In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year? Straight line method Sinking fund method Sum-of-year digit method Declining balance method TRUE ANSWER : ? YOUR ANSWER : ?
What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund? Securities T-bills Bank notes Bond TRUE ANSWER : ? YOUR ANSWER : ?
The unrecovered depreciation which results due to poor estimates as to the life of the equipment is called ______. Sunk cost Economic life Annuity In-place value TRUE ANSWER : ? YOUR ANSWER : ?
A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan? P 6,999.39 P 6,222.39 P 6,292.93 P 6,922.93 TRUE ANSWER : ? YOUR ANSWER : ?
What refers to the present worth of all the amount the bondholder will receive through his possession of the bond? Face value of bond Value of bond Redeemed value of bond Par value of bond TRUE ANSWER : ? YOUR ANSWER : ?
The common ratio is the ratio of: Current assets to current liabilities Gross profit to net sales Net income to owner’s equity Net credit sales to average net receivable TRUE ANSWER : ? YOUR ANSWER : ?
What refers to the claim of anyone to ownership? Equity Liability Proprietorship Assets TRUE ANSWER : ? YOUR ANSWER : ?
In a cash-flow diagram: Time 1 is considered to be the end of time period 1 A vertical arrow pointing up indicates a positive cash flow Time 0 is considered to be the present All of these TRUE ANSWER : ? YOUR ANSWER : ?
What are the two classifications of goods and services? Ready-made and made-to-order Raw and finished Consumer and producer Local and imported TRUE ANSWER : ? YOUR ANSWER : ?
In computing depreciation of an equipment, which of the following represents the first cost? Installation expenses Initial taxes and permit fees All of these The original purchase price and freight charges TRUE ANSWER : ? YOUR ANSWER : ?