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1) Which of the following is an example of intangible asset ? a. Cash b. Investment in subsidiary companies c. Furnitures d. Patents
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2) 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
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3) What refers to the interest rate at which the present work of the cash flow on a project is zero of the interest earned by an investment ? a. Economic return b. Yield c. Rate of return d. Return of investment
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4) What is another term for “current assets” ? a. Fixed assets b. Non-liquid assets c. Liquid assets d. Cash
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5) What is an accounting term that represents an inventory account adjustment ? a. Cost of goods sold b. Cost accounting c. Standard cost d. Overhead cost
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6) What is the change in cost per unit variable change called ? a. Variable cost b. Incremental cost c. Fixed cost d. Supplemental cost
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7) What is used to record historical financial transactions ? a. Bookkeeping system b. Ledger system c. Balance check d. General journal system
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8) What is a secondary book of accounts, the information of which is obtained from the journal is called ? a. Balanced sheet b. Ledger c. Worksheet d. Trial balance
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9) The original record of a business transaction is recorded in this book_____________? a. Work book b. Journal c. Ledger d. Account book
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10) All the proceeds which are received by the business as a result of the sale of goods is called _________________? a. Net income b. Gross income c. Net revenue d. Total sales
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11) All are classified under direct labor expenses EXCEPT one. Which one ? a. Inspection cost b. Testing cost c. Assembly cost d. Supervision cost
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12) What is a measure of the average speed with which accounts receivable are collected ? a. Current ratio b. Quick ratio c. Acid test ratio d. Receivable turnover
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13) The ratio of the net income before taxes to net sales is called __________________? a. Current ratio b. Inventory turnover c. Profit margin ratio d. Price-earnings ratio
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14) What do you call a one-time credit against taxes ? a. Due credit b. Tax credit c. Credible credit d. Revenue credit
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15) What is used when a quick estimate of the doubling time for the invested money is needed ? a. Rule of 48 b. Rule of 36 c. Rule of 24 d. Rule of 72
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16) 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
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17) What is the reduction in the money value of capital asset is called ? a. Capital expenditure b. Capital loss c. Loss d. Deficit
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18) What refers to the negotiable claim issued by a bank in lien of a term deposit ? a. Time deposit b. Bond c. Capital gain certificate d. Certificate of deposit
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19) What denotes in the fall in the exchange rate of one currency in terms of the others? This term is usually applies to the floating exchange rate______________? a. Currency appreciation b. Currency depreciation c. Currency devaluation d. Currency float
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20) The deliberate lowering of the price of a nation’s currency in terms of the accepted standard (Gold, American dollar or the British pound) is known as ____________________? a. Currency appreciation b. Currency depreciation c. Currency devaluation d. Currency float
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