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

Related Mcqs:

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

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

2. A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000?

   A. 28.33 %
   B. 29.17 %
   C. 30.12 %
   D. 30.78 %

3. What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn ?

   A. Present worth factor
   B. Interest rate
   C. Time value of money
   D. Yield

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 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 ?

   A. Book value
   B. Market value
   C. Fair value
   D. Franchise value

7. 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

8. What refers to the amount of money paid for the use of borrowed capital ?

   A. Interest
   B. Rate of interest
   C. Simple interest
   D. Principal

9. Which of the following is an example of intangible asset ?

   A. Cash
   B. Investment in subsidiary companies
   C. Furnitures
   D. Patents

10. Lands, buildings, plants and machineries are example of what type of asset ?

    A. Current asset
    B. Trade investment asset
    C. Fixed asset
    D. Intangible asset