Question: The original record of a business transaction is recorded in this book_____________?

• 1. Work book
• 2. Journal
• 3. Ledger
• 4. Account book

Question: All the proceeds which are received by the business as a result of the sale of goods is called _________________?

• 1. Net income
• 2. Gross income
• 3. Net revenue
• 4. Total sales

Question: All are classified under direct labor expenses EXCEPT one. Which one ?

• 1. Inspection cost
• 2. Testing cost
• 3. Assembly cost
• 4. Supervision cost

Question: What is a measure of the average speed with which accounts receivable are collected ?

• 1. Current ratio
• 2. Quick ratio
• 3. Acid test ratio
• 4. Receivable turnover

Question: The ratio of the net income before taxes to net sales is called __________________?

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

Question: What do you call a one-time credit against taxes ?

• 1. Due credit
• 2. Tax credit
• 3. Credible credit
• 4. Revenue credit

Question: What is used when a quick estimate of the doubling time for the invested money is needed ?

• 1. Rule of 48
• 2. Rule of 36
• 3. Rule of 24
• 4. Rule of 72

Question: What is the increase in the money value of a capital asset is called?

• 1. Profit
• 2. Capital gain
• 3. Capital expenditure
• 4. Capital stock

Question: What is the reduction in the money value of capital asset is called ?

• 1. Capital expenditure
• 2. Capital loss
• 3. Loss
• 4. Deficit

Question: What refers to the negotiable claim issued by a bank in lien of a term deposit ?

• 1. Time deposit
• 2. Bond
• 3. Capital gain certificate
• 4. Certificate of deposit