A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries.
A. Mortgage bond
B. Joint bond
C. Security bond
D. Collateral trust bond
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What is a measure of the average speed with which accounts receivable are collected?
A. Current ratio
B. Quick ratio
C. Acid test ratio
D. Receivable turnover
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What is the change in cost per unit variable change called?
A. Variable cost
B. Incremental cost
C. Fixed cost
D. Supplemental cost
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What refers to the saving which takes place because goods are not available for consumption rather than consumer really want to save?
A. Compulsory saving
B. Consumer saving
C. Forced saving
D. All of the above
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Cash money and credit necessary to establish and operate an enterprise are generally called ______.
A. Capital
B. Funds
C. Assets
D. Liabilities
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What is an index of short-term paying ability?
A. Price-earnings ratio
B. Current ratio
C. Profit margin ratio
D. Gross margin
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Which one of the following statements is correct?
A. The number of years required to recover the initial cash investment in a project, is called Pay Back period (PBP)
B. The discount rate that equates the present value of the expected Net Cash Flows (CFs) with the Initial Cash Outflow (ICO) is known as internal rate of return
C. The present value of the proposal's net cash flows, less the proposal's initial cash outflow is known as the Net Present Value (NPV)
D. All of these
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If a seller recovers his capital along with accumulated compensating interest not in one single lump-sum payment but in periodical equal payments, over time:
A. Capital Recovery Annuity fs availed
B. Present work Annuity is availed
C. Sinking Fund Annuity is availed
D. None of the above
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What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest?
A. Effective rate of interest
B. Nominal rate of interest
C. Compound interest
D. Simple interest
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What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified product and service in a certain region of the country?
A. Company value
B. Going value
C. Goodwill value
D. Franchise value
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What stock represents ownership and enjoys certain preferences than ordinary stock?
A. Authorized stock
B. Preferred stock
C. Incorporator’s stock
D. Presidential stock
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What is the factor name of the formula [ ( 1 + i ) n − 1 i ( 1 + i ) n ] ?
A. Uniform series sinking fund
B. Capital recovery
C. Single payment present worth
D. Uniform gradient future worth
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The financial analysis:
A. Helps a share holder to compare the expected return on his investment in the firm against the expected return from other alternative investment
B. Helps a bank to know the financial position of the firm for granting a loan to the firm
C. Helps to judge the success of the firm's financial plans
D. All of these
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What refers to a document that shows proof of legal ownership of a financial security?
A. Bond
B. Bank note
C. Coupon
D. Check
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What refers to the exchange mechanism that brings together the sellers and the buyers of a product, factor of production or financial security?
A. Mall
B. Market
C. Store
D. Office
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What denotes in the fall in the exchange rate of one currency in terms of the others? This term is usually applies to the floating exchange rate.
A. Currency appreciation
B. Currency depreciation
C. Currency devaluation
D. Currency float
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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?
A. Straight line method
B. Sinking fund method
C. Sum-of-year digit method
D. Declining balance method
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The sunk costs include:
A. A past expenditure
B. An unrecovered balance
C. An invested capital that cannot be retrieved
D. All of these
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Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”.
A. 13.15 %
B. 13.32 %
C. 13.46 %
D. 13.73 %
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Annuities involve:
A. A series of payments
B. All payments of equal amount
C. Payment at equal time intervals
D. All of these
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