A. Asset recovery
B. Depreciation recovery
C. Period recovery
D. After-tax recovery
Related Mcqs:
- What refers to the present worth of cost associated with an asset for an infinite period of time ?
A. Annual cost
B. Increment cost
C. Capitalized cost
D. Operating cost - 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 - In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year ?
A. Straight line method
B. Sinking fund method
C. Sum-of-year digit method
D. Declining balance method - 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 - In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset ?
A. Straight line method
B. Sinking fund method
C. Sum-of-year digit method
D. Declining balance method - What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render ?
A. Functional depreciation
B. Design depreciation
C. Physical depreciation
D. Demand depreciation - What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results ?
A. Functional depreciation
B. Design depreciation
C. Physical depreciation
D. Demand depreciation - As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called ___________________?
A. Annuity
B. Amortization
C. Capital recovery
D. Annuity factor - What is the present worth of two P 100 payments at the end of the third year and fourth year? The annual interest rate is 8%?
A. P 150.56
B. P 152.88
C. P 153.89
D. P 151.09 - What is the present worth of a year annuity paying P 3,000.00 at the end of each year, with interest at 8% compounded annually ?
A. P 7,654.04
B. P 7,731.29
C. P 7,420.89
D. P 7,590.12
