1.

It is a series of equal payments occurring at equal intervals of time where the first payment is made
after several periods, after the beginning of the payment. How do you call this payment?
a) Deferred annuity b) Delayed annuity
c) Progressive annuity
d) Simple annuity
A
2. How do you call a market whereby there is only one buyer of an item for which there are no goods
substitutes?
a) Monopoly
b) Monopsony
c) Oligopoly
d) Oligopsony
B
3. This is the amount of a property in which a willing buyer will pay to a willing seller for the property
when neither one is under the compulsion to buy or sell. What do you call this value?
a) Fair value
b) Goodwill value
c) Book value
d) Market value
D
4. This type of annuity has the payments made at the start of its period, beginning from the first period.
How do you call this annuity?
a) Ordinary annuity
b) Annuity due
c) Deferred annuity
d) Perpetuity
B
5. How do you call 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 the depreciation applies?
a) Straight line method
b) Sinking fund method
c) SYD method
d) Declining balance method
D
6. This is the cumulative effect of elapsed time on the money value of an event, based on the earning
power of equivalent invested funds capital should or will earn. What is this?
a) Present worth factor
b) Interest factor
c) Time value of money
d) Yield
D
7. Which of the following business organization has the disadvantage of double taxation?
a) Sole proprietorship
b) Partnership
c) Corporation
d) Enterprise
C
8. This is the function of interest rate and time that determines the cumulative amount of a sinking fund
resulting from specific periodic deposits. How do you call this?
a) Sinking fund factor
b) Present worth factor
c) Capacity factor
d) Demand factor
A
9. This is the intangible item of value which is the exclusive right of a company to provide a specific
product or service in a stated region of the country. What is this?
a) Market value
b) Book value
c) Goodwill value
d)
Franchise
value
D
10. Which of the following items included as in the first cost of any property?
a) The original
b) Installation expense purchase price and freight and
transportation charges
c) Initial taxes
d) Both a, b, & c
D
11. Defined as the future value minus the present value.
a) Interest
b) Rate of return
c) Discount
d) Capital
A
12. How do you call this type of annuity where the payments are made at the end of each payment period
starting from the first period?
a) Ordinary annuity b) Annuity due
c) Deferred annuity
d) Perpetuity
A
13. The capitalized cost of any structure or property is equal to which of the following?

a) First cost + interest

c) First cost + cost of perpetual maintenance

b) Annual cost of the first cost

d) First cost + salvage value

C
14. How do you call the flow back of profit plus depreciation from a given project?
a) Capital recovery b) Cash flow
c) Economic return
d) Earning value
A
15. What is the profit derived from a project or business enterprise without consideration of obligations to
financial contributors or claims of other based on profit?
a) Economic return b) Yield
c) Earning value
d) Expected yield
A
16. This is a mathematical expression also known as the present value of an annuity. What is this factor?
a) Sinking fund factor
b) Capacity factor
c) Demand factor
d)
Present
worth factor
D
17. How do you call the payment for the use of borrowed money?
a) Loan
b) Maturity value
c) Interest
d) Principal
C
18. This is an interest rate at which the present worth of the cash flow on a project is zero of the interest
earned by an investment. What is this interest rate commonly called?
a) Effective rate
b) Nominal rate c) Rate of return
d) Yield
B
19. As applied to the capitalized asset, this is a distribution of the initial cost by periodic changes to
operation as in depreciation or the reduction of the debt by either periodic or irregular prearranged
program. How do you call this?
a) Annuity
b) Capital recovery
c) Annuity factor
d) Amortization
D
20. This is the lessening of the value of an asset due to the decrease in the quantity available (referring to
the natural resources, coal, etc.). How do you call this?
a) Depreciation
b) Depletion
c) Inflation
d) Incremental
cost
B