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 market situation in which any given product is supplied by a very large number of vendors and there is no restriction against additional vendors from entering the market? |
| A. | Perfect competition |
| B. | Oligopoly |
| C. | Oligopsony |
| D. | Monopoly |
| Answer» B. Oligopoly | |
| 2. |
Which is true about partnership? |
| A. | It has a perpetual life. |
| B. | It will be dissolved if one of the partners ceases to be connected with the partnership. |
| C. | It can be handed down from one generation of partners to another. |
| D. | Its capitalization must be equal for each partner. |
| Answer» D. Its capitalization must be equal for each partner. | |
| 3. |
What are the two classifications of goods and services? |
| A. | Local and imported |
| B. | Raw and finished |
| C. | Consumer and producer |
| D. | Ready-made and made-to-order |
| Answer» D. Ready-made and made-to-order | |
| 4. |
An amount of P1,000 becomes P1,608.44 after 4 years compounded bimonthly. Find the nominal interest. |
| A. | 11.89 % |
| B. | 12.00 % |
| C. | 12.08 % |
| D. | 12.32 % |
| Answer» C. 12.08 % | |
| 5. |
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 |
| Answer» C. Currency devaluation | |
| 6. |
What stock represents ownership and enjoys certain preferences than ordinary stock? |
| A. | Authorized stock |
| B. | Preferred stock |
| C. | Incorporator’s stock |
| D. | Presidential stock |
| Answer» C. Incorporator‚Äö√Ñ√¥s stock | |
| 7. |
What is the basic accounting equation? |
| A. | Assets = liability + owner’s equity |
| B. | Liability = assets + owners’ equity |
| C. | Owner’s equity = assets + liability |
| D. | Owner’s equity = liability – assets |
| Answer» B. Liability = assets + owners‚Äö√Ñ√¥ equity | |
| 8. |
What type of bond is issued jointly by two or more corporations? |
| A. | Mortgage bond |
| B. | Joint bond |
| C. | Tie-up bond |
| D. | Trust bond |
| Answer» C. Tie-up bond | |
| 9. |
If there are many sellers and few buyers, the market situation is _________ . |
| A. | Duopsony |
| B. | Oligopoly |
| C. | Oligopsony |
| D. | Monopoly |
| Answer» D. Monopoly | |
| 10. |
What is an index of short-term paying ability? |
| A. | Price-earnings ratio |
| B. | Current ratio |
| C. | Profit margin ratio |
| D. | Gross margin |
| Answer» C. Profit margin ratio | |
| 11. |
What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal? |
| A. | Return of investment |
| B. | Interest rate |
| C. | Yield |
| D. | Rate of return |
| Answer» C. Yield | |
| 12. |
The person desires to pay off the amount in 10 equal annual instalments. The amount of each installment is: |
| A. | Rs. 5638 |
| B. | Rs. 6638 |
| C. | Rs. 7738 |
| D. | None of these |
| Answer» B. Rs. 6638 | |
| 13. |
What is the opposite of perfect competition? |
| A. | Monopsony |
| B. | Oligopoly |
| C. | Oligopsony |
| D. | Monopoly |
| Answer» E. | |
| 14. |
The ratio obtained by dividing 'quick assets' by current liabilities is called |
| A. | Turnover ratio |
| B. | Acid test ratio |
| C. | Solvency ratio |
| D. | None of these |
| Answer» C. Solvency ratio | |
| 15. |
Refer to the cash flow diagram of uniform gradient in a cash flow (in the given figure), the gradient is: |
| A. | Rs. 10000 per year |
| B. | Rs. 15000 per year |
| C. | Rs. 20000 per year |
| D. | Rs. 25000 per year |
| Answer» E. | |
| 16. |
A man invested P110,000 for 31 days. The net interest after deducting 20% withholding tax is P890.36. Find the rate of return annually. |
| A. | 11.50 % |
| B. | 11.75 % |
| C. | 11.95 % |
| D. | 12.32 % |
| Answer» C. 11.95 % | |
| 17. |
Ratio analysis of a construction firm is used for analysis by: |
| A. | Share holders |
| B. | Firm's management |
| C. | Banks of the firm |
| D. | Financial analysts |
| Answer» E. | |
| 18. |
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 |
| Answer» C. Capital expenditure | |
| 19. |
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 |
| Answer» D. P 231.56 | |
| 20. |
What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled? |
| A. | Authorized capital stock |
| B. | Preferred stock |
| C. | Incorporator stock |
| D. | Common stock |
| Answer» E. | |
| 21. |
What refers to the cost of borrowing money or the amount earned by a unit principal per unit time? |
| A. | Yield rate |
| B. | Rate of return |
| C. | Rate of interest |
| D. | Economic return |
| Answer» D. Economic return | |
| 22. |
What is another term for “current assets”?# |
| A. | Fixed assets |
| B. | Non-liquid assets |
| C. | Liquid assets |
| D. | Ccash |
| Answer» D. Ccash | |
| 23. |
Salvage value is sometimes known as ______. |
| A. | Scrap value |
| B. | Going value |
| C. | Junk value |
| D. | Second-hand value |
| Answer» E. | |
| 24. |
The common ratio is the ratio of: |
| A. | Net credit sales to average net receivable |
| B. | Current assets to current liabilities |
| C. | Gross profit to net sales |
| D. | Net income to owner’s equity |
| Answer» C. Gross profit to net sales | |
| 25. |
The owner of the construction company makes use of the estimate: |
| A. | To determine the capital investment costs |
| B. | To assist in financial arrangements |
| C. | To determine economic feasibility of the project |
| D. | All of these |
| Answer» E. | |
| 26. |
A manufacturing firm maintains one product assembly line to produce signal generators. Weekly demand for the generators is 35 units. The line operates for 7 hours per day, 5 days per week. What is the maximum production time per unit in hours required of the line to meet the demand? |
| A. | 1.0 hour per unit |
| B. | 1.2 hours per unit |
| C. | 1.4 hours per unit |
| D. | 1.6 hours per unit |
| Answer» B. 1.2 hours per unit | |
| 27. |
What do you call a one-time credit against taxes? |
| A. | Due credit |
| B. | Tax credit |
| C. | Credible credit |
| D. | Revenue credit |
| Answer» C. Credible credit | |
| 28. |
A form of business firm which is owned and run by a group of individuals for their mutual benefit is called ______. |
| A. | Cooperative |
| B. | Corporation |
| C. | Enterprise |
| D. | Partnership |
| Answer» B. Corporation | |
| 29. |
If there is only one seller and many buyers, the market situation is ________ . |
| A. | Duopsony |
| B. | Oligopoly |
| C. | Oligopsony |
| D. | Monopoly |
| Answer» E. | |
| 30. |
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 |
| Answer» C. Net revenue | |
| 31. |
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 |
| Answer» C. Good will value | |