A type of bond issued jointly by two or more D.

Collateral trust bond

corporations.
Ans. B
A. Joint bond
An amount of money invested at 12% interest
B. Debenture bond per annum will double in approximately

C. Registered bond A. 4 years

D. Collateral trust bond B. 5 years

Ans. A C. 6 years

A type of bond whose guaranty is in lien on D. 7 years

railroads equipments.
Ans. C
A. Equipment obligation bond
The 72 rule is used to determine
B. Debenture bond
A. How many years money will triple
C. Registered bond
B. How many years money will double
D. Insfrastructure bond
C. How many years to amass 1 million
Ans. A
D. How many years to quadruple the money
If the security of the bond is a mortgage on
certain specified asset of a corporation, this Ans. B
bond is classified as
To triple the principal one must use
A. Registered bond
A. Integration
B. Mortgage bond
B. Derivatives
C. Coupon bond
C. Logarithms
D. Joint bond
D. Implicit functions
Ans. B
Ans. C
A type of bond where the corporation’s owners
name are recorded and the interest is paid A currency traded in a foreign exchange market
periodically to the owners with their asking to which the demand is consistently high in
for it. relation to its supply.

A. Registered bond A. Money market

B. Preferred bond B. Hard currency

C. Incorporators bond C. Treasury bill

D. All of these D. Certificated of deposit

Ans. A Ans. B

Bond to which are attached coupons indicating Everything a company owns to which has a money
the interest due and the date when such value is classified as an asset. Which of the
interest is to be paid. following is classified as an asset?

A. Registered bond A. Intangible asset

B. Coupon bond B. Fixed asset

C. Mortgage bond C. Trade investments

D. All of these
 Ans. D D. Certificate of deposit

Which of the example of an intangible asset? Ans. D

A. Cash Any particular raw materials or primary

product (e.g. cloth, wool, flour, coffee..)
B. Investment in subsidiary companies is called

C. Furnitures A. Utility

D. Patents B. Necessity

Ans. D C. Commodity

Land buildings, plants and machinery are D. Stock

examples of
Ans. C
A. Current assets
If denotes the fall in the exchange rate of
B. Trade investments one currency in terms of others. The term
usually applies to floating exchange rates.
C. Fixed assets
A. Currency appreciation
D. Intangible assets
B. Currency devaluation
Ans. C
C. Currency float

D. Currency depreciation

Ans. D
An increase in the value of a capital asset is
called The deliberate lowering of the price of a
nation’s currency in terms of the accepted
A. Profit standard (Gold, American dollar or the British
pound).
B. Capital gain
A. Currency appreciation
C. Capital expenditure
B. Currency float
D. Capital stock
C. Currency devaluation
Ans. B
D. Currency depreciation
The reduction in the money value of a capital
asset is called Ans. C

A. Capital expenditure The residual value of a company’s assets after

all outside liabilities (shareholders
B. Capital loss
excluded)m have been allowed for.
C. Loss
A. Divided
D. Deficit
B. Equity
Ans. B
C. Return
It is negotiable claim issued by bank in lieu
D. Par value
of a team deposit.
Ans. B
A. Time deposit
A saving which takes place because good are
B. Bond
not available for consumption rather than the
consumer really want to save.
C. Capital gain
 A. Compulsory saving The quantity of a certain commodity that is
bought at a certain price at a given time and
B. Consumer saving place.

C. Forced saving A. Demand

D. All of these B. supply

Ans. C C. market

A document that shows proof of legal ownership D. Utility

of a financial security.
Ans. A
A. Bond
“When free competition exists, the price of a
B. Bank note product will be that value where supply is
equal to the demand
C. Coupon
A. Law of diminishing return
D. Check
B. Law of supply
Ans. C
C. Law of demand
Defined as the capacity of commodity to
satisfy human want. D. Law of supply and demand

A. Discount Ans. D

B. Necessity “When one of the factors of production is

fixed in quantity or is difficult to increase,
C. Luxuries increasing the others factors of production
will result in a less than proportionate
D. Utility
increase in output.”
Ans. B
A. Law of diminishing return
It is the profit obtained by selling stocks at
B. Law of supply
a higher price than its original purchase
price. C. Law of demand

A. Debenture D. Law of supply and demand

B. Goodwill Ans. A

C. Capital gain An accounting term that represents an

inventory account adjustments.
D. Internal rate of return
A. Cost of goods sold
Ans. C
B. Variance
The quantity of a certain commodity that is
offered for sale at a certain price at a given C. Overhead
time and place.
D. Payback
A. Demand
Ans. A
B. Supply
The simplest economic order quantity (EOQ)
C. Utility model is based on which of the following
assumptions.
D. Market
A. Shortages are not allowed.
Ans. B
B. Demand is constant with respect to time.
 C. Reordering is instantaneous. The time In replacement studies, the new process or
between order placement and receipt is piece of equipment being considered for
zero. purchase is known as.

D. All of the choices A. Challenger

Ans. D B. Defender

C. Asset

D. Liability

In economics, a “short – term” transaction Ans. A

usually has a lifetime of
_______ means that the cost of the asset is
A. 3 months or less divided into equal or unequal parts, and only
one of these parts is taken as an expense each
B. 1 year or less year.

C. 5 years or less A. Capitalizing the asset

D. 10 years or less B. Expensing the asset

Ans. C C. Depreciating the asset

In the cash flow, expenses incurred before D. Artificial expense

time = 0 is called
Ans. A
A. Receipts
Indicate the CORRECT statement about
B. Disbursements depreciation.

C. Sunk costs A. The depreciation is not the same each

year in straight line method.
D. Firsts costs
B. The declining balance method can be
Ans. C used even if the salvage calue is zero.

An imaginary cost representing what will not
be received if a particular strategy is
rejected.
A. Sunk cost
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.

B. Opportunity cost Ans. D

C. Replacement cost An artificial deductible operating expense

designated to compensate mining organizations
D. Initial cost
for decreasing mineral reserves.
Ans. B
A. Deflation
In replacement studies, the existing process
B. Reflation
or piece of equipment is known as
C. Depletion
A. Challenger
D. Inflation
B. Defender
Ans. C
C. Liability
The change in cost per unit variable change is
D. Asset
known as
Ans. B
A. Sunk cost
 B. Incremental cost B. Total cost

C. Fixed cost C. Indirect manufacturing expenses

D. Semi-variable cost D. Total cost

What type of cost increases step-wise? Ans. A

A. Supervision cost Research and development costs and

administrative expenses are added to the
B. Direct labor cost factory cost to give the _______ of the
product.
C. Semi-variable cost
A. Total cost
D. Operating and maintenance cost
B. Marketing cost
Ans. C
C. Manufacturing cost
Which of the following is NOT a variable cost?
D. Prime cost
A. Cost of miscellaneous supplies
Ans. C
B. Income taxes
The sum of the prime cost and the indirect
C. Payroll benefit costs manufacturing cost is known as

D. Insurance costs A. Factory cost

Ans. D B. Research and development cost

Which of the following is Not a fixed cost? C. Manufacturing cost

A. Rent D. Total cost

B. Janitorial service expenses Ans. A

C. Supervision costs The manufacturing cost plus selling expenses

equals
D. Depreciation expenses
A. Total cost
Ans. C
B. Indirect production cost

C. Administrative cost

D. Miscellaneous cost
The annual costs that are incurred due to the
functioning of a piece of equipment is known Ans. A
as
Which of the following is NOT a direct labor
A. General, selling and administrative expense?
expenses
A. Inspection
B. Prime cost
B. Testing
C. Operating and maintenance costs
C. Supervision
D. Total cost
D. Assembly
Ans. C
Ans. C
The sum of the direct labor cost and the
direct material cost is known as All are administrative expenses EXCEPT:

A. Prime cost A. Marketing

 B. Accounting C. Liability accounts

C. Data processing D. Owner’s equity accounts

D. Office supplies Ans. B

Ans. A

One of the following is NOT a selling or

marketing expense. Which one?
The journal and the ledger together are known
A. Advertising simply as _____ of the company.

B. Commission A. Accounting system

C. Insurance B. The books

D. Transportation C. Bookkeeping system

Ans. C D. Balance sheet

Research and development expenses includes all Ans. B

EXCEPT one. Which one?
The basic accounting equation is
A. Testing
A. Assets = Liability + Owner’s equity
B. Drafting
B. Liability = Assets + Owner’s equity
C. Prototype
C. Owner’s equity = Assets + Liability
D. Laboratory
D. Owner’s equity = Liability – Assets
Ans. D
Ans. A
Which is not a factory overhead expense?
The ability to convert assets to cash quickly
A. Pension, medical, vacation benefits is known as

B. Expediting A. Solvency

C. Quality control and inspection B. Liquidity

D. Testing C. Leverage

Ans. D D. Insolvency

Bookkeeping consists of two steps, namely Ans. B

recording the transactions and categorization
of transactions. Where are the transactions The ability to meet debts as they become due
(receipts and disbursements? Recorded? is known as

A. Journal A. Solvency

B. Ledger B. Leverage

C. Columnar C. Insolvency

D. Statement of account D. Liquidity

Ans. A Ans. A

The following are ledger accounts EXCEPT: What is considered as an index of short-term
paying ability?
A. Asset accounts
A. Current ratio
B. Bank accounts
 B. Acid test ratio The present worth of cost associated with an
asset for an infinite period of time is
C. Gross margin referred to as

D. Return of investment A. Annual cost

Ans. A B. Capitalized cost

An acid test ratio is a ratio of C. Increment cost

A. Gross profit to net sales D. Operating cost

B. Net income before taxes to net sales Ans. B

C. Quick assets to current liabilities A stock of a product which is held by a trade

body or government as a means of regulating
D. Net income to owner’s liabilities the price of that product.

Ans. C A. Stock pile

B. Hoard stock

C. Buffer stock

D. Withheld stock

The ratio of the net income to the owner’s Ans. C

equity is known as
A negotiable claim issued by a bank in lieu of
A. Price-earning ratio a term deposit is called

B. Profit margin ratio A. Cheque

C. Return of investment B. T-bills

D. Gross margin C. Currency

Ans. C D. Certificate of deposit

Payback period is the ratio of Ans. D

A. Initial investment to net annual profit A form of business firm which is owned and run
by a group of individuals for their mutual
B. Cost of goods sold to average
benefit
Cost of inventory on hand
A. Cooperative
C. gross profit to net sales
B. Corporation
D. net income before taxes to net sales
C. Enterprise
Ans. A
D. Partnership
A secondary book of accounts the information
Ans. A
of which is obtained from the journal
A document which shows the legal ownership of
A. Balance sheet
financial security and entitled to payments
thereon.
B. Ledger
A. Coupon
C. Worksheet
B. Contract
D. Trial balance
C. Bond
Ans. B
 D. Consol C. The first day is included and the last
day is excluded
Ans. A
D. The first day is excluded and the last
A government bond which have an indefinite day is included
life rather than a specific maturity
Ans. D
A. Coupon
In the so-called “Banker’s Rule”,
B. T-bill
A. The number of days in 1 year is 360 days
C. Debenture
B. The number of days in 1 year is 365 days
D. Consol
C. The number of days in each month is 30
Ans. D days

Refers to the orders quantity that minimizes
the inventory cost per unit time.
A. Economic order quantity
B. Social order quantity
D. The number of days in 1 year is 366 days
Ans. A
To discount an amount F for n conversion
periods means

C. Public order quantity A. To find the present value on a day

which is n periods after F is due
D. Private order quantity
B. To find the present value on a day
Ans. A which is n periods before F is due

What is referred to as an individual who C. To find the present value on a day

organizes factors of production to undertake a which is (n-1) periods before F is due
venture with a view to profit?
D. To find the present value on a day
A. Agent which is (n+1) periods before F is due

B. Entrepreneur Ans. B

C. Salesman In the formula for compound interest, F= P

(1+i)n, the value (1+i)n is called ____.
D. Commissioners
A. Discount factor
Ans. B
B. Interest factor
The money that is inactive and does not
contribute to productive effort in an economy C. Accumulation factor
is known as
D. Increase factor
A. Idle money
Ans. C
B. Hard money
To find the present worth of a future amount
C. Soft currency in compound interest, we use the formula
P=F(1+i)-n. What do you call the factor (1+i)-
D. Frozen asset
n?
Ans. A
A. Discount
In counting the number of days when computing
B. Accumulation factor
simple interest,
C. Interest factor
A. The first day is included
D. Reduction factor
B. The last day is excluded
Ans. A
 C. Discharging debt

What refers to an equation stating that the D. Amortization of debt

sum of the values, on a certain comparison
date, of one set of obligations is equal to Ans. D
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 do you call a fund, usually by periodic

deposits, to insure the accumulation of money
Ans. B to provide for possible large payments?

What is an annuity whose payments extend over A. Escrow fund

a period of time whose length cannot be
foretold accurately? B. Sinking fund

A. Annuity certain C. Mutual fund

B. Annuity uncertain D. Corporate fund

C. Incremental annuity Ans. B

D. Contingent annuity What is the term for the borrowed principal

usually mentioned in a typical bond?
Ans. D
A. Bond rate
What do you call the time between successive
payment dates of an annuity? B. Face value

A. Period interval C. Coupon rate

B. Annuity period D. Coupon value

C. Payment interval Ans. B

D. Annuity term Any date on which a coupon of a bond becomes

due will be referred to as a _____.
Ans. C
A. Maturity date
The time from the beginning of the first
payment interval to the need of the last one B. Term of the bond
is called the _____ of the annuity.
C. Coupon date
A. Period
D. Due date
B. Term
Ans. C
C. Nature
If P is the price of a bond and V is its
D. Type redemption value, what do you call the value
P-V?
Ans. B
A. Par value
What refers to the extinction of the debt by
any satisfactory set of payments? B. Face value

A. Liquidation C. Premium

B. Liability discharge D. Bond discount

 Ans. C In the sale of a bond, the actual purchase
price on any day is called ____.

A. Face value
When can we say that the bond is purchased at
a discount? B. Quoted price

A. When the price of the bond is greater C. Accrued price

than the redemption value.
D. Flat price
B. When the price of the bond is less than
the redemption value. Ans. D

C. When the price of the bond is equal What do you call the difference between the
than the redemption value. flat price of the bond and the quoted price
of the bond?
D. When the price of the bond is either
equal to or greater than the redemption A. Par value
value.
B. Accrued interest
Ans. B
C. Bond rate

D. And-interest price

The quoted price of a bond is sometimes called

When can we say that the bond is purchased at _______.
a premium?
A. Par value
A. When the price of the bond is greater
than the redemption value. B. Face value

B. When the price of the bond is less than C. An-interest price

the redemption value.
D. Coupon price
C. When the price of the bond is equal
Ans. C
than the redemption value.
The yield of a bond is obtained by which of
D. When the price of the bond is either
the following formulas:
equal to or greater than the redemption
value.
A. Average investment__
Ans. A
Average annual interest
Which of the following will happen if bond is
bought at a discount?
B. Average annual interest_
A. Each coupon payment is too small to pay
all interest due on the investor’s Average investment
principal.

B. Each coupon payment is greater than the

interest due on the investor’s C. Par value_
principal.
Flat value
C. The unpaid interest on each coupon date
will not be considered as a new
investment in the bond.
D. Par value_
D. The difference between the coupon
payment and the interest due is a Flat value
partial repayment of principal.

Ans. A
Ans. B
What is a bond whose face value is redeemable D. Net rate
in installments, with interest payable
periodically as due on outstanding principal? Ans. A

A. Annuity bond The acid test ratio is also known as quick

ratio. Which one represents the quick ratio?
B. Serial bond
A. Quick assets_____
C. Treasury bond
Current liabilities
D. Government bond

Ans. B
B. Net credit sales___
What is the term for the sum of depreciation
charges to date? Average net receivables

A. Accrued depreciation

B. Applied depreciation C. Gross profit____

C. Accumulated depreciation Current liabilities

D. All of the above

Ans. A D. Gross profit__

The difference between the value of an asset Net sales

and its salvage or scrap value at the end of
the year is called ____. Ans. A

A. Depreciation Which of the following represents the gross

margin?
B. Accrued value
A. Net income__
C. Book value
Owner’s equity
D. Wearing value

Ans. D
B. Net credit sales___
What is a life annuity?
Average net receivables
A. A sequence of payment for a certain
person which stops when person dies.

B. A sequence of payment intended for a C. Gross profit__

life insurance of a person.
Current liabilities
C. A sequence of payment for a certain
person which continues indefinitely.
D. Gross profit__
D. It is the same as perpetuity.
Net sales
Ans. A
Ans. D
What term is usually used by the banks to
represent the effective interest rate per
A receivable turnover is calculated using
period?
which of the following formulas?
A. Yield
A. Net income__
B. Nominal rate
Owner’s equity
C. Fixed rate
 B. Net credit sales___ D. Authorized capital stock

Average net receivables Ans. B

What refers to the price at which the quantity

demanded of a good is exactly equal to the
C. Gross profit__ quantity supplied?

Current liabilities A. Equilibrium market price

B. Fair market price

D. Gross profit__ C. Real market price

Net sales D. Exact market price

Ans. B Ans. A

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
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 motor cars).

Which one represents that price-earnings A. Placibo effect

ratio?
B. Luxury effect
A. Market price per share_
C. Engel’s law
Earnings per share
D. Staple law

B. Earnings per share___
Market price per share
Ans. C
What is the disciple within economics that
attempts to measure and estimate statistically
the relationship between two or more economic
variables?

C. Net credit sales__ A. Theory of values

Average net receivables B. Econometrics

C. Economatics

D. Gross profit_____ D. Econoscience

Current liabilities Ans. B

Ans. A What refers to the fall in the general price

level, frequently accompanied by a reduction
The book value per share of common stock is in the level of national income?
the ratio of the common shareholders’
equity to ______. A. Inflationary gap

A. Average shared B. Dissavings

B. Number of outstanding shares C. Disinflation

C. Total subscribed shared D. Inflation

 Ans. C
A price for a product just covers its
production and distribution costs with no
profit margin added.
The paper currency issued by the central
bank which forms the part of the country’s
money supply
a. T-bills

A. Cost price b. Bank note

B. Actual price c. Check

C. Real price d. Coupon

D. Original price Answer B

Ans. A Reduction in the national income and output

usually accompanied by the fall in the
A market where new entrants face cost similar general proce level
to those of established firms and where, on
leaving, firms are able to recoup their a. Devaluatio
capital costs, less depreciation.
b. Deflation
A. Free market
c. inflation
B. Competitive market
d. Depreciation
C. Limited market
Ans. B
D. Contestable market
It is a series of equal payment occurring at
Ans. D equal interval of time

What refers to a temporary grouping of a. Annuity

independent firms, organization and
governments, brought together to pool their b. Debt
resources and skills in order to undertake a
particular project? c. Amortization

A. Consortium d. Deposit

B. Cartel Ans. A

C. Cooperative The place and buyers come together

D. Union a. Market

Ans. A b. Business

c. Recreational center

What refers to a market for buying and selling d. Buy and sell of section
of raw materials such as tea, coffee, iron
ore, etc.?
Ans A
A. Commodity market

B. Raw market
A market where by there is only one buyer of
C. Natural market
an item for which there are no good
D. National market substitute

Ans. A a. Monopsony

b. Oligopoly
 c. Monopoly d. O and M costs

d. Oligopsony Ans. C

An index of short term paying ability is

called
Ans A
a. Receivable turn-over

b. Profit margin ratio

c. Current ratio

d. Acid-test ratio
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 Ans. D

a. Perpetuity

b. Ordinary Annuity An artificial expenses that spreads the

purchase price of an assets or another
c. Annuity due property over a number of years.

d. Deferred annuity a. Depreciation

ans.D b. Sinking Fund

The total income equals the total operating c. Amnesty

cost.
d. Bond
a. Balance sheet

b. In-place value
Ans. A
c. Check and balance

d. Break even-no gain no loss

Ans. D

Kind of obligation which has no condition

attached. Estimate value at the end of the useful life.

a. Analytic a. Market value

b. Pure b. Fair value

c. Gratuitous c. Salvage value

d. Private d. Book value

Ans. C

Direct labor costs incurred in the factory Ans. C

and direct material costs are the costs of
all materials that go into production. The
sum of these two direct costs is known as
Consists of the actual counting or
a. GS and A expenses determinination of the actual quantity of
the materials on hand as of a given date.
b. Operating and maintenance costs
a. Physical inventory
c. Prime cost
b. Material update
 c. Technological assessment b. A liability

d. Material count c. An expenses

d. An owner’s equity

Ans. A

Ans. A

Additional information of prospective

bidders on contract documents issued prior
to bidding date.

a. Delict

b. Escalatory

c. Technological assessment

d. Bid bulletin What is the highest position in the

corporation?

a. President
Ans. D
b. Board of directors

c. Chairman of the board

A series of uniform accounts over an
infinite period of time. d. Stockholders

a. Depreciation

b. Annuity Ans. C

c. Perpetuity

d. Inflation Type of ownership in business where

individuals exercise and enjoy the right in
their own interest.

Ans. C a. Equitable

b. Public

The quantity of a certain commodity that is c. Private

offered for sale at a certain price at a
given place and time. d. Pure

a. Demand

b. Supply Ans. C

c. Stocks

d. Goods Decrease in the value of a physical property

due to the passage of time.

a. Inflation
Ans. B
b. Depletion

c. Recession
Work-in process is classified as
d. Depreciation
a. An assets
 It is the amount which a willing buyer will
pay to a willing seller or a property where
Ans. D each has equal advantage and is under no
compulsion to buy or sell.

a. Fair value
An association of two or more individuals
for the purpose of operating a business as b. Market value
co-owners for profit.
c. Book value
a. Sole proprietorship
d. Salvage value
b. Company

c. Partnership
Ans. B
d. Corporation

This occurs in a situation where a commodity

Ans. C or service is supplied by a number of
vendors and there is nothing to prevent
additional vendors entering the market.

We may classify an interest rate, which a. Perfect competition

specifies the actual rate of interest on the
principal for one year as b. Oligopoly

a. Nominal rate c. Monopoly

b. Rate of return d. Elastic demand

c. Exact interest rate

d. Effective rate Ans. A

Ans. D 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.
It is defined to be the capacity of a
commodity to satisfy human want. a. Utilities

a. Discount b. Necessities

b. Luxury c. Luxuries

c. Necessity d. Product goods and service

d. Utility

Ans. C

Ans. B

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 Ans. D

d. Product goods and services

Money paid for the use of borrowed capital.

Ans. B a. Discount

b. Credit

A condition where only few individuals c. Interest

produce a certain product and that any
action of one will lead to almost the same d. Profit
action of the others.

a. Oligopoly
Ans. C
b. Semi-monopoly

c. Monopoly
Liquid assets such as cash and other assets
d. Perfect competition that can be converted quickly into cast such
as accounts receivable and merchandise are
called

Ans. A a. Total assets

b. Fixed assets

c. Current assets

d. None of the above

Ans. C

Grant total of the assets and operational

capability of a corporation.
The length of time which the property may be
a. Authorized capital operated at a profit.

b. Investment a. physical life

c. Subscribed capital b. Economic life

d. Money market c. Operating life

d. All of the above

Ans. A

Ans. B

The worth of the property equals to the

original cost less depreciation.
The provision in the contract that indicates
a. Scrap value the possible adjustment of material cost and
labor cost.
b. Face value
a. Secondary clause
c. Market value
b. Esclatory clause
d. Book value
 c. Contingency clause

d. Main clause Those funds that are required to make the

enterprise or project a going concern.

a. Initial investment
Ans. B
b. Current accounts

c. Working capital

d. Subscribed capital

Ans. C

The present worth of all depreciation over

the economic life of the item is called A market situation where there are one
seller and many buyers.
a. Book value
a. Monopoly
b. Capital recovery
b. Monopsony
c. Depreciation recovery
c. Oligopoly
d. Sinking fund
d. Oligopsony

Ans. C
Ans. A

Gross profit, sales less cost of goods sold,

as a percentage of sales is called A market situation where there are few
sellers and few buyers.
a. Profit margin
a. Oligopoly
b. Gross margin
b. Oligopsony
c. Net income
c. Bilateral oligopoly
d. Rate of return
d. Bilateral oligopsony

Ans. B
Ans. C

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

Ans. D
A market situation where there is one seller Ans. C
and one buyer.

a. Monopoly
The flow back of profit plus depreciation
b. Monopsony from a given project is called.

c. Bilateral monopoly a. Capital recovery

d. Bilateral monopsony b. Cash flow

c. Economic flow

Ans. C d. Earning value

A market situation where there are only two Ans. B

buyers with many sellers.

a. Duopoly
The profit derived from a project or
b. Oligopoly business enterprise whithout consideration
of obligations to financial contribution or
c. Duopsony claims of other based on profit.

d. Oligopsony a. Economic life

b. Yield

Ans. C c. Earning value

d. Expected yield

The cumulative effect of elapsed time on the

money value of an event, based on the
earning power of equivalent investment funds Ans. A
capital should or will earn.

a. Present worth factor

b. Interest rate

c. Time value of money

The payment for the use of borrowed money is
d. Yield called

a. Loan

Ans. C b. Maturity value

c. Interest

Defined as the future value minus the d. Principal

present value.

a. Interest
Ans. C
b. Rate of return

c. Discount
The interest rate at which the present work
d. Capital of the cash flow on a project is zero of the
interest earned by an investment.
 a. Effective rate Ans. D

b. Nominal rate

c. Rate of return The recorded current value of an asset is

known as
d. Yield
a. Scrap value

b. Salvage value
Ans. C
c. Book value

d. Present wort
The ratio of the interest payment to the
principal for a given unit of time and
usually expressed as a percentage of the
principal. Ans. C

a. Interest

b. Interest rate Scrap value of an asset is sometimes known

as.
c. Investment
a. Book value
d. All of the above
b. Salvage value

c. Replacement value
Ans. B
d. Future value

The true value of interest rate computed by

equations for compound interest for a 1 year Ans. B
period is known as

a. Expected return
What is sometimes called second hand value?
b. Interest
a. Scrap value
c. Nominal interest
b. Salvage value
d. Effective interest
c. Book value

d. Going value
Ans. D

Ans. B
The intangible item of value from the
exclusive right of a company to provide a
specific product or service in a stated
An intangible value which is actually
region of the country.
operating concern has due to its operation.
a. Market value
a. Book value
b. Book value
b. Fair value
c. Goodwill value
c. Goodwill value
d. Franchise value
d. Going value
 Ans. D A type of annuity where the payments are
made at the start of each period from the
first period.

The value which a disinterested third party, a. Ordinary annuity

different from the buyer and seller, will
determine in order to establish a price b. Annuity due
acceptable to both parties.
c. Deferred annuity
a. Market value
d. Perpetuity
b. Good value

c. Fair value
Ans. B
d. Franchise value

Which is not an essential element of an

Ans. C ordinary annuity?

a. The amounts of all payments are

equal.
A type annuity where the payments are made
at the end of each payment period starting b. The payments are made at equal
from the first period. interval of time

a. Ordinary annuity c. The first payment is made at the

beginning of each period
b. Annuity due
d. Compound interest is paid on all
c. Deferred annuity amounts in the annuity

d. Perpetuity

Ans. C

Ans. A

A is a periodic payment and I is the

interest rate, then present worth of a
It is a series of time where the first perpetuity =
payment is made after several periods, after
the beginning of the payment. a. Ai

a. Deferred annuity b. Ai^n

b. Delayed annuity c. A^n/ i

c. Progressive annuity d. A/i

d. Simple annuity

Ans. D

Ans. A

A mathematical expression also known as the

present value of one is called

a. Load factor

b. Demand facetor

c. Sinking fund factor

 d. Present worth factor
Ans. D
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
Ans. D
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
Ans. C
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
Ans. D
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
Ans. A
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
Ans. A
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 asset’s estimated life.
a. Straight line method
b. Sinking fund method
c. Declining balance method
d. SYD method
Ans. B
 ans. B

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
The function of interest rate and time
determines the cumulative amount of a d. first cost + salvage value
sinking fund resulting from specific
deposits.

a. Sinking fund factor ans. C

b. Present worth factor

c. Capacity the lessening of the value of an asset due

to the decrease in the quantity available
d. Demand factor ( referring to the natural resources, coal,
oil, etc)

a. depreciation
Ans. A
b. depletion

c. inflation
The first cost of any property includes
d. incremental cost
a. The original purchase price and
freight and transportation
charges
ans. B
b. Installation expenses

c. Initial taxes and permits fee

is the simplest form of business organization
d. All of the above
a. sole propeitorship

b. partnership
Ans. A
c. enterprise

d. corporation
In SYD method, the sum of years digit is
calculated using which formua with n= number
of useful years of the equipment.
ans. A
a. n(n-1)/2

b. n(n+1)/2
an association of two or more person for a
c. n(n+1) purpose of engaging in a profitable business

d. n(n-1) a. sole proprietorship

b. enterprise
 c. partnership b. 5

d. corporation c. 10

d. 7

Ans. C

Ans. B

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

Ans. D

Double taxation is disadvatange of which

business organization

a. Sole proprietorship

b. Partnership

c. Corporation

d. Enterprise

In case of bankruptcy of a partnership

Ans. C
a. The partners are not liable for
the liabilities of the
partnership.
Which is NOT a type of business organization?
b. The partnership assets (excluding
a. Sole proprietorship the partner personal assets) only
will be used to pay the
b. Corporation liabilities.

c. Enterprise c. The partners personal assets are

attached to the debt of the
d. Partnership partnership

d. The partners may sell stock to

generate additional capital.
Ans. C

Ans. C
What is the minimum number of incorporators
in order that a corporation be organized?

a. 3 Which is TRUE about partnership?

 a. It has a perpetual life. c. Incorporators stock

b. It will be desolved if one of the d. Common stock

partners ceases to be connected
with the partnership

c. It can be handed down from one Ans. D

generation of partners to
another.

d. Its capitalization must be equal The amount of company’s profits that the
for each partner. board of directors of the corporation
decides to distribute to ordinary
shareholders.

Ans. D a. Dividend

b. Return

Which is TRUE about corporation? c. Share stock

a. It is the not best form of d. Par value

business organization.

b. The minimum number of

incorporators to start a Ans. 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.
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
Ans. D
c. Preferred stock

d. Common stock
Represent ownership, and enjoys certain
preference than ordinary stock.
Ans. A
a. Authorized capital stock

b. Preferred stock
A form of fixed- interest security issued by
c. Common stock
central or local governments, companies,
d. Incorporator’s stock banks or other institutions. They are
usually a form of long-term security, buy
may be irredeemable, secured or unsecured.

Ans. B a. Bonds

Represent the ownership of stockholders who b. T-bills

have a residual claim on the assets of the
corporation after all other claims have been c. Certificate of deposit
settled.
d. All of these
a. Authorized capital

b. Preferred stock
Ans. A
 a. Mortgage bond

A type of bond where the corporation b. Register bond

pledges securities which it owns (i.e.
stock, bonds of its subsidiaries) c. Collateral trust bond

a. Mortgage bond d. Debenture bond

b. Register bond

c. Coupon Bond Ans. C

d. Collateral trust bond

Ans. D

A type of bond which does not have security

except a promise to pay by the issuing
corporation.

ECONOMIC’S
FINAL COACHING

By Tiger’s Review Center