10. How do you call the recorded current value of an asset?

a) Scrap value
b) Salvage value
c) Book value
d)
Present
worth
C
11. This is the ratio of an interest payment to the principal for a given unit of time and usually expressed
as a percentage of the principal. What is this?
a) Interest
b) Interest rate
c) Investment
d) Depreciation
rate
B
12. How do you call a method of depreciation whereby the amount to recover is spread uniformly over
the estimated life?
a) Straight line method
b) Sinking fund method
c) Declining balance method
d) SYD method
A
13. This method of depreciation has a fixed sum of money deposited regularly at compound interest in a
real or imaginary fund in order to accumulate an amount equal to the total depreciation of an assets
estimated life. What is this method of depreciation?
a) Straight line method
b) Sinking fund method
c) Declining balance method
d) SYD method
B
14. What is the true value of interest rate computed by equations for compound interest in a 1 year
period?
a) Expected return
b) Nominal interest
c) Interest
d)
Effective
interest
D
15. The scrap value of an asset is sometimes known as:
a) Book value
b) Salvage value
c) Replacement value
d) Future value
B
16. This is the reduction of the value of an asset due to constant use and passage of time. What is this?
a) Scrap value
b) Depletion
c) Depreciation
d) Book value
C
17. Which of the following is not an essential element of an ordinary annuity?
a) The amount of all the payments are equal
b) They are made at equal interval of time
c) The first payments is made at the beginning of each period
d) Compound interest is paid on all amounts in the annuity
C
18. Which of the following is not a type of business organization?
a) Sole proprietorship
b) Corporation
c) Enterprise
d) Partnership
C
19. What is a market condition where only few individual produce a certain product that action of one
will lead to almost the same action by the other?
a) Monopoly
b) Oligopoly
c) Semi-monopoly
d)
Perfect
competition
B
20. Which of the following is considered as the simplest form of business organization?
a) Sole proprietorship
b) Partnership
c) Management
d) Corporation
A
21. How do you call an association of two or more persons for a purpose of engaging in a profitable
business?
a) Sole proprietorship
b) Enterprise
c) Partnership
d) Corporation

C
22. This is a distinct legal entity that can practically transact any business transaction that a real person
could do. How do you call this entity?
a) Sole proprietorship
b) Enterprise
c) Partnership
d) Corporation
D
23. What is the minimum number of incorporators in order that a corporation be organized?
a) 3
b) 5
c) 10
d) 7
B
24. A currency traded in a foreign market for which the demand is consistently high in relation to its
supply.
a) Money market
b) Fixed assets
c) Trade investments
d) Underground
economy
A
25. Everything a company owns and which has a money value is classified as an asset. Which of the
following is classified as an asset?
a) Intangible assets
b) Fixed assets
c) Trade investments
d) Intangible assets, fixed assets, and trade investments
D
26. Which of the following is an example of intangible assets?
a) Cash
b) Investment in subsidiary companies
c) Fixed assets
d) Patents
D
27. Lands, buildings, plant and machinery are examples of:
a) Current assets
b) Fixed assets
c) Trade investments d)
Intangible
assets
B
28. This is 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, but may be irredeemable. How do
you call this?
a) Bonds
b) T-bills
c) Certificate of deposits
d) Shear of
stock
B
29. It is defined as the certificate of indebtedness of a corporation usually for a period not less than 10
years and guaranteed by a mortgage on certain assets of a corporation. What is this commonly called?
a) Bond
b) T-bills
c) Stock
d) Deposit
A