Question: 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______________?

• 1. Currency appreciation
• 2. Currency depreciation
• 3. Currency devaluation
• 4. Currency float

Question: 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 ____________________?

• 1. Currency appreciation
• 2. Currency depreciation
• 3. Currency devaluation
• 4. Currency float

Question: What refers to the saving which takes place because goods are not available for consumption rather than consumer really want to save ?

• 1. Compulsory saving
• 2. Consumer saving
• 3. Forced saving
• 4. All of the above

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