| Question: | 151. 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. |
| Answer: | D |
| Question: | 152. Aggregation of individuals formed for the purpose of conducting a business and recognized by law as a fictitious person is called ______. |
| A. Partnership |
| B. Investors |
| C. Corporation |
| D. Stockholders |
| Answer: | C |
| Question: | 153. An association of two or more persons for the purpose of engaging into a business for profit is called ______. |
| A. Entrepreneurship |
| B. Partnership |
| C. Proprietorship |
| D. Corporation |
| Answer: | B |
| Question: | 154. 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 |
| Answer: | D |
| Question: | 155. What stock represents ownership and enjoys certain preferences than ordinary stock? |
| A. Authorized stock |
| B. Preferred stock |
| C. Incorporator’s stock |
| D. Presidential stock |
| Answer: | B |
| Question: | 156. 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 |
| Answer: | A |
| Question: | 157. 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 |
| Answer: | B |
| Question: | 158. What refers to the claim of anyone to ownership? |
| A. Proprietorship |
| B. Assets |
| C. Equity |
| D. Liability |
| Answer: | C |
| Question: | 159. Cash money and credit necessary to establish and operate an enterprise are generally called ______. |
| A. Capital |
| B. Funds |
| C. Assets |
| D. Liabilities |
| Answer: | A |
| Question: | 160. What represents the share of participation in business organizations? |
| A. Franchise |
| B. Partnership |
| C. Stock |
| D. Corporation |
| Answer: | C |
| Question: | 161. 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 |
| Answer: | B |
| Question: | 162. ______ is the element of value which a business has earned through the favorable consideration and patronage of its costumers arising from its well known and well conducted policies and operations. |
| A. Status company |
| B. Big income |
| C. Known owners |
| D. Goodwill |
| Answer: | D |
| Question: | 163. Which of the following is an example of intangible asset? |
| A. Cash |
| B. Investment in subsidiary companies |
| C. Furnitures |
| D. Patents |
| Answer: | D |
| Question: | 164. 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 |
| Answer: | C |
| Question: | 165. 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 |
| Answer: | C |
| Question: | 166. What is another term for “current assets”? |
| A. Fixed assets |
| B. Non-liquid assets |
| C. Liquid assets |
| D. Ccash |
| Answer: | C |
| Question: | 167. 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 |
| Answer: | A |
| Question: | 168. What is the change in cost per unit variable change called? |
| A. Variable cost |
| B. Incremental cost |
| C. Fixed cost |
| D. Supplemental cost |
| Answer: | B |
| Question: | 169. What is used to record historical financial transactions? |
| A. Bookkeeping system |
| B. Ledger system |
| C. Balance check |
| D. General journal system |
| Answer: | A |
| Question: | 170. What is a secondary book of accounts, the information of which is obtained from the journal is called? |
| A. Balanced sheet |
| B. Ledger |
| C. Worksheet |
| D. Trial balance |
| Answer: | B |
| Question: | 171. The original record of a business transaction is recorded in this book. |
| A. Work book |
| B. Journal |
| C. Ledger |
| D. Account book |
| Answer: | B |
| Question: | 172. All the proceeds which are received by the business as a result of the sale of goods is called ______. |
| A. Net income |
| B. Gross income |
| C. Net revenue |
| D. Total sales |
| Answer: | B |
| Question: | 173. All are classified under direct labor expenses EXCEPT one. Which one? |
| A. Inspection cost |
| B. Testing cost |
| C. Assembly cost |
| D. Supervision cost |
| Answer: | D |
| Question: | 174. 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 |
| Answer: | D |
| Question: | 175. The ratio of the net income before taxes to net sales is called ______. |
| A. Current ratio |
| B. Inventory turnover |
| C. Profit margin ratio |
| D. Price-earnings ratio |
| Answer: | C |
| Question: | 176. What do you call a one-time credit against taxes? |
| A. Due credit |
| B. Tax credit |
| C. Credible credit |
| D. Revenue credit |
| Answer: | B |
| Question: | 177. What is used when a quick estimate of the doubling time for the invested money is needed? |
| A. Rule of 48 |
| B. Rule of 36 |
| C. Rule of 24 |
| D. Rule of 72 |
| Answer: | D |
| Question: | 178. What is the increase in the money value of a capital asset is called? |
| A. Profit |
| B. Capital gain |
| C. Capital expenditure |
| D. Capital stock |
| Answer: | B |
| Question: | 179. What is the reduction in the money value of capital asset is called? |
| A. Capital expenditure |
| B. Capital loss |
| C. Loss |
| D. Deficit |
| Answer: | B |
| Question: | 180. What refers to the negotiable claim issued by a bank in lien of a term deposit? |
| A. Time deposit |
| B. Bond |
| C. Capital gain certificate |
| D. Certificate of deposit |
| Answer: | D |
| Question: | 181. 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 |
| Answer: | B |
| Question: | 182. 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 |
| Answer: | C |
| Question: | 183. 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 |
| Answer: | C |
| Question: | 184. The flow back of profit plus depreciation form a given project is called ______. |
| A. Capital recovery |
| B. Cash flow |
| C. Economic return |
| D. Earning value |
| Answer: | B |
| Question: | 185. As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called ______. |
| A. Annuity |
| B. Amortization |
| C. Capital recovery |
| D. Annuity factor |
| Answer: | B |
| Question: | 186. 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 |
| Answer: | C |
| Question: | 187. The true value of interest rate computed by equations for compound interest for a 1 year period is known as ______. |
| A. Expected return |
| B. Nominal interest |
| C. Effective interest |
| D. Economic return |
| Answer: | C |
| Question: | 188. Return on investment ratio is the ratio of the: |
| A. Net income to owner’s equity |
| B. Market price per share to earnings per share |
| C. Cost of goods sold to average cost of inventory at hand |
| D. Net credit sales to average net receivable |
| Answer: | A |
| Question: | 189. Gross margin is the ratio of the gross profit to ______. |
| A. Net sale |
| B. Owner’s equity |
| C. Inventory turnover |
| D. Quick assets |
| Answer: | A |
| Question: | 190. What is another term for “acid-test ratio”? |
| A. Current ratio |
| B. Quick ratio |
| C. Profit margin ratio |
| D. Price-earnings ratio |
| Answer: | B |
| Question: | 191. What is a government bond which has an indefinite life rather than a specific maturity? |
| A. Coupon |
| B. T-bill |
| C. Debenture |
| D. Consol |
| Answer: | D |
| Question: | 192. A form of business firm which is owned and run by a group of individuals for their mutual benefit is called ______. |
| A. Cooperative |
| B. Corporation |
| C. Enterprise |
| D. Partnership |
| Answer: | A |
| Question: | 193. What is 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. Stock pile |
| B. Hoard stock |
| C. Buffer stock |
| D. Withheld stock |
| Answer: | C |
| Question: | 194. The ability to meet debts as they become due is known as ______. |
| A. Solvency |
| B. Leverage |
| C. Insolvency |
| D. Liquidity |
| Answer: | A |
| Question: | 195. The ability to convert assets to cash quickly is known as ______. |
| A. Solvency |
| B. Liquidity |
| C. Leverage |
| D. Insolvency |
| Answer: | B |
| Question: | 196. What is the basic accounting equation? |
| A. Assets = liability + owner’s equity |
| B. Liability = assets + owners’ equity |
| C. Owner’s equity = assets + liability |
| D. Owner’s equity = liability – assets |
| Answer: | A |
| Question: | 197. The financial health of the company is measured in terms of: |
| A. Liquidity |
| B. Solvency |
| C. Relative risk |
| D. All of the above |
| Answer: | D |
| Question: | 198. What is an index of short-term paying ability? |
| A. Price-earnings ratio |
| B. Current ratio |
| C. Profit margin ratio |
| D. Gross margin |
| Answer: | B |
| Question: | 199. The common ratio is the ratio of: |
| A. Net credit sales to average net receivable |
| B. Current assets to current liabilities |
| C. Gross profit to net sales |
| D. Net income to owner’s equity |
| Answer: | B |
| Question: | 200. What is defined as the current assets minus inventories and prepaid expenses? |
| A. Profit margin ratio |
| B. Price-earnings ratio |
| C. Return of investment ratio |
| D. Quick ratio |
| Answer: | D |
