From questionnaires (random) Flashcards
It occurs when there are few suppliers and any action taken by anyone of them will definitely affect the course of action of others.
Oligopoly
The amount of money paid for the use of borrowed capital or the income produced by money which has been loaned.
Interest
It exists when a certain product is offered for sale by many vendors or suppliers and there is no restriction against other vendors from entirely the market.
Perfect competition
The process of determining the value of certain properties or equipment for certain reasons.
Valuation
Those funds that are required to make the enterprise or product a going concern.
Working capital
The length of time during which the property may be operated at a profit.
Economic life
Worth of the property shown in the accounting records of an enterprise.
Book value
Cost of things that are neither labor nor materials.
Expenses
The series of equal payments at equal intervals of time.
Annuity
An index of short term paying ability is called ___.
Acid-test ratio (quick ratio)
Used to produce consumer goods.
producer goods (also called capital goods)
It is a series of equal payments occurring at equal interval of time where the first payment is made several periods after the beginning of the payment.
Deferred annuity
The amount of a property in which a willing buyer will pay to a willing seller for the property when neither one is under the compulsion to buy or sell.
Fair value
A type of annuity where the payments are made at the start of each period, beginning from the first period.
Annuity due
The intangible item of value from the exclusive right of the company to provide a specific product or service in a stated region of the country.
Franchise value
The length of time during which it is capable of performing the function for which it was designed and manufactured.
Physical life
Products that are directly used by people to satisfy their wants.
Consumer goods
A change in cost for a small change in volume of production.
Differential cost
An amount which has been spent and for some reasons cannot be recovered.
Sunk cost
The ratio between the average demand and the maximum amount demand.
Load factor
The decrease in the value of property due to the gradual extraction of its content.
Depletion
The sum of the first cost and the present and the worth of all cost of any property of replacement, operation and maintenance for long time or forever.
Capitalized Cost
The difference between the book value and the actual lower resale value ___.
Salvage Value
It occurs when a unique product or service is available only from a single supplier and entry of all other possible suppliers presented.
Monopoly
A place where buyer and seller come together.
Market
Ratio of annual net profit and the capital invested.
Rate of return
The price of which a willing buyer will pay to a willing seller for a commodity.
Market value
The price of property when sold for a junk.
Scrap value
A market situation where any given product is supplied by a large number of sellers and there is no restriction on additional vendors entering the market.
Perfect competition
A market situation where a unique product or service is available from a single seller and that seller can prevent the entry of all others in the market.
Perfect monopoly
A market situation where there is only one seller with many buyers.
Monopoly
A market situation where there are so few sellers of a product or service that action by one will almost inevitably result in a similar action by the others.
Oligopoly
A market whereby there is only one buyer of an item for when there are no goods substitute.
Monopsony
What is defined as any tangible economic product that contributes directly or indirectly to the satisfaction of human want?
Goods
Commodities
What is defined as any tangible economic activity that contributes directly or indirectly to the satisfaction of human want?
Services
It is defined to be the capacity of a commodity to satisfy human want
Utility
It refers to the goods and services that are desired by human and will be acquired only after all the needs have been satisfied
Luxury
It refers to the need, want or desire for a product backed by the money to purchase it
Demand
It refers to the amount of a product made available for sale.
Supply
The present worth of cost associated with an asset for an infinite period of time
Capitalized cost
The addition cost of producing one more unit is
Marginal cost
Costs that can be reasonably measured and allocated to a specific output or work activity
Direct Cost
Costs that cannot be reasonably measured and allocated to a specific output or work activity
Overhead cost / Indirect cost
Cost that has occurred in the past and has no relevance to estimates of future costs and revenues related to an alternate course of action.
Sunk cost
An imaginary cost representing what will not be received if a particular strategy is rejected
Opportunity cost
What is the change in cost per unit variable change called
A. Variable cost
B. Incremental cost
C. Fixed cost
D. Supplemental cost
B. Incremental cost
Which one is a one-time expense?
A. Investment
B. Single cost
C. One-time cost
D. Operating cost
A. Investment
Annually recurring cost.
A. Investment
B. Operating cost
C. Contingency
D. Operating capital
B. Operating cost
Manager’s salary is an example of
A. Investment
B. Operating cost
C. Contingency
D. Operating capital
B. Operating cost
Land is an example of.
A. Investment
B. Single cost
C. One-time cost
D. Operating cost
A. Investment
In a rice and corn farm, costs of planting materials and fertilizers, and wages of farm laborers are examples of
A. Direct labor costs
B. Overhead expenses
C. Operation and maintenance costs
D. Sunk costs
C. Operation and maintenance costs
The cash component of investment.
A. Cash investment
B. Operating cost
C. Contingency
D. Operating capital
D. Operating capital
The equivalent value of a property at any given year.
Book value
What is market price deducted by tax?
Shadow price
What feasibility indicator is best for determining how fast the project recovers the investment?
Payback Period
What feasibility indicator is best for determining how much can you gain from a certain project?
Net Present Value
What feasibility indicator is normally compared to bank’s interest rate?
Internal Rate of Return (IRR)
What analysis is done to determine the degree of project feasibility at various scenarios?
Sensitivity Analysis
What analysis is done to determine the degree of project feasibility at
various scenarios?
Economic Analysis
What feasibility analysis uses market prices?
Financial analysis
The price at which there is no loss or gain
Breakeven price
It is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund.
Bond
The value of the stock as stated on the stocks certificate
Face or Par value
A form of business firm which is owned and run by a group of individuals for their mutual benefit.
A. Cooperative
B. Corporation
C. Enterprise
D. Partnership
A. Cooperative
What is a stock of a product which is held by a trade body or government as a means of regulating the price of that product?
Buffer stock
The ability to meet debts as they become due is known as
Solvency
The ability to convert assets to cash quickly is known as
Liquidity
Sinong engr na by December 12, 2024?
Syempre ako!
The amount of company’s profit that the board of directors of the corporation decides to distribute to ordinary shareholders
Dividend
It refers to the residual value of a company’s assets after all outside liabilities (shareholders excluded) have been allowed for
Equity
Cash money and credit necessary to establish and operate an enterprise are generally called.
Capital
Lands, buildings, plants and machineries are example of what type of asset?
Fixed asset
Which situation is better and attainable for a good economy?
A. High discount rate C. Fast discount rate
B. Low discount rate D. No discount rates
B. Low discount rate
The normal combined discount and inflation rate of the Philippines
A. 2-4% B. 5-7% C. 8-12% D. 16-20%
C. 8-12%
What is the effect of increasing inflation rate to discounted cash flow at project start?
A. Increases
B. Decreases
C. Fluctuates
D. None of these
D. None of these
Which one is true when discount rate increases?
A. NPV increases C. Risk decreases
B. NPV decreases D. Capital reduces
B. NPV decreases
“When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output”. This statement is known as the
Law of diminishing return
“Under conditions of perfect competition, the price at which any given product will be supplied and purchased is the price that will result in the supply and the demand being equal.” This statement is known as the
Law of supply and demand
The average rate of price increase in the economy.
Inflation
The way of using resources in an efficient manner to satisfy needs or targets
Economics
The cash flow value for a certain year of project operation after considering inflation or money discounting
A. Discounted net savings
B. Discounted cash flow
C. Devaluated cash flow
D. Discounted difference between revenues and expenses
E. Discounted net benefits
B. Discounted cash flow
A series of expenses and credits that run over the lifetime of a project.
Cash flow
Revenue less cost for a year of project operation.
Net cash flow
The changes in the price of specific goods or services in a given economy over a period of time. A. Deflation
B. Price escalation
C. Changing prices
D. Inflation
E. Cost escalation
E. Cost escalation
Based on time value of money, your Php 1 million today will be __________ in terms of face value (the value you can read in the face of the
money) a year from now when deposited in the bank
Bigger
Inflation affects ____ aspects of economic life.
A. No
B. Several
C. Few
D. All
E. Certain
D. All
Only the principal money earns interest.
A. Research interest
B. Vested interest
C. Compound interest
D. Simple interest
E. Political interest
D. Simple interest
An investment analysis to compare two or more scenarios
A. Break-even analysis
B. Cost analysis
C. Price analysis
D. Engineering analysis
E. Economic analysis
E. Economic analysis
Based on time value of money, your Php 1 million today will be __________ in terms of purchasing power a year from now when kept in your
safe vault.
Smaller
Both the principal money and the interest earn interest.
Research interest
B. Political interest
C. Compound interest
D. Vested interest
E. Simple interest
C. Compound interest
Each successive units of one input are added to given quantities of other inputs, a point is eventually reached where the addition to product per additional unit of input will decline
Law of Diminishing Return
It is defined as the ratio of the total product to the quantity of input used in producing that amount of product.
Average Product (AP)
It is defined as the addition to the product resulting from the addition of one unit of the input
Marginal product (MP)
If MP>AP, AP is
increasing
AP is decreasing when MP is (greater/less) than AP
less
When MP=AP, AP is
maximum
What are the 3 regions in production?
Stage 1: Increasing return
Stage 2: Diminishing
Stage 3: Negative
It is the best estimate of an asset’s net market value at the end of its useful life.
Depreciation
It is the distribution of the cost of certain types of property, usually intangible, over a prescribed period of time that are usually made in equal installments.
Amortization
It is the period on time over which depreciation deductions are used to offset taxable income in determining income taxes.
Tax Life
It is the period of time an asset is kept in productive use in a trade or business.
Useful Life
Total revenues from sale of goods plus income from dividends, interest, rent, royalties, and gains on the exchange of capital assets.
Grass Revenues
All costs incurred while transacting business, except capital expenditures, tend to be proportional to the extent of business activity and include interest paid for the use of borrowed capital
Operating Expenses
Tax costs to an organization that depend on profits remaining after expenses are paid or accounted for.
Income Taxes
Type of tax assessed as a function of the value of real estate, business, and personal property. They are independent of the income or profit of an individual or a business.
Property taxes
Type of tax assessed on the basis of purchases of goods and/or services, and are independent of gross income or profits.
Sales tax
Type of tax assessed as a function of the sale of certain goods or services often considered non-necessities, also independent of the income or profit of an individual or a business.
Excise tax
Dollars received equal dollars paid
Balance of payment
Export equal imports
Balance of trade
the unit price of a traded good at a country’s border. For exports, the FOB price, for imports, the CIF price.
Border price
The landed cost of an import on the dock or other entry point in the receiving country. Includes cost of international freight and insurance and often includes cost of unloading onto the dock.
CIF (cost, insurance, and freight)
An establishment in which the employer by agreement hires only union members in good standing.
Closed shop
The special ability of a resources to provide/produce one product or service relatively more cheaply than the other products or services.
Comparative advantage
An increase in the production of one makes a reduction in the other, given a particular level of resources.
Competitive enterprise
When a transfer of resources to one product and an increase in its production accompanied by increase in the production of the other.
Complementary enterprise
The ability of an individual firm or nation to meet its debt service obligations. For a firm, a judgment about this is often formed on the basis of one or another financial ratio.
Creditworthiness
When peso becomes cheaper compared to foreign currency.
Devaluation
the interest that a commercial bank pays when it borrows from a central bank, using government paper or bond as security.
Discount rate
Income distributed to shareholders of an enterprise.
Dividend
Refers to the value added by local or domestic activities to components imported from abroad.
Domestic value added
It withdraws product from an origin with the provision for reproduction of the resource that is removed (e.g. timber from the forest)
Extractive industry
In farm investment analysis, a projection of the inflow and outflow of a farm to estimate the incremental net benefit over the life of a project.
Farm budget
Concerned with the farmer as a member of society, deals with the farms as a group and determines the principles governing not only the farm business but also the general welfare on a national and international level.
Farm Economics/Agricultural Economics
Boundary of a farm
Farm gate
Price a farmer receives for his product or pays for inputs at the boundary of the farm – that is, the price without any transport to a market or other marketing service; most commonly applied to outputs
Farm gate price
in credit transactions, a period during which a borrower need not repay principal and, sometimes, interest.
Grace period
Technique of buying and selling that minimizes risk due to price fluctuation.
Hedging
an output of a project that replaces goods or services that would have been imported without the project.
Import substitute
the percentage change in purchases that occurs with a given percentage change in income.
Income elasticity of demand
A time period so long that all factors of production can be varied; i.e., there are no fixed costs anymore, all variable costs.
Long run
additional cost that a producer incurs in making one additional unit of output.
Marginal cost
refers to the grade of land whose productive capacity is only enough to recover its cost of production
Marginal land
refers to the grade of land whose productive capacity is only enough to recover its cost of production
marginal product
price is determined by adding some fixed percentage to the unit cost; most commonly found in the retail trades
mark-up pricing
an establishment in which eligibility for employment and retention on the payroll are not determined by membership or non-membership in a labor union.
open shop
the location where the first sale transaction takes place for a product.
point of first sale
elasticity formula
E = △Q/△P
A time period where one or more of the factors of production are fixed.
short run
if production of one can be increased without increasing or decreasing production of the other.
supplementary enterprise
having enough money to pay debts as they fall due.
solvency
the amount of economic value generated by the activity carried on within each production unit in the economy.
value added
- A uniform payment series is one that consists of equal payments.
a. starting now up to year n
b. starting one year from now up to year n
c. starting one year from now increasing by a uniform amount up to years n
d. none of the above
b. starting one year from now up to year n
- The group of costs associated with initiation of an activity and which occurs only once for any given activity is
a. fixed cost
b. life-cycle cost
c. first cost
d. non-recurring cost
c. first cost
- Among the following, that which can be classified as variable cost is
a. cost of purchasing machines
b. cost of materials
c. cost of making preliminary design of product or structure
d. depreciation cost
b. cost of materials
anything of value possessed by an enterprise.
assets
This includes those properties that will not be converted into cash or converted into saleable form buildings land, machinery, equipment, furniture.
fixed assets
This includes cash, accounts receivable within a short time or at least within the present accounting period, raw materials good in the process of production and finished goods ready for sale.
current/liquid assets
Money paid for materials not yet delivered or services not yet rendered to the company. Examples insurance or rental until the term for which they were paid expires.
prepaid expenses
These have no physical substance. Examples: goodwill, copyrights, patents, franchises license and trademarks
intangible assets
Debts or claim of anymore other than the owners of the property upon the assets of the company.
liabilities
Those which are not due for payment until sometime in the future, usually after a period exceeding one year.
fixed liabilities
type of liability whose nature within a short time, usually a year.
current liabilities
This is income paid to the enterprise for goods not yet delivered or services not yet rendered to the payer.
prepaid income
the excess of assets over liabilities. It represents the investment of a person or several persons in the enterprise.
ownership or proprietorship
the excess of assets over liabilities. It represents the investment of a person or several persons in the enterprise.
individual or sole proprietorship
Ownership is in the capital account of two or more persons voluntarily associated as partners.
partnership
Ownership is in the shares of common and preferred stocks of investors. The business in organized as a chartered, legal entity separate from the owners.
cooperation
claims of anyone against the assets of the enterprise. It includes liabilities to creditors and the claims of the owners.
equities
financial summary showing the relationship among assets, liabilities and ownership in the enterprise as of a given date
balance sheet
a summary of the income and expenses of an individual or enterprise for a given period.
profit and loss statement
results from an excess of income over expenses
profit
indicated if the expenses exceed the income for the given period.
loss
the value of personal and professional services or of good sold in the operation of a business.
income
Results from the sale of products or form rendering service for which enterprise was established.
operating income
. This is due to sale of assets not needed in the primary operation or in rendering unusual service not included in the company’s basic services.
non operating income
cost of commodities and services needed in the operation of business to produce income.
expenses
Incurred in the pursuit of the primary operation of the business.
operating expenses
Incurred for an activity that is different from the basic operations of the business.
non-operating expenses
The extent to which a firm can meet its short-term obligations.
current ratio
The total margin available to cover operating expenses and yield a profit
gross profit margin
After-tax profits per peso for sales.
net profit margin
Earnings available to the owners of common stock.
Earnings per share (EPS)
the worth that a person attaches to an object or service. It is the measure of utility and is expressed as the price that must be paid to obtain a particular item.
value designates
Products and services that directly satisfy human wants. Examples: hamburger consultation with a doctor, hair cut. TV set.
Consumer goods
indirectly satisfy human wants because they are used in the production or construction process to produce other goods and services.
producer or capital goods
