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  1. How long will it take money to double itself if invested at 5% compounded annually?

  2. A.

     13.7 years

    B.

     14.7 years

    C.

     14.2 years

    D.

     15.3 years

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  3. What is the present worth of a year annuity paying P 3,000.00 at the end of each year, with interest at 8% compounded annually?

  4. A.

     P 7,654.04

    B.

     P 7,731.29

    C.

     P 7,420.89

    D.

     P 7,590.12

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  5. What is defined as the current assets minus inventories and prepaid expenses?

  6. A.

     Profit margin ratio

    B.

     Price-earnings ratio

    C.

     Return of investment ratio

    D.

     Quick ratio

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  7. If ‘S’ is the future capital accumulated in ‘n’ years at the rate of interest ‘I’ per annum, then present worth is:

  8. A.

     S/(1 + i)n

    B.

     S (1 + i)n

    C.

     S (1 + i)1/n

    D.

     None of these

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  9. Gross margin is the ratio of the gross profit to ______.

  10. A.

     Net sale

    B.

     Owner’s equity

    C.

     Inventory turnover

    D.

     Quick assets

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  11. Probabilistic estimating of a construction project includes:

  12. A.

     Labour

    B.

     Productivity

    C.

     Wage scale

    D.

     All of these

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  13. The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.

  14. A.

     $ 5,000,000.00

    B.

     $ 5,010,000.00

    C.

     $ 5,025,000.00

    D.

     $ 5,050,000.00

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  15. What is another term for “unit method” for computing depletion?

  16. A.

     Initial cost method

    B.

     Percentage method

    C.

     Factor method

    D.

     Sinking fund method

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  17. What is the effective rate corresponding to 18% compounded daily? Take 1 year is equal to 360 days.

  18. A.

     19.61 %

    B.

     19.44 %

    C.

     19.31 %

    D.

     19.72 %

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  19. Each financial ratio is generally compared by

  20. 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

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