Which is true about partnership?
A. It has a perpetual life.
B. It will be dissolved if one of the partners ceases to be connected with the partnership.
C. It can be handed down from one generation of partners to another.
D. Its capitalization must be equal for each partner.
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What refers to the interest rate at which the present work of the cash flow on a project is zero of the interest earned by an investment?
A. Economic return
B. Yield
C. Rate of return
D. Return of investment
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Capitalized cost of any structure or property is computed by which formula?
A. First cost + interest of first cost
B. Annual cost - interest of first cost
C. First cost + cost of perpetual maintenance
D. First cost + salvage value
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The more critical (or severe) test of the firm's liquidity can be judged by:
A. Liquidity ratio
B. Current ratio
C. Acid-Test (or Quick) ratio
D. Debts ratio
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In a cash flow series:
A. Uniform gradient signifies that an income or disbursement changes by the same amount in each interest period
B. Either an increase or decrease in the amount of a cash flow is called the gradient
C. The gradient in the cash flow may be positive or negative
D. All of these
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A VOM has a selling price of P 400. If its selling price is expected to decline at a rate of 10% per annum due to obsolescence, what will be its selling price after 5 years?
A. P 222.67
B. P 212.90
C. P 236.20
D. P 231.56
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The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now?
A. 10 months
B. 11 months
C. 12 months
D. 13 months
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The key to profitable operation for project cost control, is:
A. To keep the project cost equal to original cost estimate
B. To keep the project cost equal to subsequent construction budget
C. To keep the project cost within the cost budget and knowing when and where job costs are deviating
D. None of these
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What is an accounting term that represents an inventory account adjustment?
A. Cost of goods sold
B. Cost accounting
C. Standard cost
D. Overhead cost
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Current ratio is:
A. Current liabilities Current assets
B. Current liabilities Current assets + Loans
C. Current liabilities Current assets + Loans advances
D. None of these
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Under ordinary simple interest, how many days in one year?
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The original record of a business transaction is recorded in this book.
A. Work book
B. Journal
C. Ledger
D. Account book
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What are the common methods of computing depletion charge?
A. Rational method and irrational method
B. Conservative method and conventional method
C. Unit method and percentage method
D. Discrete method and depletion allowance method
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A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?
A. P 2,500.57
B. P 2,544.45
C. P 2,540.56
D. P 2,504.57
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What refers to the goods and services that are desired by human and will be acquired only after all the needs have been satisfied?
A. Producer products
B. Consumer products
C. Luxury
D. Necessity
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Shell Philippines, a multinational company, has a total gross income for a particular year of P 50,000,000. The taxable income after taking all deductions except for depletion is P 18,500,000. What is the allowable depletion allowance for that particular year? Take percentage of gross income for oil as 22%.
A. P 9,358.41
B. P 9,228.45
C. P 9,250.00
D. P 9,308.45
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What annuity is required over 12 years to equate with a future amount of P 20,000? Assume i= 6% annually.
A. P 1,290.34
B. P 1,185.54
C. P 1,107.34
D. P 1,205.74
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Both architect and engineer make use of the cost estimate of the project:
A. For site selection
B. For designing of the project
C. For choosing alternatives
D. All of these
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What refers to the present worth of cost associated with an asset for an infinite period of time?
A. Annual cost
B. Increment cost
C. Capitalized cost
D. Operating cost
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The interest calculated on the basis of 365 days a year, is known as:
A. Interest
B. Ordinary simple interest
C. Exact simple interest
D. None of these
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