Simple Interest, Finance, Business, and Accounting - PDF

SIMPLE INTEREST WHAT IS DEFINED AS THE INTEREST ON A LOAD OR PRINCIPAL THAT IS BASED ONLY ON THE ORIGINAL AMOUNT OF THE LOAN OR PRINCIPAL? BOND WHAT IS DEFINED AS A FINANCIAL SECURITY NOTE ISSUED BY BUSINESS OR CORPORTION AND BY THE GOVERNMENT AS A MEANS OF BORROWING LONG-TERM FUND? ANNUITY THE TE...

SIMPLE INTEREST WHAT IS DEFINED AS THE INTEREST ON A LOAD OR PRINCIPAL THAT IS BASED ONLY ON THE ORIGINAL AMOUNT OF THE LOAN OR PRINCIPAL? BOND WHAT IS DEFINED AS A FINANCIAL SECURITY NOTE ISSUED BY BUSINESS OR CORPORTION AND BY THE GOVERNMENT AS A MEANS OF BORROWING LONG-TERM FUND? ANNUITY THE TERM USED TO EXPRESS THE SERIES OF UNIFORM PAYMENTS OCCURING AT EQUAL INTERVAL OF TIME IS? DOUBLE DECLINING BALANCE METHOD AND SYD METHOD WHICH OF THE FOLLOWING IS AN ACCELERATED DEPRECIATION METHOD? NET SCALE GROSS MARGIN IS THE RATIO OF THR GROSS PROFIT TO DISCOUNT THE DIFFERENCE BETWEEN THE PRESENT WORTH AND THE NET WORTH AT SOME FUTURE TIME IS? PRICE-EARNING RATIO WHAT IS THE RATION OF THE MARKET PRICE PER SHARE TO EARNINGS PER SHARE CALLED AMORTIZATION AS APPLIED TO CAPITALIZED ASSEST, 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? INTEREST RATE 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? EFFECTIVE INTEREST The true value of interest rate computed by equations for compound interest for a 1 year period is known as ASSETS CASH MONEY CREDIT NECESSARY TO ESTABLISH AND OPERATE AN ENTERPRISE QUICK RATIO WHAT IS THE OTHER TERM FOR ACID-TEST RATIO? BORROWED CAPITAL 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. COMMODITY WHAT DO YOU CALL ANY PARTICULAR RAW MATERIAL OR PRIMARY PRODUCT SUCH AS CLOTH, WOOL, FLOUR , COFFEE, ETC. The first payment is made at the beginning of each period. WHICH IS NOT AN ESSENTIAL ELEMENT OF ORDINARY ANNUITY? PHYSICAL INVENTORY Consists of the actual counting or determination of the actual quantity of the materials on hand as of a given date 360 Under ordinary simple interest, how many days in one year? STRAIGHT LINE AN EQUIPMENT WHICH COST 200000 HAS A USEFUL LIFE OF 8 YEARS WITH A SALVAGE VALUE OF 25000 AT THE END OF ITS USEFUL LIFE. IF THE DEPRECIATION AT THE FIRST YEAR US 21 875, WHAT METHOD IS USED IN THE CALCULATION OF DEPRECIATION DEPRECIATION WHAT IS DEFINED AS THE REDUCTION OR FALL OF THE VALUE OF AN ASSET DUE TO CONSTANT USE AND PASSAGE OF TIME MORATORIUM THE SUSPENSION OR REPAYMENT OF DEBT OR INTEREST FOR A SPECIFIED PERIOD OF TIME IS CALLED? It is one that calculates a depreciation amount greater than a straight line amount WHAT IS AN ACCELERATED DEPRECIATION METHOD RATE DISCOUNT the discount on one unit principal for one unit of time ECONOMIC RETURN the profit derived from a project or business enterprise without consideration of obligations to financial contributions or claims of other based on profit. FEW SELLERS AND MANY BUYERS Duopoly is a market situation where there is/are: ANNUITY A FUND INTO WHICH ANNUAL DEPOSIT OF A ARE MADE IN ORDER TO ACCUMULATE FUND F AT N YEARS IN THE FUTURE DOUBLE-ENTRY METHOD WHICH ONE IS NOT A METHOD OF DEPRECIATING PLANT EQUIPMENT FOR ACCOUNTING ANF\]D ENGINEERING ECONOMICS PURPOSES? LIEN A BOND WHERE THE SECURITY BEHIND IT ARE THE EQUIPMENT OF ISSUING CORPORATION SINGLE PAYMENT PRESENT WORTH FACTOR IN THE FORMULA, P=F(1+I)\^-N, THE FACTOR (1+I)\^-N IS CALLED THE PERPETUITY A SERIES OF UNIFORM ACCOUNTS OVER AN INFINITE PERIOD OF TIME. NET INCOME TO OWNER\'S EQUITY Return on investment ratio is the ratio of the : DEPRECIATION THE DECREASE IN THE VALUE OF A CERTAIN PROPERTY DUE TO THE GRADUAL EXTRACTION OF ITS CONENT IS CALLED? BID BULLETIN Additional information on contract documents issued to bidders before date of bidding. PRICE-EARNING RATIO YOU ARE PLANNING TO BUY STOCKS IN A HIGH GROWTH COMPANY. WHICH OF THE FOLLOWING RATIOD BEST INDICATES THE COMPANY\'S GROWTH POTENTIAL? LICENSE TO START OPERATION WHICH OF THE FOLLOWING DOES NOT AFFECT OWNER\'S EQUITY? CASH FLOW THE FLOW BACK OF PROFIT PLUS DEPRECIATION FROM A GIVEN PROJECT IS CALLED? EFFECTIVE INTEREST THE ACTUAL INTEREST EARNED BY A GIVEN PRINCIPAL IS KNOWN AS? DEMAND WHAT REFERS TO THE NEED, WANT OR DESIRE FOR A PRODUCT BACKED BY THE MONEY TO PURCHASE IT? RATE OF RETURN THE INTEREST RATE AT WHICH THE PRESENT WORTH OF CASH FLOW ON A PROJECT IS ZERO, OR THE INTEREST EARNED BY AN INVESTMENT MORTAGE BOND TYPE OF BOND WHOSE SECURITY IS A MORTSGE ON CERTAIN SPECIFIED ASSETS OF THE CORPORATION BOOK VALUE IT IS THE WORTH OF THE PROPERTY WHICH IS EQUAL TO THE ORGINAL COST LESS THE AMOUNT WHICH HAS BEEN CHARGED TO DEPRECIATION JOINT BOND A type of bond issued jointly by two or more corporations. EARNING VALUE What refers to the present worth of the probable future net earnings ? CORPORATION 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 INTEREST WHAT REFERS TO THE AMOUNT OF MONEY PAID FOR THE USE OF BORROWED CAPITAL CURRENCY DEPRECIATION 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. COST ACCOUNTING AN ACCOUNTING TERM THAT REPRESENTS AN INVENTORY ACCOUNT ADJUSTMENT. BUFFER STOCK IT IS A STOCK OF A PRODUCT WHICH IS HELD BY A TRADE BODY OR GOVERNMENR AS A MEANS OF REGULATING THE PRICE OF THAT PRODUCT. RETURN OF INVESTMENT RATIO What is the ratio of the net income to owner\'s equity? CALLABILITY What is the feature of some bonds whereby the issuer can redeem it before it matures ? ADOLESENCE THE FUNCTIONAL DEPRECIATION IS SOMETIMES CALLED BENEFIT-COST RATIO What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community ? THE INITIAL DEPRECIATION IS LOW What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry ? It can be handed down from one generation of partners to another. WHICH IS TRUE ABOUT PARTNERSHIP? LIQUIDITY Ability to convert assets to cash quickly IS KNOWN? Assets= Liabilities + Owners Equity What is the basic accounting equation? SOLVENCY THE ABILITY TO MEET DEBTS AS THEY BECOME DUE IS KNOWN AS? SINKING FUND METHOD In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes? FUNCTIONAL DEPRECIATION What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render ? SECOND-HAND VALUE Salvage value is sometimes known as SUNK COST THE UNRECOVERED DEPRECIATION WHICH RESULTS DUE TO POOR ESTIMATES AS TO THE LIFE OF THE EQUIPMENT IS CALLED The partnership assets ( excluding the partners personal assets only will be used to pay the liabilities IN CASE OF BANKCRUPTCY OF A PARTNERSHIP Sole Proprietorship WHAT IS THE SIMPLEST FORM OF BUSINESS ORGANIZATION? LEDGER A SECONDARY BOOK OF ACCOUNTS, THE INFORMATION OF WHICH IS OBTAINED FROM THE JOURNAL Unit method and percentage method What are the common methods of computing depletion charge ? BOND DEFINED AS FINANCIAL SECURITY NOTE ISSUED BY BUSINESS OR CORPOARTION AND BY THE GOVERNMENT AS A MEANS OF BORROWING LONG-TERM FUND LIFE CYCLE COST Capitalized cost of a project is also known as STRAIGHT LINE METHOD A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset. MONOPOLY WHAT IS THE OPPOSITE OF PERFECT COMPETITION? BORROWED CAPITAL 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. LIFE COST COST CAPITALIZED COST OF A PROJECT IS ALSO KNOWN AS STRAIGHT LINE METHOD A METHOD OF DEPRECIATION WHEREBY THE AMOUNT TO RECOVER IS SPREAD UNIFORMLY OVER THE ESTIMATED LIFE OF THE ASSET IN TERMS OF THE PERIODS OR UNITS OF OUTPUT. SINGLE PAYMENT PRESENT WORTTH FACTOR IN THE FORMULA, P=F(1+I)\^(-N), THE FACTOR (1+I)\^(-N) IS CALLED DEFLATION WHAT REFERS TO THE REDUCTION IN THE LEVEL OF A NATIONAL INCOME AND OUTPUT USUALLY ACCOMPANNIED BY A FALL IN THE GENERAL PRICE LEVEL? The initial depreciation is low. What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry ? DECLINING BALANCE METHOD Which of the following depreciation methods cannot have a salvage value of zero? Exact Simple Interest TYPE OF INTEREST COMPUTED USING THE ACTUAL NUMBER OF DAYS IN A GIVEN YEAR, EITHER 365 DAYS OR 366 DAYS SINKING FUND METHOD 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. Annual-Cost Method What is normally used to compare alternatives that accomplish the same purpose but have unequal lives ? SUPPLY WHAT REFERS TO THE AMOUNT OF A PRODUCT MADE AVAILABLE FOR RECEIVABLES TURNOVER WHAT IS MEASURED OF THE AVERAGE SPEED WITH WHICH ACCOUNTS RECIEVABLES ARE COLLECTED? PREFFERED STOCK a type of stock that gives the owner the advantage of receiving cash dividends before common stockholders receive cash dividends DECLINING BALANCE A DEPRECIATION METHOD WHERE THE VALUE OF AN ASSET DECREASES AT A CONSTANT RATE GRATUITOUS KIND OF OBLIGATION WHICH HAS NO CONDITIONS ATTACHED law of diminishing returns 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. COUPON BOND A type of bond to which are attached coupons indicating the interest due and the date when such interest is to be paid PAYBACK PERIOD 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. EQUITY WHAT REFERS TO THE RESIDUAL VALUE OF A COMPANY\'S ASSETS AFTER ALL OUTSIDE LIABILITIES ( SHAREHOLDERS EXCLUDED) HAVE BEEN ALLOWED COMPOUND 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? ARBITRAGE WHAT REFERS TO THE BUYING OR SELLING OF GOODS BETWEEN TWO OR MORE MARKERS IN ORDER TO TAKE PROFITABLE ADVANTAGE OF ANY DIFFERNCES IN THE PRICES QUOTED IN THESE MARKETS CARTEL a formal organization of producers that agree to coordinate prices and production ECONOMIC ANALYSIS IT IS DEFINED AS THE ANALYSIS AND EVALUATION OF THE MONETARY CONSEQUENCES BY USIING THE THEORIES AND PRINCIPLE OF ECONOMICS TO ENGINEERING APPLICATIONS, DESIGNS AND PROJECTS. MONOPSY A MARKET SITUATION WHEREBY THERE IS ONLY ONE BUYER OF AN ITEM FOR WHICH THERE IS NO GOOD SUBSTITUTE CONSUMER AND PRODUCER The two classifications of goods and services. QUICK RATIO ANOTHER TERM FOR ACID TEST RATIO ESCALATORY CLAUSE The provision in the contract that indicates the possible adjustment of material cost and labor cost. ATOMISITIC COMPETITION WHAT IS ANOTHER TERM FOR PERFECT COMPETETION BOND IT IS DEFINED AS THE CERTIFICATE OF INDEBTEDNESS OF CORPORATION USUALLY FOR A PERIOD NOT LESS THAN 10 YEARS AND GUARANTEED BY A MORTAGE ON CERTAIN ASSETS OF A CORPORATION COUPON A DOCUMENT THAT SHOWS PROOF OF LEGAL OWNERSHIP OF A FINANCIAL SECURITY. COMMON STOCK SPECIFIES A DEFINITE PORTION OF OWNERSHIP OF THE CAPITAL OF THE CORPORATION , ALL OF EACH BEING ALIKE IN VALUE. MONOPOLY WHAT IS THE OPPOSITE OF PERFECT COMPETITION