MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
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 |
| Answer» D. Operating cost | |
| 2. |
Both architect and engineer make use of the cost estimate of the project: |
| A. | For site selection |
| B. | For designing of the project |
| C. | For choosing alternatives |
| D. | All of these |
| Answer» E. | |
| 3. |
What refers to the goods and services that are desired by human and will be acquired only after all the needs have been satisfied? |
| A. | Producer products |
| B. | Consumer products |
| C. | Luxury |
| D. | Necessity |
| Answer» E. | |
| 4. |
What are the common methods of computing depletion charge? |
| A. | Rational method and irrational method |
| B. | Conservative method and conventional method |
| C. | Unit method and percentage method |
| D. | Discrete method and depletion allowance method |
| Answer» D. Discrete method and depletion allowance method | |
| 5. |
Current ratio is: |
| A. | Current assets/Current liabilities |
| B. | (Current assets + loans)/Current liabilities |
| C. | (Current assets + loans advances)/Current liabilities |
| D. | None of these |
| Answer» B. (Current assets + loans)/Current liabilities | |
| 6. |
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 |
| Answer» C. Standard cost | |
| 7. |
The key to profitable operation for project cost control, is: |
| A. | To keep the project cost equal to original cost estimate |
| B. | To keep the project cost equal to subsequent construction budget |
| C. | To keep the project cost within the cost budget and knowing when and where job costs are deviating |
| D. | None of these |
| Answer» D. None of these | |
| 8. |
In a cash flow series: |
| A. | Uniform gradient signifies that an income or disbursement changes by the same amount in each interest period |
| B. | Either an increase or decrease in the amount of a cash flow is called the gradient |
| C. | The gradient in the cash flow may be positive or negative |
| D. | All of these |
| Answer» E. | |
| 9. |
The more critical (or severe) test of the firm's liquidity can be judged by: |
| A. | Liquidity ratio |
| B. | Current ratio |
| C. | Acid-Test (or Quick) ratio |
| D. | Debts ratio |
| Answer» D. Debts ratio | |
| 10. |
Capitalized cost of any structure or property is computed by which formula? |
| A. | First cost + interest of first cost |
| B. | Annual cost – interest of first cost |
| C. | First cost + cost of perpetual maintenance |
| D. | First cost + salvage value |
| Answer» D. First cost + salvage value | |
| 11. |
Which is true about corporation? |
| A. | It is worse type of business organization. |
| B. | The minimum number of incorporators to start a corporation is three. |
| C. | Its life is dependent on the lives of the incorporators. |
| D. | The stock holders of the corporation are only liable to the extent of their investments. |
| Answer» E. | |
| 12. |
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 |
| Answer» B. Rate of interest | |
| 13. |
What refers to the residual value of a company’s assets after all outside liabilities (shareholders excluded) have been allowed for? |
| A. | Dividend |
| B. | Equity |
| C. | Return |
| D. | Par value |
| Answer» C. Return | |
| 14. |
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 |
| Answer» D. Intangible asset | |
| 15. |
In a cash-flow diagram: |
| A. | Time 0 is considered to be the present |
| B. | Time 1 is considered to be the end of time period 1 |
| C. | A vertical arrow pointing up indicates a positive cash flow |
| D. | All of these |
| Answer» E. | |
| 16. |
The product of CAF (S P) and PWF (S P) is: |
| A. | 1/2 |
| B. | 1 |
| C. | 1/3 |
| D. | 1/4 |
| Answer» C. 1/3 | |
| 17. |
What refers to the amount of a product made available for sale? |
| A. | Supply |
| B. | Demand |
| C. | Product |
| D. | Good |
| Answer» B. Demand | |
| 18. |
What is another term for “acid-test ratio”? |
| A. | Current ratio |
| B. | Quick ratio |
| C. | Profit margin ratio |
| D. | Price-earnings ratio |
| Answer» C. Profit margin ratio | |
| 19. |
What is another term for “current assets”? |
| A. | Fixed assets |
| B. | Non-liquid assets |
| C. | Liquid assets |
| D. | Ccash |
| Answer» D. Ccash | |
| 20. |
What is the reduction in the money value of capital asset is called? |
| A. | Capital expenditure |
| B. | Capital loss |
| C. | Loss |
| D. | Deficit |
| Answer» C. Loss | |
| 21. |
Keeping in view, the feasibility order of magnitude, the preliminary, conceptual or budget estimates, are prepared by: |
| A. | Architect/engineer |
| B. | Construction manager |
| C. | Owner himself/herself |
| D. | Construction manager |
| Answer» D. Construction manager | |
| 22. |
Using factor method, the depletion at any given year is equal to:%! |
| A. | Initial cost of property times number of unit sold during the year divided by the total units in property |
| B. | Initial cost of property divided by the number of units sold during the year |
| C. | Initial cost of property times number of units sold during the year |
| D. | Initial cost of property divided by the total units in property |
| Answer» B. Initial cost of property divided by the number of units sold during the year | |
| 23. |
What refers to the need, want or desire for a product backed by the money to purchase it?%! |
| A. | Supply |
| B. | Demand |
| C. | Product |
| D. | Good |
| Answer» C. Product | |
| 24. |
Perfect monopoly exists only if:%! |
| A. | the single vendor can prevent the entry of all other vendors in the market |
| B. | the single vendor gets the absolute franchise of the product |
| C. | the single vendor is the only one who has the permit to sell |
| D. | the single vendor is the only one who has the knowledge of the product |
| Answer» B. the single vendor gets the absolute franchise of the product | |
| 25. |
What is the reduction in the money value of capital asset is called?%! |
| A. | Capital expenditure |
| B. | Capital loss |
| C. | Loss |
| D. | Deficit |
| Answer» C. Loss | |
| 26. |
Liquidity ratios are used:%! |
| A. | To measure a firm’s ability to meet short-cut obligations |
| B. | To compare short term obligations to short-term resources available to meet these obligations |
| C. | To obtain much insight into the present cash solvency of the firm and the firm |
| D. | All of these |
| Answer» E. | |
| 27. |
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 |
| Answer» D. Franchise value | |
| 28. |
“Under conditions of perfect competition, the price at which any given product will be supplied and purchased is the price that will result in the supply and the demand being equal.” This statement is known as the:%! |
| A. | Law of diminishing return |
| B. | Law of supply |
| C. | Law of demand |
| D. | Law of supply and demand |
| Answer» E. | |
| 29. |
Capitalized cost of a project is also known as ______.%! |
| A. | Infinite cost |
| B. | Life cycle cost |
| C. | Life cost |
| D. | Project cost |
| Answer» C. Life cost | |
| 30. |
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 |
| Answer» C. Earning value | |
| 31. |
The project contractor relies on the cost of the estimate:%! |
| A. | For submission of a competitive bid for a lump-sum contract |
| B. | For a unit price contract |
| C. | For preparation of a definitive estimate to help negotiate contract |
| D. | All of these |
| Answer» E. | |
| 32. |
What is the term for an annuity with a fixed time span?%! |
| A. | Ordinary annuity |
| B. | Perpetuity |
| C. | Annuity certain |
| D. | Annuity due |
| Answer» D. Annuity due | |
| 33. |
What is normally used to compare alternatives that accomplish the same purpose but have unequal lives?%! |
| A. | Capitalized cost method |
| B. | Present worth method |
| C. | Annual cost method |
| D. | MARR |
| Answer» D. MARR | |
| 34. |
What do you call any particular raw material or primary product such as cloth, wool, flour, coffee, etc.?%! |
| A. | Utility |
| B. | Necessity |
| C. | Commodity |
| D. | Stock |
| Answer» D. Stock | |
| 35. |
*/*_What is the type of annuity where the payments are made at the beginning of the each period starting from the first period?? |
| A. | Ordinary annuity |
| B. | Perpetuity |
| C. | Annuity due |
| D. | Deferred annuity |
| Answer» D. Deferred annuity | |
| 36. |
*/*_One banker’s year is equivalent to ______ days.? |
| A. | 300 |
| B. | 360 |
| C. | 365 |
| D. | 366 |
| Answer» C. 365 | |
| 37. |
*/*_Which one of the following is included in financial ratios of the firm?? |
| A. | Profitability ratio |
| B. | Liquidity ratio |
| C. | Turnover ratio |
| D. | All of these |
| Answer» E. | |
| 38. |
*/*_What is defined as an entity which makes product, good or services available to buyer or consumer in exchange of monetary consideration?? |
| A. | Seller |
| B. | Manufacturer |
| C. | Producer |
| D. | Buyer or consumer |
| Answer» D. Buyer or consumer | |
| 39. |
*/*_What type of bond which can be redeemed before maturity date?? |
| A. | Preferred bond |
| B. | Registered bond |
| C. | Incorporators bond |
| D. | Callable bond |
| Answer» E. | |
| 40. |
*/*_What represents the share of participation in business organizations?? |
| A. | Franchise |
| B. | Partnership |
| C. | Stock |
| D. | Corporation |
| Answer» D. Corporation | |
| 41. |
*/*_In computing depreciation of an equipment, which of the following represents the first cost?? |
| A. | The original purchase price and freight charges |
| B. | Installation expenses |
| C. | Initial taxes and permit fees |
| D. | All of the above |
| Answer» E. | |
| 42. |
*/*_What do you call any particular raw material or primary product such as cloth, wool, flour, coffee, etc.?? |
| A. | Utility |
| B. | Necessity |
| C. | Commodity |
| D. | Stock |
| Answer» D. Stock | |
| 43. |
*/*_What is normally used to compare alternatives that accomplish the same purpose but have unequal lives?? |
| A. | Capitalized cost method |
| B. | Present worth method |
| C. | Annual cost method |
| D. | MARR |
| Answer» D. MARR | |
| 44. |
*/*_Each financial ratio is generally compared by? |
| A. | A past ratio calculated from the past financial standard of the firm |
| B. | A ratio developed by using the projected financial statement of the firm |
| C. | A ratio of some selected firms most progressive and successful at the point of consideration |
| D. | All of these |
| Answer» E. | |
| 45. |
*/*_Cash money and credit necessary to establish and operate an enterprise are generally called ______.? |
| A. | Capital |
| B. | Funds |
| C. | Assets |
| D. | Liabilities |
| Answer» B. Funds | |
| 46. |
*/*_Gross margin is the ratio of the gross profit to ______.? |
| A. | Net sale |
| B. | Owner’s equity |
| C. | Inventory turnover |
| D. | Quick assets |
| Answer» B. Owner‚Äö√Ñ√¥s equity | |
| 47. |
*/*_What is the reduction in the money value of capital asset is called?? |
| A. | Capital expenditure |
| B. | Capital loss |
| C. | Loss |
| D. | Deficit |
| Answer» C. Loss | |
| 48. |
*/*_What refers to the goods and services that are desired by human and will be acquired only after all the needs have been satisfied?? |
| A. | Producer products |
| B. | Consumer products |
| C. | Luxury |
| D. | Necessity |
| Answer» E. | |
| 49. |
*/*_The interest calculated on the basis of 365 days a year, is known as:? |
| A. | Interest |
| B. | Ordinary simple interest |
| C. | Exact simple interest |
| D. | None of these |
| Answer» D. None of these | |
| 50. |
*/*_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 |
| Answer» C. P 153.89 | |