initial cost by a periodic changes to operation as in depreciation or the

# Initial cost by a periodic changes to operation as in

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initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged program is called a. Annuity b. Capital recovery c. Annuity factor d. amortization Ans: D
The reduction of the value of an asset due to constant use and passage of time a. Scrap value b. depletion c. depreciation d. Book value Ans: C
A method of computing depreciation in which the annual charge is a fixed percentage of the depreciation book value at the beginning of the year to which the depreciation applies. a. Straight line method b. Sinking fund method c. SYD method d. Declining balance method Ans: D
A method of depreciation whereby the amount to recover is spread uniformly over the estimated life of the asset in terms of the periods or units of output a. Straight line method b. Sinking fund method c. Declining balance method d. SYD method Ans: C
Which of the following depreciation methods cannot have a salvage value of zero? a. Straight line method b. Sinking fund method c. Declining balance method d. SYD method Ans: C
A method of depreciation where a fixed sum money is regularly deposited at compound interest in a real or imaginary fund in order to accumulate an amount equal to the total depreciation of an asset at the end of the asset’s estimated life a. Straight line method b. Sinking fund method c. Declining balance method d. SYD method Ans: B
The function of interest rate and time that determines the cumulative amount of a sinking fund resulting from specific periodic deposits a. Sinking fund factor b. Present worth factor c. Capacity factor d. Demand factor Ans: A
The first cost of any property includes a. The original purchase price and freight and transportation charges b. Installation expenses c. Initial taxes and permits fee d. All of the above Ans: D
In SYD method, the sum of years digit is calculated using the formula with n= number of useful years if the equipment a. N(N-1)/1 b. N(N+1)/2 c. N(N+1) d. N(N-1) Ans: B
Capitalized cost of any property is equal to the a. Annual cost b. First cost + interest of the first cost c. First cost + interest of perpetual maintenance d. First cost + salvage value Ans: C
The lessening of the value of an asset due to the decrease in the quantity available (referring to the natural resources, coal, oil, etc.) a. Depreciation b. Depletion c. Inflation d. Incremental cost Ans: B
Is the simplest form a business organization a. Sole proprietorship b. partnership c. Enterprise d. corporation Ans: A
A distinct legal entity which can practically transact any business transaction which a real person could do a. Sole proprietorship b. enterprise c. partnership d. corporation Ans: D
An association of two or more persons for a purpose of engaging in a profitable business a. Sole proprietorship b. Enterprise c. partnership d. Corporation Ans: C