Engineering Sciences Pt2

Equipment trust bond

What type of bond whose guaranty is in lien on railroad equipment, such as freight and passenger cars, locomotives, etc.?

A. Railroad bond

B. Equipment obligation bond

C. Equipment bond

D. Equipment trust bond

Discount

What is defined as the future value minus the present value?

A. Yield

B. Rate of return

C. Capital

D. Discount

Preferred stock

What stock represents ownership and enjoys certain preferences than ordinary stock?

A. Authorized stock

B. Preferred stock

C. Incorporator's stock

D. Presidential stock

All of the choices

In computing depreciation of an equipment, which of the following represents the first cost?

A. The original purchase price and freight charges

B. Installation expenses

C. Initial taxes and permit fees

D. All of the choices

Bilateral oligopoly

What market situation exists where there are few sellers and few buyers?

A. Oligopoly

B. Oligopsony

C. Bilateral oligopoly

D. Bilateral oligopsony

Sole proprietorship

What is the simplest form of business organization?

A. Sole proprietorship

B. Partnership

C. Enterprise

D. Corporation

Depletion

What refers to the lessening of the value of an asset (eg. natural resources, such as coal, oil, etc.) due to the decrease in the quantity available?

A. Inflation

B. Depletion

C. Depreciation

D. Incremental cost

Common stock

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. Incoporator stock

D. Common stock

Declining balance method

What is a method of computing depreciation in which the annual charge is a fixed percentage of the depreciated book value at the beginning of the year to which the depreciation applies?

A. Straight line method

B. Sinking fund method

C. SOYD method

D. Declining balance method

Market

What refers to the place where sellers and buyers come together?

A. Department store

B. Market

C. Mall

D. Business center

dividend

The amount of company's profit that the board of directors of the corporation decides to distribute to ordinary shareholders is called

A. dividend

B. return

C. share of stock

D. equity

Equity

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. Per value

demand

The quantity of a certain commodity that is bought at a certain price at a given time and place is known as

A. supply

B. demand

C. necessity

D. utility

Scrap value

Salvage value is sometimes known as

A. Scrap value

B. Going value

C. Junk value

D. Second-hand value

Goodwill

is the element of value which a business has earned through the favorable consideration and patronage of its customers arising from its well known and well conducted policies and operations.

A. Status of company

B. Big income

C. Known owners

D. Goodwill

present worth factor

A mathematical expression also known as the present value of annuity of one is called

A. load factor

B. demand factor

C. sinking fund factor

D. present worth factor

supply

The quantity of a certain commodity that is offered for sale at a certain price at a given time and place is known as

A. supply

B. demand

C. necessity

D. utility

The stockholders of the corporation are only liable to the extent of their investments.

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 stockholders of the corporation are only liable to the extent of their investments.

Capital loss

What do you call the reduction in the money value of a capital asset?

A. Capital expenditure

B. Capital loss

C. Loss

D. Deficit

Currency devaluation

The deliberate lowering of the price of a nation's currency in terms of the accepted standard (Gold, American dollar or the British pound) is known as

A. Currency appreciation

B. Currency depreciation

C. Currency devaluation

D. Currency float

Registered bond

What type of bond where the corporation's owners name are recorded and the interest is paid periodically to the owners with their asking for it?

A. Preferred bond

B. Registered bond

C. Incorporators bond

D. All of the choices

Sinking fund factor

What refers to the function of interest rate and time that determines the cumulative amount of a sinking fund resulting from specific periodic deposits?

coupon

A type of bond to which are attached coupons indicating the interest due and the date when such interest is to be paid is _______ bond.

A. registered

B. coupon

C. mortgage

D. collateral trust

Bond

What is defined as the certificate of indebtedness of corporation usually for a period not less than 10 years and guaranteed by a mortgage on certain assets of a corporation?

A. Bond

B. T-bills

C. Stock

D. All of the choices

Patents

Which is an example of intangible asset?

A. Cash

B. Investment in subsidiary companies

C. Furnitures

D. Patents

economic return

The profit derived from a project or business enterprise without consideration of obligations to financial contributors and claims of others based on profit is known as

A. Yield

B. economic return

C. earning value

D. gain

The first payment is made at the beginning of the first period.

Which is NOT an essential element of an ordinary annuity?

A. The amounts of all payments are equal.

B. The payments are made at equal interval of time.

C. The first payment is made at the beginning of the first period.

D. Compound interest is paid on all amounts in the annuity.