Related Mcqs:

1. A machine costs of P 8,000 and an estimated life of 10 years with a salvage value of P 500. What is its book value after 8 years using straight line method ?

   A. P 2,000.00
   B. P 2,100.00
   C. P 2,200.00
   D. P 2,300.00

2. 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

3. The functional depreciation is sometimes called ____________________?

   A. Demand depreciation
   B. Adolescence
   C. Life depreciation
   D. Failure depreciation

4. The profit derived from a project or business enterprise without consideration of obligations to financial contributors and claims of others based on profit is known as _____________________?

   A. Yield
   B. Economic return
   C. Earning value
   D. Gain

5. A mathematical expression also known as the present value of annuity of one is called ____________________?

   A. Load factor
   B. Demand factor
   C. Sinking fund factor
   D. Present worth factor

6. __________________ is the element of value which a business has earned through the favorable consideration and patronage of its costumers arising from its well known and well conducted policies and operations?

   A. Status company
   B. Big income
   C. Known owners
   D. Goodwill

7. The true value of interest rate computed by equations for compound interest for a 1 year period is known as __________________?

   A. Expected return
   B. Nominal interest
   C. Effective interest
   D. Economic return

8. The unrecovered depreciation which results due to poor estimates as to the life of the equipment is called _____________________?

   A. Sunk cost
   B. Economic life
   C. In-place value
   D. Annuity

9. Cash money and credit necessary to establish and operate an enterprise are generally called _____________________?

   A. Capital
   B. Funds
   C. Assets
   D. Liabilities

10. The process of determining the value or worth of a physical property for specific reason is called ____________________?

    A. Investment
    B. Valuation
    C. Economy
    D. Depletion