A. Discount
B. Credit
C. Interest
D. Profit

Liquid assets such as cash and other assets that


can be converted quickly into cast such as
accounts receivable and merchandise are called
A. Total assets
B. Fixed assets
C. Current assets
D. none of these

The length of time which the property may be


operated at a profit.
A. physical
B.
lifeEconomic life
C. Operating life
D. All of the above

The provision in the contract that indicates the


possible adjustment of material cost and labor
cost.
A. Secondary clause
B. Esclatory clause
C. Contingency clause
D. Main clause

A market situation where there is one seller and


one buyer.
A. Monopoly
B. Monopsony
C. Bilateral monopoly
D. Bilateral monopsony

A market situation where there are only two


buyers with many sellers.
A. Duopoly
B. Oligopoly
C. Duopsony
D. Oligopsony

The cumulative effect of elapsed time on the


money value of an event, based on the earning
power of equivalent investment funds capital
should
or will
earn.
A.
Present
worth
factor
B. Interest rate
C. Time value of money
D. Yield

Defined as the future value minus the present


value.
A. Interest
B. Rate of return
C. Discount
D. Capital

The flow back of profit plus depreciation from a


given project is called.
A. Capital
B.
Cash flow
recovery
C. Economic flow
D. Earning value

The profit derived from a project or business


enterprise whithout consideration of obligations
to financial contribution or claims of other based
A.
life
on Economic
profit.
B. Yield
C. Earning value
D Expected yield

Scrap value of an asset is sometimes known as.


A. Book value
B. Salvage value
C. Replacement value
D. Future value

What is sometimes called second hand value?


A. Scrap value
B. Salvage value
C. Book value
D. Going value

An intangible value which is actually operating


concern has due to its operation.
A. Book value
B. Fair value
C. Goodwill value
D. Going value

The value which a disinterested third party,


different from the buyer and seller, will
determine in order to establish a price
acceptable
to both parties.
A. Market value
B. Good value
C. Fair value
D. Franchise value

A type annuity where the payments are made at


the end of each payment period starting from
theOrdinary
first period.
A.
B.
Annuity due
annuity
C. Deferred annuity
D. Perpetuity

It is a series of time where the first payment is


made after several periods, after the beginning
of
payment.
A. the
Deferred
annuity
B. Delayed annuity
C. Progressive annuity
D. Simple annuity

The reduction of the value of an asset due to


constant use and passage of time.
A. Scrap value
B. Depletion
C. Depreciation
D. Book value

A method of computing depreciation in which the


annual charge is a fixed percentage of the
depreciated book value at the beginning of the
year
to which
depreciation applies.
A. Straight
linethe
method
B. Sinking fund method
C. SYD method
D. Declining balance method

A method of depreciation whereby the amount to


recover is spread uniformly over the estimated
life of the asset in terms of the periods or units of
output.
A.
Straight line method
B. Sinking fund method
C. Declining balance method
D. SYD method

Which of the following depreciation methods


cannot have a salvage value of zero?
A. Declining balance method
B. Sinking fund method
C. Straight line method
D. SYD method

A method of depreciation where a fixed sum of


money is regularly deposited at compound
interest in a real or imaginary fund in order to
accumulate an amount equal to the total
depreciation of an asset at the end of the assets
estimated
A. Straight life.
line method
B. Sinking fund
method
C. Declining balance method
D. SYD method

an association of two or more person for a


purpose of engaging in a profitable business
A. sole proprietorship
B. enterprise
C.
partnership
D.
corporation

a distinct legal entity which can practically


transact any business transaction which a real
person could do.
A. Sole proprietorship
B. Enterprise
C. Partnership
D. Corporation

Double taxation is disadvatange of which


business organization
A. Sole
proprietorship
B. Partnership
C. Corporation
D. Enterprise

Which is NOT a type of business organization?


A. Sole proprietorship
B. Corporation
C. Enterprise
D. Partnership

What is the minimum number of incorporators in


order that a corporation be organized?
A. 3
B. 5
C.10
D. 7

The amount of companys profits that the board


of directors of the corporation decides to
distribute to ordinary shareholders.
A. Dividend
B. Return
C. Share stock
D. Par value

A certified of indebtness of a corporation usually


for a period not less than 10 years and
guaranteed by a mortgage on certain assets of
the corporation.
A. Bond
B. T-bill
C. Preferred
stock
D. Common stock

A form of fixed- interest security issued by


central or local governments, companies, banks
or other institutions. They are usually a form of
long-term security, buy may be irredeemable,
secured or unsecured.
A. Bonds
B. T-bills
C. Certificate of deposit
D. All of these

A type of bond where the corporation pledges


securities which it owns (i.e. stock, bonds of its
subsidiaries)
A. Mortgage bond
B. Register bond
C. Coupon Bond
D. Collateral trust bond

A type of bond which does not have security


except a promise to pay by the issuing
corporation.
A. Mortgage bond
B. Register bond
C. Collateral trust bond
D. Debenture bond

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