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WorksheetsEM 01
Total questions: 100
Worksheet time: 50mins
Name
Class
Date
1.
A type of bond issued jointly by two or more corporations
a)
registered bond
b)
debenture bond
c)
collateral trust bond
d)
joint bond
2.
A type of bond whose guaranty is in lien on railroads equipment
a)
debenture bond
b)
registered bond
c)
infrastructure bond
d)
equipment obligation bond
3.
If the security of the bond is a mortgage on certain specified asset of a corporation, this bond is classified as
a)
coupon bond
b)
joint bond
c)
registered bond
d)
mortgage bond
4.
A type of bond where the corporation's owner name are recorded and the interest is pain periodically to the owners with their asking for it
a)
coupon bond
b)
registered bond
c)
preferred bond
d)
incorporate bond
5.
An increase in the value of a capital asset is called
a)
profit
b)
capital expenditure
c)
capital gain
d)
capital stock
6.
Bond to which are attached coupons indicating the interest due and the date when such interest is to be paid
a)
collateral trust bond
b)
mortgage bond
c)
registered bond
d)
coupon bond
7.
An amount of money invested at 12% interest per annum will double in approximately
a)
6 years
b)
5 years
c)
7 years
d)
4 years
8.
The rule 72 is used to determine
a)
how many years to amass 1 million
b)
how many years money will triple
c)
how many years money will quadruple
d)
how many years money will double
9.
To triple the principal one must use
a)
derivatives
b)
implicit functions
c)
integration
d)
logarithms
10.
A currency traded in foreign exchange market to which the demand is consistently high in relation to its supply
a)
money market
b)
treasury bill
c)
certification of deposit
d)
hard currency
11.
Everything a company owns to which has a money value is classified as an asset. Which of the following is classified as an asset?
a)
all of these
b)
trade investments
c)
fixed asset
d)
intangible asset
12.
Which of the following is an example of an intangible asset?
a)
patents
b)
investments in subsidiary
c)
furnitures
d)
cash
13.
Land buildings, plants and machinery are examples of
a)
intangible assets
b)
fixed assets
c)
current assets
d)
trade investments
14.
The reduction in the money if a capital asset is called
a)
deficit
b)
capital expenditure
c)
capital loss
d)
loss
15.
It is negotiable claim issued by bank in lieu of a team deposit
a)
certificate of deposit
b)
bond
c)
capital gain
d)
time deposit
16.
Any particular raw materials or primary product (e.g. cloth, wool, flour, coffee..) is called
a)
utility
b)
necessity
c)
commodity
d)
stock
17.
It denotes the fall in the exchange rate of one currency in terms of others. The term usually applies to floating exchange rates
a)
currency depreciation
b)
currency float
c)
currency appreciation
d)
currency devaluation
18.
The deliberate lowering of the price of a nation's currency in terms of the accepted standard (Gold, American dollar or the British pound)
a)
currency depreciation
b)
currency float
c)
currency devaluation
d)
currency appreciation
19.
The residual value of a company's assets after all outside liabilities (shareholders excluded) have been allowed for
a)
par value
b)
dividend
c)
return
d)
equity
20.
A saving which takes place because goods are not available for consumption rather than the consumer really want to save
a)
forced saving
b)
consumer saving
c)
compulsory saving
d)
all of these
21.
A document that shows proof of legal ownership of a financial security
a)
coupon
b)
check
c)
bond
d)
bank note
22.
Defined as the capacity of commodity to satisfy human want
a)
utility
b)
luxuries
c)
necessities
d)
discount
23.
It is the profit obtained by selling stocks at a higher price than its original purchase price
a)
goodwill
b)
internal rate of return
c)
capital gain
d)
debenture
24.
The quantity of a certain commodity that is offered for sale at a certain price at a given time and place
a)
utility
b)
supply
c)
demand
d)
market
25.
The quantity of a certain commodity that is bought at a certain price at a given time and place
a)
demand
b)
market
c)
supply
d)
utitlity
26.
When free competition exists, the price of a product will be that value where supply is equal to the demand
a)
law of demand
b)
law of supply and demand
c)
law of supply
d)
law of diminishing return
27.
When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate in output
a)
law of diminishing return
b)
law of supply
c)
law of supply and demand
d)
law of demand
28.
An accounting term that represents an inventory account adjustments
a)
cost of goods sold
b)
variance
c)
overhead
d)
payback
29.
The simplest economic order quantity (EOQ) model is based on which of the following assumptions
a)
all of these
b)
demand is constant with respect to time
c)
reordering is instantaneous. the time between order placement and receipt is zero
d)
shortages are not allowed
30.
In the cash flow, expenses incurred before time = 0 is called
a)
firsts costs
b)
sunk costs
c)
disbursements
d)
receipts
31.
In economics a "short-term" transaction usually has a lifetime of
a)
5 years or less
b)
1 year or less
c)
10 years or less
d)
3 months or less
32.
An imaginary cost representing what will not be received if a particular strategy is rejected
a)
initial cost
b)
replacement cost
c)
opportunity cost
d)
sunk cost
33.
In replacement studies, the existing process or piece or equipment is known as
a)
defender
b)
asset
c)
challenger
d)
liability
34.
In replacement studies, the new process or piece of equipment being considered for purchase is known as
a)
asset
b)
liability
c)
challenger
d)
defender
35.
_______ means that the cost of the asset is divided into equal or unequal parts, and only one of these parts is taken as an expense each year
a)
depreciating the asset
b)
artificial expense
c)
capitalizing the asset
d)
expensing the asset
36.
Indicate the correct statement about depreciation
a)
the depreciation is not the same each year in straight line method
b)
the sum-of years digit method (SYD), the digits 1 to (n+1) is summed
c)
the declining balance method can be used even if the salvage value is zero
d)
double declining balance depreciation is independent of the salvage value
37.
An artificial deductible operating expense designated to compensate mining organizations for decreasing mineral reserves
a)
inflation
b)
depletion
c)
reflation
d)
deflation
38.
What type of cost increases step-wise?
a)
semi-variable cost
b)
direct labor cost
c)
operating and maintenance cost
d)
supervision cost
39.
Which of the following is NOT a variable cost?
a)
payroll benefit costs
b)
income taxes
c)
insurance costs
d)
cost of miscellaneous supplies
40.
Which of the following is NOT a fixed cost?
a)
depreciation expenses
b)
rent
c)
supervision costs
d)
janitorial service expenses
41.
The annual costs that are incurred due to the functioning of a piece of equipment is known as
a)
total cost
b)
general, selling and administrative expenses
c)
prime cost
d)
operating maintenance costs
42.
The sum of the direct labor cost and the direct material cost is known as
a)
operating and maintenance costs
b)
prime cost
c)
indirect manufacturing expenses
d)
total cost
43.
Research and development costs and administrative expenses are added to the factory cost to give the _______ of the product
a)
total cost
b)
marketing cost
c)
prime cost
d)
manufacturing cost
44.
The sum of the prime cost and the indirect manufacturing cost is known as
a)
total cost
b)
factory cost
c)
research and development cost
d)
manufacturing cost
45.
The manufacturing cost plus selling expenses equals
a)
miscellaneous cost
b)
administrative cost
c)
total cost
d)
indirect production cost
46.
Which of the is NOT a direct labor expenses?
a)
assembly
b)
supervision
c)
inspection
d)
testing
47.
All are administrative expenses EXCEPT:
a)
office supplies
b)
marketing
c)
data processing
d)
accounting
48.
One of the following is NOT a selling or marketing expense. Which one?
a)
commission
b)
insurance
c)
transportation
d)
advertising
49.
Research and development expenses includes all EXCEPT one. Which one?
a)
testing
b)
drafting
c)
prototype
d)
laboratory
50.
Which is not a factory overhead expense?
a)
Pension, medical, vacation benefits
b)
expediting
c)
quality control and inspection
d)
Testing
51.
Bookkeeping consists of two steps, namely recording the transactions and categorization of transactions. Where are the transactions (receipts and disbursements) recorded?
a)
journal
b)
columnar
c)
statement of account
d)
ledger
52.
The following are ledger accounts EXCEPT:
a)
owner's equity accounts
b)
asset accounts
c)
liability accounts
d)
bank accounts
53.
The journal and the ledger together are known simply as _______ of the company
a)
balance sheet
b)
the books
c)
accounting system
d)
bookkeeping system
54.
The basic accounting equation is
a)
Liability = Assets + Owner's Equity
b)
Owner's Equity = Liability - Assets
c)
Owner's Equity = Assets + Liability
d)
Assets = Liability + Owner's Equity
55.
The ability to convert assets to cash quickly is known as
a)
liquidity
b)
solvency
c)
insolvency
d)
leverage
56.
The ability to meet debts as they become due is known as
a)
leverage
b)
insolvency
c)
solvency
d)
liquidity
57.
What is considered as an index of short-term paying ability?
a)
gross margin
b)
current ratio
c)
return of investment
d)
acid test ratio
58.
An acid test ratio of
a)
gross profit to net sales
b)
quick assets to current liabilities
c)
net income before taxes to net sales
d)
net income to owner's liabilities
59.
The ratio of the net income to the owner's equity is known as
a)
price-earning ratio
b)
gross margin
c)
profit margin ratio
d)
return of investment
60.
Payback period is the ratio of
a)
net income before taxes to net sales
b)
initial investment to net annual profit
c)
cost of goods sold to average cost of inventory on hand
d)
gross profit to net sales
61.
A secondary book of accounts the information of which is obtained from the journal
a)
ledger
b)
trial balance
c)
balance sheet
d)
worksheet
62.
The present worth of cost associated with an asset for an infinite period of time is referred to as
a)
annual cost
b)
capitalized cost
c)
operating cost
d)
increment cost
63.
A stock of a product which is held by a trade body or government as a means of regulating the price of that product
a)
withheld stock
b)
buffer stock
c)
stock pile
d)
hoard stock
64.
A negotiable claim issued by a bank in lieu of a term deposit is called
a)
currency
b)
t-bills
c)
cheque
d)
certificate of deposit
65.
A form of business firm which is owned and run by a group of individuals for their mutual benefit
a)
cooperative
b)
corporation
c)
partnership
d)
enterprise
66.
A document which shows the legal ownership of financial security and entitled to payments thereon
a)
consol
b)
bond
c)
coupon
d)
contract
67.
A government bond which have an indefinite life rather than a specific maturity
a)
consol
b)
coupon
c)
debenture
d)
t-bill
68.
Refers to the orders quantity that minimizes the inventory cost per unit time
a)
social order quantity
b)
private order quantity
c)
public order quantity
d)
economic order quantity
69.
What is referred to as an individual who organizes factors of production to undertake a venture with a view to profit?
a)
agent
b)
commissioners
c)
salesman
d)
entrepreneur
70.
The money that is inactive and does not contribute to productive effort in an economy is known as
a)
hard money
b)
soft currency
c)
idle money
d)
frozen asset
71.
In counting the number of days when computing simple interest
a)
the first day is included and the last day is excluded
b)
the last day is excluded
c)
the first day is excluded and the last day is included
d)
the first day is included
72.
In the so-called "Banker's Rule"
a)
the number of days in 1 year is 360 days
b)
the number of days in each month is 30 days
c)
the number of days in 1 year is 366 days
d)
the number of days in 1 year is 365 days
73.
To discount an amount F for n conversion periods means
a)
to find the present value on a day which is (n+1) periods before F is due
b)
to find the present value on a day which is n periods before F is due
c)
to find the present value on a day which is (n-1) periods before F is due
d)
to find the present value on a day which is n periods after F is due
74.
In the formula for compound interest, F=P (1+i)n, the value (1+i)n is called
a)
increase factor
b)
accumulation factor
c)
interest factor
d)
discount factor
75.
To find the present worth of a future amount in compound interest, we use the formula P=F(1+i)-n. What do you call the factor (1+i)-n?
a)
interest factor
b)
accumulation factor
c)
reduction factor
d)
discount
76.
What refers to an equation stating that the sum of the values, on a certain comparison date, of one set of obligations is equal to the sum of the value of another set of this date?
a)
equation of value
b)
equality of value
c)
equality equation
d)
similarity equation
77.
What is an annuity whose payments extend over a period of time whose length cannot be foretold accurately?
a)
annuity certain
b)
contingent annuity
c)
incremental annuity
d)
annuity uncertain
78.
What do you call the time between successive payment dates of an annuity?
a)
period interval
b)
annuity term
c)
annuity period
d)
payment interval
79.
The time from the beginning of the first payment interval to the need of the last one is called the _____ of the annuity
a)
period
b)
term
c)
type
d)
nature
80.
What refers to the extinction of the debt by any satisfactory set of payments?
a)
amortization of debt
b)
discharging debt
c)
liquidation
d)
liability discharge
81.
What do you call a fund, usually by periodic deposits, to insure the accumulation of money to provide for possible large payments?
a)
corporate fund
b)
escrow fund
c)
sinking fund
d)
mutual fund
82.
What is the term for the borrowed principal usually mentioned in a typical bond?
a)
coupon value
b)
bond rate
c)
face value
d)
coupon rate
83.
Any date on which a coupon of a bond becomes due will be referred to as a _______
a)
coupon date
b)
maturity date
c)
term of bond
d)
due date
84.
If P is the price of a bond and V is its redemption value, what do you call the value P-V?
a)
premium
b)
par value
c)
bond discount
d)
face value
85.
When can we say that the bond is purchased at a discount?
a)
when the price of the bond is equal than the redemption value
b)
when the price of the bond is either equal to or greater than the redemption value
c)
when the price of the bond is less than the redemption value
d)
when the price of the bond is greater than the redemption value
86.
When can we say that the bond is purchased at a premium?
a)
when the price of the bond is either equal to or greater than the redemption value
b)
when the price of the bond is less than the redemption value
c)
when the price of the bond is equal than the redemption value
d)
when the price of the bond is greater than the redemption value
87.
Which of the following will happen if bond is bought at a discount?
a)
the unpaid interest on coupon date will not be considered as a new investment in the bond
b)
the difference between the coupon payment and the interest due is a partial repayment of principal
c)
each coupon payment is greater than the interest due on the investor's principal
d)
each coupon payment is too small to pay all interest due on the investor's principal
88.
In the sale of a bond, the actual purchase price on any day is called ______
a)
accrued price
b)
face value
c)
flat price
d)
quoted price
89.
What do you call the difference between the flat price of the bond and the quoted price of the bond?
a)
par value
b)
bond rate
c)
and-interest price
d)
accrued interest
90.
The quoted price of a bond is sometimes called ______
a)
par value
b)
face value
c)
an-interest price
d)
coupon price
91.
The yield of a bond is obtained by which of the following formulas:
a)
par value/ flat value
b)
par value/ face value
c)
ave. investment/ average annual interest
d)
ave. annual interest/ average investment
92.
What is a bond whose face value is redeemable in installments, with interest payable periodically as due on outstanding principal?
a)
government bond
b)
annuity bond
c)
serial bond
d)
treasury bond
93.
What is the term for the sum of depreciation charges to date?
a)
applied depreciation
b)
accumulated depreciation
c)
accrued depreciation
d)
all of these
94.
The difference between the value of an asset and its salvage or scrap value at the end of the year is called _______
a)
wearing value
b)
depreciation
c)
book value
d)
accrued value
95.
What is a life annuity?
a)
it is the same as perpetuity
b)
a sequence of payment for a certain person which stops when person dies
c)
a sequence of payment for a certain person which continues indefinitely
d)
a sequence of payment intended for a life insurance of a person
96.
What term is usually used by the banks to represent the effective interest rate per period?
a)
fixed rate
b)
yield
c)
net rate
d)
nominal rate
97.
The acid test ratio is also known as quick ratio. Which one represents the quick ratio?
a)
gross profit/ net sales
b)
quick assets/ current liabilities
c)
gross profit/ current liabilities
d)
net credits sales/ average net receivables
98.
Which of the following represents the gross margin?
a)
gross profit/ net sales
b)
gross profit/ current liabilities
c)
net income/ owner's equity
d)
net credit sales/ average net receivables
99.
A receivable turnover is calculated using which of the following formulas?
a)
gross profit/ net sales
b)
net credit sales/ average net receivables
c)
net income/ owner's equity
d)
gross profit/ current liabilities
100.
Which one represent that price-earnings ratio?
a)
market price per share/ earnings per share
b)
gross profit/ current liabilities
c)
earnings per share/ market price per share
d)
net credit sales/ average net receivables
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