Question: The flow back of profit plus depreciation form a given project is called ___________________?

• 1. Capital recovery
• 2. Cash flow
• 3. Economic return
• 4. Earning value

Question: 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 ___________________?

• 1. Annuity
• 2. Amortization
• 3. Capital recovery
• 4. Annuity factor

Question: Capitalized cost of any structure or property is computed by which formula ?

• 1. First cost + interest of first cost
• 2. Annual cost – interest of first cost
• 3. First cost + cost of perpetual maintenance
• 4. First cost + salvage value

Question: The true value of interest rate computed by equations for compound interest for a 1 year period is known as __________________?

• 1. Expected return
• 2. Nominal interest
• 3. Effective interest
• 4. Economic return

Question: Return on investment ratio is the ratio of the_____________?

• 1. Net income to owner’s equity
• 2. Market price per share to earnings per share
• 3. Cost of goods sold to average cost of inventory at hand
• 4. Net credit sales to average net receivable

Question: Gross margin is the ratio of the gross profit to _________________?

• 1. Net sale
• 2. Owner’s equity
• 3. Inventory turnover
• 4. Quick assets

Question: What is another term for “acid-test ratio” ?

• 1. Current ratio
• 2. Quick ratio
• 3. Profit margin ratio
• 4. Price-earnings ratio

Question: What is a government bond which has an indefinite life rather than a specific maturity ?

• 1. Coupon
• 2. T-bill
• 3. Debenture
• 4. Consol

Question: A form of business firm which is owned and run by a group of individuals for their mutual benefit is called ___________________?

• 1. Cooperative
• 2. Corporation
• 3. Enterprise
• 4. Partnership

Question: 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 ?

• 1. Stock pile
• 2. Hoard stock
• 3. Buffer stock
• 4. Withheld stock