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What is defined as the interest on a load or principal that is based only on the original amount of the loan or principal?
What is defined as the interest on a load or principal that is based only on the original amount of the loan or principal?
Simple interest
What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund?
What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund?
Bond
The term used to express the series of uniform payments occurring at equal interval of time is?
The term used to express the series of uniform payments occurring at equal interval of time is?
Annuity
Double declining balance method and SYD method, which of the following is an accelerated depreciation method?
Double declining balance method and SYD method, which of the following is an accelerated depreciation method?
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Gross margin is the ratio of the gross profit to what?
Gross margin is the ratio of the gross profit to what?
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The difference between the present worth and the net worth at some future time is?
The difference between the present worth and the net worth at some future time is?
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What is the ratio of the market price per share to earnings per share called?
What is the ratio of the market price per share to earnings per share called?
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As applied to capitalized assets, the distribution of the initial cost by periodic changes to operation as in depreciation or the reduction of the depth by either periodic or irregular prearranged program is called?
As applied to capitalized assets, the distribution of the initial cost by periodic changes to operation as in depreciation or the reduction of the depth by either periodic or irregular prearranged program is called?
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The ratio of the interest payment to the principal for a given unit of time and is usually expressed as a percentage of the principal is known as?
The ratio of the interest payment to the principal for a given unit of time and is usually expressed as a percentage of the principal is known as?
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The true value of interest rate computed by equations for compound interest for a 1 year period is known as
The true value of interest rate computed by equations for compound interest for a 1 year period is known as
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What is the other term for acid-test ratio?
What is the other term for acid-test ratio?
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Funds supplied by others on which a fixed rate of interest must be paid, and the debt be repaid at a specific place and time, is known as?
Funds supplied by others on which a fixed rate of interest must be paid, and the debt be repaid at a specific place and time, is known as?
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What do you call any particular raw material or primary product such as cloth, wool, flour, coffee, etc.?
What do you call any particular raw material or primary product such as cloth, wool, flour, coffee, etc.?
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Which of these is NOT an essential element of ordinary annuity?
Which of these is NOT an essential element of ordinary annuity?
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Under ordinary simple interest, how many days in one year?
Under ordinary simple interest, how many days in one year?
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An equipment which cost $200,000$ has a useful life of 8 years, with a salvage value of $25,000$ at the end of its useful life. If the depreciation at the first year is $21,875$, what method is used in the calculation of depreciation?
An equipment which cost $200,000$ has a useful life of 8 years, with a salvage value of $25,000$ at the end of its useful life. If the depreciation at the first year is $21,875$, what method is used in the calculation of depreciation?
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What is defined as the reduction or fall of the value of an asset due to constant use and passage of time?
What is defined as the reduction or fall of the value of an asset due to constant use and passage of time?
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The suspension or repayment of debt or interest for a specified period of time is called?
The suspension or repayment of debt or interest for a specified period of time is called?
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What is an accelerated depreciation method?
What is an accelerated depreciation method?
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The discount on one unit principal for one unit of time is known as?
The discount on one unit principal for one unit of time is known as?
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The profit derived from a project or business enterprise without consideration of obligations to financial contributions or claims of other based on profit is known as?
The profit derived from a project or business enterprise without consideration of obligations to financial contributions or claims of other based on profit is known as?
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Duopoly is a market situation where there are?
Duopoly is a market situation where there are?
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What is a fund into which annual deposit of A are made in order to accumulate funds at N years in the future?
What is a fund into which annual deposit of A are made in order to accumulate funds at N years in the future?
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Which of these is NOT a method of depreciating plant equipment for accounting and engineering economic purposes?
Which of these is NOT a method of depreciating plant equipment for accounting and engineering economic purposes?
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A bond where the security behind it are the equipment of issuing corporation is known as?
A bond where the security behind it are the equipment of issuing corporation is known as?
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In the formula, $P=F(1+i)^{-N}$, the factor $(1+i)^{-N}$ is called?
In the formula, $P=F(1+i)^{-N}$, the factor $(1+i)^{-N}$ is called?
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What is a series of uniform accounts over an infinite period of time?
What is a series of uniform accounts over an infinite period of time?
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The decrease in the value of a certain property due to the gradual extraction of its content is called?
The decrease in the value of a certain property due to the gradual extraction of its content is called?
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Additional information on contract documents issued to bidders before the date of bidding is known as?
Additional information on contract documents issued to bidders before the date of bidding is known as?
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You are planning to buy stocks in a high growth company. Which of these ratios best indicates the company's growth potential?
You are planning to buy stocks in a high growth company. Which of these ratios best indicates the company's growth potential?
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Which of the following does NOT affect owner's equity?
Which of the following does NOT affect owner's equity?
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The flow back of profit plus depreciation from a given project is called?
The flow back of profit plus depreciation from a given project is called?
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The actual interest earned by a given principal is known as?
The actual interest earned by a given principal is known as?
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What refers to the need, want or desire for a product backed by the money to purchase it?
What refers to the need, want or desire for a product backed by the money to purchase it?
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The interest rate at which the present worth of cash flow on a project is zero, or the interest earned by an investment is known as?
The interest rate at which the present worth of cash flow on a project is zero, or the interest earned by an investment is known as?
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What type of bond whose security is a mortgage on certain specified assets of the corporation?
What type of bond whose security is a mortgage on certain specified assets of the corporation?
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What is the worth of the property which is equal to the original cost less the amount which has been charged to depreciation?
What is the worth of the property which is equal to the original cost less the amount which has been charged to depreciation?
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A type of bond issued jointly by two or more corporations is known as?
A type of bond issued jointly by two or more corporations is known as?
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What refers to the present worth of the probable future net earnings?
What refers to the present worth of the probable future net earnings?
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What is an artificial being created by operation of law, having the right of succession and the properties expressly authorized by the law or incident to its existence?
What is an artificial being created by operation of law, having the right of succession and the properties expressly authorized by the law or incident to its existence?
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What refers to the amount of money paid for the use of borrowed capital?
What refers to the amount of money paid for the use of borrowed capital?
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What denotes in the fall in the exchange rate of one currency in terms of the others, typically applied to the floating exchange rate?
What denotes in the fall in the exchange rate of one currency in terms of the others, typically applied to the floating exchange rate?
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What is an accounting term that represents an inventory account adjustment?
What is an accounting term that represents an inventory account adjustment?
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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?
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?
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The ratio of the net income to owner's equity is known as?
The ratio of the net income to owner's equity is known as?
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What is the feature of some bonds whereby the issuer can redeem it before it matures?
What is the feature of some bonds whereby the issuer can redeem it before it matures?
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What is sometimes called the functional depreciation?
What is sometimes called the functional depreciation?
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What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community?
What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community?
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Why the sinking fund method of computing depreciation is seldom used in the industry?
Why the sinking fund method of computing depreciation is seldom used in the industry?
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Which of the following depreciation methods cannot have a salvage value of zero?
Which of the following depreciation methods cannot have a salvage value of zero?
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What type of interest computed using the actual number of days in a given year, either 365 days or 366 days?
What type of interest computed using the actual number of days in a given year, either 365 days or 366 days?
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A method of depreciation where a fixed sum of money is regularly deposited at compound interest in a real or imaginary fund in order to accumulate an amount equal to the total depreciation of an asset at the end of the asset's estimated life is known as?
A method of depreciation where a fixed sum of money is regularly deposited at compound interest in a real or imaginary fund in order to accumulate an amount equal to the total depreciation of an asset at the end of the asset's estimated life is known as?
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What is normally used to compare alternatives that accomplish the same purpose but have unequal lives?
What is normally used to compare alternatives that accomplish the same purpose but have unequal lives?
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What refers to the amount of a product made available for supply?
What refers to the amount of a product made available for supply?
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What is measured of the average speed with which accounts receivables are collected?
What is measured of the average speed with which accounts receivables are collected?
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What type of stock that gives the owner the advantage of receiving cash dividends before common stockholders receive cash dividends?
What type of stock that gives the owner the advantage of receiving cash dividends before common stockholders receive cash dividends?
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What is a depreciation method where the value of an asset decreases at a constant rate?
What is a depreciation method where the value of an asset decreases at a constant rate?
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What is a kind of obligation which has no conditions attached?
What is a kind of obligation which has no conditions attached?
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What economic principle states that when one factor 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?
What economic principle states that when one factor 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?
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What is a type of bond to which are attached coupons indicating the interest due and the date when such interest is to be paid?
What is a type of bond to which are attached coupons indicating the interest due and the date when such interest is to be paid?
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The length of time that it takes for a project to fully recover its initial cost out of the net cash inflows that it generates is called?
The length of time that it takes for a project to fully recover its initial cost out of the net cash inflows that it generates is called?
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What refers to the residual value of a company's assets after all outside liabilities (shareholders excluded) have been allowed?
What refers to the residual value of a company's assets after all outside liabilities (shareholders excluded) have been allowed?
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What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus previous accumulated interest?
What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus previous accumulated interest?
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What refers to the buying or selling of goods between two or more markets in order to take profitable advantage of any differences in the prices quoted in these markets?
What refers to the buying or selling of goods between two or more markets in order to take profitable advantage of any differences in the prices quoted in these markets?
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A formal organization of producers that agree to coordinate prices and production is known as?
A formal organization of producers that agree to coordinate prices and production is known as?
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What is defined as the analysis and evaluation of the monetary consequences by using the theories and principle of economics to engineering applications, designs and projects?
What is defined as the analysis and evaluation of the monetary consequences by using the theories and principle of economics to engineering applications, designs and projects?
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What is a market situation whereby there is only one buyer of an item for which there is no good substitute?
What is a market situation whereby there is only one buyer of an item for which there is no good substitute?
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What are the two classifications of goods and services?
What are the two classifications of goods and services?
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Another term for Acid Test Ratio is?
Another term for Acid Test Ratio is?
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What is the provision in the contract that indicates the possible adjustment of material cost and labor cost?
What is the provision in the contract that indicates the possible adjustment of material cost and labor cost?
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Another term for Perfect Competition is?
Another term for Perfect Competition is?
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What is defined as the certificate of indebtedness of corporation usually for a period not less than 10 years and guaranteed by a mortgage on certain assets of a corporation?
What is defined as the certificate of indebtedness of corporation usually for a period not less than 10 years and guaranteed by a mortgage on certain assets of a corporation?
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What is a document that shows proof of legal ownership of a financial security?
What is a document that shows proof of legal ownership of a financial security?
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What specifies a definite portion of ownership of the capital of the corporation, all of each being alike in value?
What specifies a definite portion of ownership of the capital of the corporation, all of each being alike in value?
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What is the opposite of perfect competition?
What is the opposite of perfect competition?
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Study Notes
Simple Interest
- Defined as interest calculated only on the principal amount of a loan or principal.
Bond
- A financial security issued by businesses or corporations, or governments for borrowing long-term funds.
Annuity
- A series of uniform payments occurring at equal intervals of time.
Double Declining Balance & SYD Method
- Accelerated depreciation methods.
Net Scale Gross Margin
- Ratio of gross profit to gross revenue.
Price-Earning Ratio
- Ratio of market price per share to earnings per share.
Amortization
- Distribution of initial cost of an asset over its useful life, through periodic or irregular prearranged programs (e.g., depreciation or reduction)
Interest Rate
- Ratio of interest payment to the principal for a given unit of time (usually expressed as a percentage).
Effective Interest
- The true value of the interest rate calculated using compound interest equations for a one-year period.
Assets
- Cash and other resources owned by an enterprise used for operating purposes.
Quick Ratio/Acid-Test Ratio
- The ratio of liquid assets (assets that are easily converted to cash) to current liabilities.
Borrowed Capital
- Funds provided by others with a fixed interest rate that must be repaid at a specific time and place.
Commodity
- Raw material or primary product (e.g., cloth, wool, flour, coffee).
Essential Element of Ordinary Annuity
- First payment at the beginning of each period.
Physical Inventory
- Actual count and determination of inventory on hand on a specific date.
Straight-Line Depreciation
- Depreciation method where the cost of an asset is reduced equally over its estimated useful life.
Depreciation
- Reduction in value of an asset over its useful life, due to regular use or passage of time.
Moratorium
- Suspension or postponement of debt or interest payments for a specific period.
Accelerated Depreciation Method
- Depreciation method that reduces the value of an asset more quickly in the early years of its life than a straight line method.
Rate Discount
- Discount on a principal unit for a unit of time.
Economic Return
- Profit derived from a project or enterprise, not including obligations or financial contributions.
Duopoly
- Market situation with two sellers.
Annuity
- Fund into which annual deposits accumulate over a period.
Double-Entry Method
- Accounting method that records each transaction twice, ensuring equality of debits and credits.
Lien
- A security interest by a business/corporation/government in their property.
Perpetuity
- Series of uniform accounts over an infinite period.
Net Income to Owner's Equity
- Ratio of net income to owner's equity.
Depreciation
- Gradual decrease in the value of a property.
Bid Bulletin
- Additional information on contract documents.
Price-Earning Ratio
- Indicator of company growth potential.
License to Start Operation
- Factor influencing owner's equity.
Cash Flow
- Amount of profit earned from a given project including depreciation expense.
Effective Interest Rate
- The actual interest earned on a given principal that is consistent throughout.
Demand
- The need, want, or desire for a product, supported with the funds to purchase the product.
Rate of Return
- Interest earned on an investment.
Mortgage Bond
- Bond secured by a mortgage on specific assets.
Book Value
- Original cost of property less depreciation.
Joint Bond
- Bond issued by two or more corporations jointly.
Earnings Value
- Present worth of future net earnings.
Corporation
- Artificial business entity granted rights to operate and exist under law.
Interest
- Amount paid for the use of borrowed funds.
Currency Depreciation
- decrease in the value of a currency.
Cost Accounting
- Accounting for costs associated with products (used for management).
Buffer Stock
- Inventory held by a trade body or government to stabilize prices.
Return of Investment Ratio
- Ratio of net income to owners equity.
Callability
- Bond feature allowing issuer to redeem before maturity.
Adolescence
- Functional depreciation.
Benefit-Cost Ratio
- Used for evaluating benefits and costs of a project with a specific impact on the community.
Initial Depreciation
- Reasons for using the sinking fund method of computing depreciation.
Declining Balance Method
- Depreciation method that does not use the zero salvage value.
Simple Interest
- Interest computed using the actual number of days.
Sinking Fund Method
- Depreciation method that sets aside money over time for replacement of assets, using compound interest.
Annual Cost Method
- Used to compare alternative projects with unequal lives.
Supply
- Amount of product available
Receivables Turnover
- Speed of collecting accounts receivable.
Preferred Stock
- Stock that gives the holder priority in receiving dividends compared to common stock.
Declining Balance
- Depreciation where asset value decreases at a constant rate (usually an accelerated rate).
Gratuitous Obligation
- Obligation without attached conditions (e.g., non-compensatory obligation).
Law of Diminishing Returns
- Increasing production factors with a fixed input will result in less output than the proportional increase in factors.
Coupon Bond
- Bond with coupons stipulating interest payment dates.
Payback Period
- Time needed for an investment to recover initial cost.
Equity
- Remaining interest in a company after liabilities are paid off.
Compound Interest
- Interest calculated on both the principal and accumulated interest.
Arbitrage
- Buying and selling of goods in different markets to profit from price differences.
Cartel
- Organization of producers who agree to coordinate prices and production.
Economic Analysis
- Evaluation of monetary consequences using economic principles.
Monopsony
- Market with one buyer of a product for which there are no substitutes.
Consumer & Producer
- Classifications of goods and services, based on the end consumer.
Escalatory Clause
- Contract provision allowing adjustment of costs like labor or material cost.
Atomic Competition
- Another term for perfect competition.
Bond
- Certificate of corporate indebtedness.
Coupon
- Document that proves ownership of a financial instrument.
Common Stock
- Specifies portion of corporate ownership.
Monopoly
- Opposite of perfect competition.
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Description
Test your knowledge on key finance concepts such as simple interest, bonds, annuities, and depreciation methods. This quiz covers essential financial ratios and calculations that are crucial for understanding financial management. Perfect for students or anyone looking to refresh their finance skills.
