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  1. What refers to the present worth of the probable future net earnings?

  2. A.

     Total fair value

    B.

     Total market value

    C.

     Going concern value

    D.

     Earning value

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  3. The financial health of the company is measured in terms of:

  4. A.

     Liquidity

    B.

     Solvency

    C.

     Relative risk

    D.

     All of the above

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  5. It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate?

  6. A.

     16.02 %

    B.

     16.28 %

    C.

     16.32 %

    D.

     16.47 %

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  7. A loan for P50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of money?

  8. A.

     9.01 %

    B.

     9.14 %

    C.

     9.31 %

    D.

     9.41 %

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  9. What is normally used to compare alternatives that accomplish the same purpose but have unequal lives?

  10. A.

     Capitalized cost method

    B.

     Present worth method

    C.

     Annual cost method

    D.

     MARR

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  11. Perfect monopoly exists only if:

  12. 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

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  13. What refers to the need, want or desire for a product backed by the money to purchase it?

  14. A.

     Supply

    B.

     Demand

    C.

     Product

    D.

     Good

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  15. Using factor method, the depletion at any given year is equal to:

  16. 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

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