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Q.1
The common ratio is the ratio of:
Net credit sales to average net receivable
Current assets to current liabilities
Gross profit to net sales
Net income to owner’s equity
Q.2
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 ______.
Currency appreciation
Currency depreciation
Currency devaluation
Currency float
Q.3
Ratio analysis of a construction firm is used for analysis by:
Share holders
Firm's management
Banks of the firm
Financial analysts
Q.4
What is the increase in the money value of a capital asset is called?
Profit
Capital gain
Capital expenditure
Capital stock
Q.5
The ability to meet debts as they become due is known as ______.
Solvency
Leverage
Insolvency
Liquidity
Q.6
The ability to convert assets to cash quickly is known as ______.
Solvency
Liquidity
Leverage
Insolvency
Q.7
What bond whose security is a mortgage on certain specified assets of the corporation?
Registered bond
Collateral trust bond
Mortgage bond
Debenture bond
Q.8
What is defined as the reduction or fall of the value of an asset due to constant use and passage of time?
Depletion
Inflation
Depreciation
Deflation
Q.9
What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results?
Functional depreciation
Design depreciation
Physical depreciation
Demand depreciation
Q.10
What refers to the amount of a product made available for sale?
Supply
Demand
Product
Good
Q.11
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?
Stock pile
Hoard stock
Buffer stock
Withheld stock
Q.12
Miss Calledo deposited P 1,000, P 1,500 and P 2,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 10% per annum. How much is in the account at the end of the 4th year?
P 4,880.00
P 4,820.00
P 4,860.00
P 4,840.00
Q.13
The declining balance method is also known as ______.
Double percentage method
Constant percentage method
Modified sinking fund method
Modified SYD method
Q.14
The true value of interest rate computed by equations for compound interest for a 1 year period is known as ______.
Expected return
Nominal interest
Effective interest
Economic return
Q.15
A farmer selling eggs at 50 pesos a dozen gains 20%. If he sells the eggs at the same price after the costs of the eggs rises by 12.5%, how much will be his new gain in percent?
6.89 %
6.65 %
6.58 %
6.12 %
Q.16
What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?
Unstable economy
Rate of interest cannot be exactly determined
The initial deprecation is high
The initial depreciation is low
Q.17
The CRF (ep) is also known as: [CRF(EP) - 8% - 7], where
8% is the rate of interest per year
Money is borrowed for n = 7 years
Both (A) and (B)
Neither (A) nor (B)
Q.18
A form of business organization in which a person conducts his business alone and entirely for his own profit, being solely responsible for all its activities and liabilities.
Sole proprietorship
Entrepreneurship
Partnership
Corporation
Q.19
A construction estimate is used
To judge tentatively or approximate value of the project
To produce a statement of the approximate cost
To decide an approximation of the value of the project and not the exact cost
None of these
Q.20
If ‘P’ is principal amount, ‘I’ is the rate of interest per annum and ‘n’ is the number of periods in years, the compound amount factor (CAF) is:
(1 + i)
n
(1 + i)
(1/2n)
√(n + i)
None of these
Q.21
The depletion allowance method of computing depletion is commonly known as ______.
Unit method
Percentage method
Factor method
Sinking fund method
Q.22
Liquidity ratios are used:
To measure a firm’s ability to meet short-cut obligations
To compare short term obligations to short-term resources available to meet these obligations
To obtain much insight into the present cash solvency of the firm and the firm
All of these
Q.23
The project contractor relies on the cost of the estimate:
For submission of a competitive bid for a lump-sum contract
For a unit price contract
For preparation of a definitive estimate to help negotiate contract
All of these
Q.24
Capitalized cost of a project is also known as ______.
Infinite cost
Life cycle cost
Life cost
Project cost
Q.25
“When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output”. This statement is known as the:
Law of diminishing return
Law of supply
Law of demand
Law of supply and demand
Q.26
“Under conditions of perfect competition, the price at which any given product will be supplied and purchased is the price that will result in the supply and the demand being equal.” This statement is known as the:
Law of diminishing return
Law of supply
Law of demand
Law of supply and demand
Q.27
A man loans P 187,400 from a bank with interest at 5% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 years. Find the annual payments.
P 43,600.10
P 43,489.47
P 43,263.91
P 43,763.20
Q.28
Keeping in view, the feasibility order of magnitude, the preliminary, conceptual or budget estimates, are prepared by:
Architect/engineer
Construction manager
Owner himself/herself
Construction manager
Q.29
If interest is paid more than once in a year, ‘i’ is the rate of interest per year, ‘n’ is the number of periods in years and ‘m’ is a number of periods per years, compound amount factor (CAF) is:
(1 + i/m)
n
(1 + i/n)
m
(1 + i/n)
1/m
(1 + i/m)
1/n
Q.30
What is the term for an annuity with a fixed time span?
Ordinary annuity
Perpetuity
Annuity certain
Annuity due
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