Refer to the cash flow diagram of uniform gradient in a cash flow (in the given figure), the gradient is:
A. Rs. 10000 per year
B. Rs. 15000 per year
C. Rs. 20000 per year
D. Rs. 25000 per year
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A loan of P5,000 is made for a period of 15 months, at a simple interest rate of 15%, what future amount is due at the end of the loan period?
A. 5,937.50
B. 5,873.20
C. 5,712.40
D. 5,690.12
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A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment?
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A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?
A. 12.07 %
B. 12.34 %
C. 12.67 %
D. 12.87 %
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What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties?
A. Book value
B. Market value
C. Fair value
D. Franchise value
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What is another term for “current assets”?
A. Fixed assets
B. Non-liquid assets
C. Liquid assets
D. Ccash
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What is the ordinary interest on P1,500.50 for 182 days at 5.2%?
A. P39.01
B. P39.82
C. P39.45
D. P39.99
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In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes?
A. Straight line method
B. Sinking fund method
C. Sum-of-year digit method
D. Declining balance method
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What is another term for “acid-test ratio”?
A. Current ratio
B. Quick ratio
C. Profit margin ratio
D. Price-earnings ratio
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What refers to the amount of a product made available for sale?
A. Supply
B. Demand
C. Product
D. Good
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What refers to the cost of borrowing money or the amount earned by a unit principal per unit time?
A. Yield rate
B. Rate of return
C. Rate of interest
D. Economic return
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What is the market situation exist when there are many buyers and many sellers?
A. Perfect competition
B. Oligopoly
C. Oligopsony
D. Monopoly
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The product of CAF (SP) and PWF (SP) is:
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In a cash-flow diagram:
A. Time 0 is considered to be the present
B. Time 1 is considered to be the end of time period 1
C. A vertical arrow pointing up indicates a positive cash flow
D. All of these
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Lands, buildings, plants and machineries are example of what type of asset?
A. Current asset
B. Trade investment asset
C. Fixed asset
D. Intangible asset
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What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled?
A. Authorized capital stock
B. Preferred stock
C. Incorporator stock
D. Common stock
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The institute of Electronics and Communications Engineers of the Philippines (IECEP) is planning to put up its own building. Two proposals being considered are: A. The construction of the building now to cost P 400,000 B. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P 200,000. By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected?
A. P 19,122.15
B. P 19,423.69
C. P 19,518.03
D. P 19,624.49
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What refers to the residual value of a company’s assets after all outside liabilities (shareholders excluded) have been allowed for?
A. Dividend
B. Equity
C. Return
D. Par value
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What refers to the amount of money paid for the use of borrowed capital?
A. Interest
B. Rate of interest
C. Simple interest
D. Principal
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Which is true about corporation?
A. It is worse type of business organization.
B. The minimum number of incorporators to start a corporation is three.
C. Its life is dependent on the lives of the incorporators.
D. The stock holders of the corporation are only liable to the extent of their investments.
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