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  1. Refer to the cash flow diagram of uniform gradient in a cash flow (in the given figure), the gradient is:

  2. A.

     Rs. 10000 per year

    B.

     Rs. 15000 per year

    C.

     Rs. 20000 per year

    D.

     Rs. 25000 per year

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  3. A loan of P5,000 is made for a period of 15 months, at a simple interest rate of 15%, what future amount is due at the end of the loan period?

  4. A.

     5,937.50

    B.

     5,873.20

    C.

     5,712.40

    D.

     5,690.12

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  5. A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment?

  6. A.

     3.0%

    B.

     3.4%

    C.

     3.7%

    D.

     4.0%

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  7. A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?

  8. A.

     12.07 %

    B.

     12.34 %

    C.

     12.67 %

    D.

     12.87 %

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  9. What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties?

  10. A.

     Book value

    B.

     Market value

    C.

     Fair value

    D.

     Franchise value

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  11. What is another term for “current assets”?

  12. A.

     Fixed assets

    B.

     Non-liquid assets

    C.

     Liquid assets

    D.

     Ccash

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  13. What is the ordinary interest on P1,500.50 for 182 days at 5.2%?

  14. A.

     P39.01

    B.

     P39.82

    C.

     P39.45

    D.

     P39.99

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  15. In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes?

  16. A.

     Straight line method

    B.

     Sinking fund method

    C.

     Sum-of-year digit method

    D.

     Declining balance method

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  17. What is another term for “acid-test ratio”?

  18. A.

     Current ratio

    B.

     Quick ratio

    C.

     Profit margin ratio

    D.

     Price-earnings ratio

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  19. What refers to the amount of a product made available for sale?

  20. A.

     Supply

    B.

     Demand

    C.

     Product

    D.

     Good

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