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
The price at which the callable bond will be redeemed from the bondholder is called ____________________?
(A) Par value
(B) Call value
(C) Face value
(D) Redemption value
What is the feature of some bonds whereby the issuer can redeem it before it matures ?
(A) Return clause
(B) Callability
(C) Recall clause
(D) Call class
What type of bond which can be redeemed before maturity date ?
(A) Preferred bond
(B) Registered bond
(C) Incorporators bond
(D) Callable bond
What type of bond where the corporation’s owner name are recorded and the interest is paid periodically to the owners with their asking for it ?
(A) Preferred bond
(B) Registered bond
(C) Incorporators bond
(D) Callable bond
A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries ?
(A) Mortgage bond
(B) Joint bond
(C) Security bond
(D) Collateral trust bond
What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset ?
(A) Asset recovery
(B) Depreciation recovery
(C) Period recovery
(D) After-tax recovery
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
What is another term for “unit method” for computing depletion ?
(A) Initial cost method
(B) Percentage method
(C) Factor method
(D) Sinking fund method
The depletion allowance method of computing depletion is commonly known as ___________________?
(A) Unit method
(B) Percentage method
(C) Factor method
(D) Sinking fund method