What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry ?
(A) Unstable economy
(B) Rate of interest cannot be exactly determined
(C) The initial deprecation is high
(D) The initial depreciation is low
What refers to an imaginary cost representing what will not be received if a particular strategy is rejected ?
(A) Opportunity cost
(B) Ghost cost
(C) Horizon cost
(D) Null cost
What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community ?
(A) Annual cost method
(B) Benefit-cost ratio
(C) Rate of return method
(D) EUAC
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
Capitalized cost of a project is also known as ____________________?
(A) Infinite cost
(B) Life cycle cost
(C) Life cost
(D) Project cost
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
The amount of company’s profit that the board of directors of the corporation decides to distribute to ordinary shareholders is called ___________________?
(A) Dividend
(B) Return
(C) Share of stock
(D) Equity
What stock represents ownership and enjoys certain preferences than ordinary stock ?
(A) Authorized stock
(B) Preferred stock
(C) Incorporator’s stock
(D) Presidential stock
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
Aggregation of individuals formed for the purpose of conducting a business and recognized by law as a fictitious person is called ________________________?
(A) Partnership
(B) Investors
(C) Corporation
(D) Stockholders