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 ?

Related Mcqs:

1. What bond whose security is a mortgage on certain specified assets of the corporation ?

   A. Registered bond
   B. Collateral trust bond
   C. Mortgage bond
   D. Debenture bond

2. What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled ?

   A. Authorized capital stock
   B. Preferred stock
   C. Incorporator stock
   D. Common stock

3. 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 ?

   A. T-bills
   B. Securities
   C. Bond
   D. Bank notes

4. What is defined as the current assets minus inventories and prepaid expenses ?

   A. Profit margin ratio
   B. Price-earnings ratio
   C. Return of investment ratio
   D. Quick ratio

5. A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due ?

   A. P 3,260.34
   B. P 3,280.34
   C. P 3,270.34
   D. P 3,250.34

6. An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method____________________?

   A. P 3,279.27
   B. P 3,927.27
   C. P 3,729.27
   D. P 3,792.72

7. What is defined as the reduction of the value of certain natural resources such as mines, oil, timber, quarries, etc. due to the gradual extraction of its contents ?

   A. Depletion
   B. Inflation
   C. Depreciation
   D. Deflation

8. Mr. Jun Ramos was granted a loan of P20,000 by his employer Excel First Review and Training Center, Inc. with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note?

   A. P18,000
   B. P18,900
   C. P19,000
   D. P19,100

9. ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method ?

   A. 7 eyars
   B. 8 years
   C. 9 years
   D. 10 years

10. Which is true about corporation ?

    A. It is worse type of business organization.
    B. The minimum number of incorporators to start a corporation is three.
    C. Its life is dependent on the lives of the incorporators.
    D. The stock holders of the corporation are only liable to the extent of their investments.