What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties ?

Related Mcqs:

1. What market situation exists where there is only one buyer and only one seller ?

   A. Monopsony B. Monopoly C. Bilateral monopsony D. Bilateral monopoly...

2. The amount of property in which a willing buyer to a willing seller for the property when neither one is under the compulsion to buy nor to sell is called __________________?

   A. Fair value B. Market value C. Good will value D. Book value...

3. 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...

4. What is defined as the reduction or fall of the value of an asset due to constant use and passage of time ?

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

5. 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...

6. What is the increase in the money value of a capital asset is called?

   A. Profit B. Capital gain C. Capital expenditure D. Capital stock...

7. What is the reduction in the money value of capital asset is called ?

   A. Capital expenditure B. Capital loss C. Loss D. Deficit...

8. A VOM has a selling price of P 400. If its selling price is expected to decline at a rate of 10% per annum due to obsolescence, what will be its selling price after 5 years ?

   A. P 222.67 B. P 212.90 C. P 236.20 D. P 231.56...

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

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