E Eco 1 Flashcards
(122 cards)
1
Q
Which one of the following contains only items which are considered fixed charges
A
A. Interest, taxes, amortization, insurance, rent
2
Q
An economic study is made of the total amount cost (C) for a series of alternative investment (P) for a given project. If C is plotted as the ordinate versus P, the most desirable occurs when
A
C. dC/dP = 0
3
Q
Reduction in the level of national Income and output usually accompanied by the fall in the general price level.
A
B. deflation
4
Q
It is a series of equal payments occurring at equal interval of time.
A
A. Annuity
5
Q
The place where buyers and sellers come together.
A
A. Market
6
Q
A market whereby there is only one buyer of an item for which there are no good substitute.
A
A. Monopsony
7
Q
It is a series of equal payments occurring at equal interval of time where the first payment is made after several periods, after the beginning of the payment.
A
D. Deferred annuity
8
Q
The total income equals the total operating cost.
A
D. Break even-no gain no loss
9
Q
Kind of obligation which has no condition attached.
A
C. Gratuitous
10
Q
Direct labor cost incurred in the factory and direct materials cost are the costs of all materials that go into production. The sum of these two direct costs is known as
A
C. Prime cost
11
Q
An index of short term paying ability is called
A
D. acid-test ratio
12
Q
An artificial expenses that spreads the purchase price of an asset or another property over a number of years.
A
A. Depreciation
13
Q
Estimated value at the end of the useful life.
A
C. Salvage value
14
Q
Consists of the actual counting or determination of the actual quantity of the materials on hand as of a given date.
A
A. Physical inventory
15
Q
Additional information of prospective bidders on contract documents issued prior to bidding date.
A
D. Bid bulletin
16
Q
An evil wrong committed by a person damaged another person’s property or reputation is
A
A. tort
17
Q
A series of uniform accounts over an infinite period of time.
A
C. Perpetuity
18
Q
The quantity of a certain commodity that is offered for sale at a certain price at a given place and time.
A
B. Supply
19
Q
Work-in process is classified as
A
A. an asset
20
Q
What is the highest position in the corporation?
A
C. Chairman of the Board
21
Q
Type of ownership in business where individuals exercise and enjoy
A
C. Private
22
Q
Decrease in the value of a physical property due to the passage of time.
A
D. Depreciation
23
Q
An association of two or more individuals for the purpose of operating a business as co-owners for profit.
A
C. Partnership
24
Q
We may classify an interest rate, which specifies the actual rate of interest on the principal for one year as
A
D. effective rate
25
Parties whose consent or signature in a contract is not considered intelligent.
C. Demented persons
26
It is defined to be the capacity of a commodity to satisfy human want.
B. Luxury
27
It is the amount which a willing buyer will pay to a willing seller for a property where each has equal advantage and is under no compulsion to buy or sell.
B. Market value
28
This occurs in a situation where a commodity or service is supplied by a number of vendors entering the market.
A. Perfect competition
29
These are products or services that are desired by human and will be purchased it money is available after the required necessities have been obtained.
C. Luxuries
30
These are products or services that are required to support human life and activities, that will be purchased in somewhat the same quantity even though the price varies considerably.
B. Necessities
31
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
32
Grand total of the assets and operational capability of a corporation.
A. Authorized Capital
33
The worth of the property equals to the original cost less depreciation.
D. Book value
34
Money paid for the use of borrowed capital.
C. Interest
35
Liquid assets such as cash and other assets that can be converted quickly into cash, such as accounts receivable and merchandise are called
C. current assets
36
The length of time which the property may be operated at a profit.
B. Economic life
37
The provision in the contract that indicates the possible adjustment of material cost and labor cost.
B. Escalatory clause
38
The present worth of all depreciation over the economic life of the item is called
C. depreciation recovery
39
Gross profit, sales less cost of good sold, as a percentage of a sales is called
B. gross margin
40
Worth of the property as shown in the accounting records of an enterprise.
D. Book value
41
Those funds that are required to make the enterprise or project a going concern.
C. Working capital
42
A market situation where there is only one seller with many buyer.
A. Monopoly
43
A market situation where there are few sellers and few buyers.
C. Bilateral oligopoly
44
A market situation where there is one seller and one buyer.
C. Bilateral monopoly
45
A market situation where there are only two buyers with many sellers.
C. duopsony
46
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.
C. Time value of money
47
Defined as the future value minus the present value.
C. discount
48
The flow back of profit plus depreciation from a given project is called
B. Cash flow
49
The profit derived from a project or business enterprise without consideration of obligations to financial contributions or claims of other based on profit
A. Economic return
50
The payment for the use of borrowed money is called
C. interest
51
The interest rate at which the present work of the cash on a project is zero of the interest earned by an investment.
C. Rate of return
52
The ratio of the interest payment to be principal for a given unit of time and usually expressed as a percentage of the principal.
B. interest rate
53
The true value of interest rate computed by equations for compound interest for a 1 year period is known as
D. effective interest
54
The intangible item of value from the exclusive right of a company in a stated region of the country.
D. Franchise value
55
The recorded current value of an asset is known as
C. book value
56
Scrap value of an asset is sometimes known as
B. salvage value
57
Sometimes called second hand value.
B. Salvage value
58
An intangible value which is actually operating concern has due to its operation.
D. Going value
59
The value which has a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties.
C. Fair value
60
A type of annuity where the payments are made at the end of each payment period staring from the first period.
A. Ordinary annuity
61
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.
A. Deferred annuity
62
A type of annuity where the payments are made at the start of each period, beginning from the first period.
B. Annuity due
63
Which is NOT an essential element of an ordinary annuity?
C. The first payment is made at the beginning of each period
64
A is a periodic payment and I is the interest rate, then present worth of a perpetuity
D. A/i
65
A mathematical expression also known as the present value of a n annuity of one called
D. present worth factor
66
As applied to a capitalized asset, the distribution of the initial cost by periodic changes to operation as in depreciation or the reduction of s debt by either periodic or irregular prearranged program is called
D. amortization
67
The reduction of the value of an asset due to constant use and passage of time.
C. Depreciation
68
A method of computing depreciation in which the annual charge is a fixed percentage of the depreciation book value at the beginning of the year to which the depreciation applies.
D. Declining balance method
69
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.
C. Declining balance method
70
Which of the following depreciation methods cannot have a salvage
C. Declining balance method
71
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.
B. Sinking fund method
72
The function of interest rate and time that determines the cumulative amount of a sinking fund resulting from specific periodic deposits.
A. Sinking fund factor
73
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
All of the Above
74
In SYD method, the sum of years digit is calculated using the formula
with n = number of useful years of the equipment.
B. n(n+1) / 2
75
Capitalized cost of any property is equal to the
C. first cost + interest of perpetual maintenance
76
The lessening of the value of an asset due to the decrease in the quantity available (referring to the natural resources, coal, oil, etc.)
B. depletion
77
Is the simplest form a business organization.
A. Sole proprietorship
78
An association of two or more persons for a purpose of engaging in a profitable business,
C. Partnership
79
A distinct legal entity which can practically transact any business transaction which a real person could do.
D. Corporation
80
Double taxation is a disadvantage of which business organization?
C. Corporation
81
Which is NOT a type of business organization?
C. Enterprise
82
What is the minimum number of incorporators in order that a corporation be organized?
B. 5
83
In case of bankruptcy of a partnership,
C. the partners personal assets are attached to the debt of the partnership
84
Which is TRUE about partnership?
B. It will be dissolved if one of the partners ceases to be connected with the partnership.
85
Which is TRUE about corporation
D. The stockholders of the corporation are only liable to the extent of their investments
86
Represent ownership, and enjoys certain preferences than ordinary stock.
B. Preferred stock
87
Represent the ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled.
D. Common stock
88
The amount of company's profit that the board of directors of the corporation decides to distribute to ordinary shareholders.
A. Dividend
89
A certificate 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
90
A form of fixed-interest security issued by central or local government, companies, banks or other institutions. They are usually a form of long-term security, buy may be irredeemable, secured or unsecured.
А. Bond
91
A type of bond where the corporation pledges securities which it owns (le, stocks, bonds of its subsidiaries).
D. Collateral trust bond
92
A type of bond which does not have security except a promise to pay by the issuing corporation.
D. Debenture bond
93
A type of bond issued jointly by two or more corporations.
A. Joint bond
94
A type of bond whose guaranty is in lien on railroad equipment's.
A. Equipment's obligations bond`
95
If the security of the bond is a mortgage on certain specified asset of a corporation, this bond is classified as
B. Mortgage bond
96
A type of bond where the corporation's owners name are recorded and the interest is paid periodically to the owners with their asking for
A. Registered bond
97
Bond to which are attached coupons indicating the interest due and the date when such interest is to be paid.
B. Coupon bond
98
An amount of money invested at 12% interest per annum will double in approximately
C. 6 years
99
The 72 rule of thumb is used to determine
B. how many years money will be double
100
To triple the principal, one must use
C. logarithms
101
A currency traded in a foreign exchange market for which the demand is consistently high in relation to its supply.
B. Hard currency
102
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
All of the Above
103
Which an example of an intangible asset?
D. Patents
104
Land, buildings, plant and machinery are examples of
C. fixed assets
105
An increase in the value of a capital asset is called
B. capital gain
106
The reduction in the money value of a capital asset is called
B. capital loss
107
It is a negotiable claim issued by a bank in lieu of a term deposit.
D. Certificate of deposit
108
Any particular raw material or primary product (e.g. cloth, wool, four, coffee..) is called
C. commodity
109
It denotes the fall in the exchange rate of one currency in terms of others. The term usually applies to floating exchange rates.
D. currency depreciation
110
The deliberate lowering of the price of a nation's currency in terms of the accepted standard (Gold, American dollar or the British pound)
B. currency devaluation
111
The residual value of a company's assets after all outside liabilities (shareholders excluded) has been allowed for.
B. Equity
112
A saving which takes place because goods are not available for consumption rather than the consumer really want to save.
C. forced saving
113
A document that shows proof of legal ownership of a financial security.
C. coupon
114
Defined as the capacity of commodity to satisfy human want.
C. Luxuries
115
It is the profit obtained by selling stocks at a higher price than its original purchase price.
C. Capital gain
116
The quantity of a certain commodity that is offered for sale at a certain price at a given time and place.
B. Supply
117
The quantity of a certain commodity that is bought at a certain price at u given time and place.
A. Demand
118
"When free competition exists, the price of a product will be that value where supply is equal to the demand".
D. Law of supply and demand
119
"When one of the factors or production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output".
A. Law of diminishing return
120
The place where sellers and buyers come together.
B. Market
121
GATT stands for
A. General Agreement of Tariff and Trade
122
The letter D in the Roman numerals is
C. 500
