Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

ELEMENTS > MESL (YELLOW BOOK 8.0) > Flashcards

MESL (YELLOW BOOK 8.0) Flashcards

1
Q

Decrease in the value of a physical property due to the passage of time.

A

Depreciation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Work-in process is classified as
 An asset
 A liability
 An expenses
 An owner’s equity

A

 An asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q
  1. Which is NOT a type of business organization?
     Sole of proprietor
     Corporation
     Enterprise
     Partnership
A

 Enterprise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

It is defined to be the capacity of a commodity to satisfy human want.

A

Luxury

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Type of ownership in business where individuals exercise and enjoy the right in their own interest.

A

Private

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

The 72 rule of thumb is used to determine

A

How many years money will be double

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Worth of the property as shown in the accounting records of an enterprise.

A

Book value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

It is a series of equal payments occurring at equal interval of time where the first payment is made after several periods, after the beginning of the payment.

A

Deferred annuity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Which is true about corporation?
 It is the not best form of business organization
 The minimum number of incorporations to start a corporation is three
 Its life is dependent on the lives of the incorporators
 The stockholders of the corporation are only liable to the extent of their investments

A

 The stockholders of the corporation are only liable to the extent of their investments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The worth of the property equals to the original cost less depreciation.

A

Book value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Additional information of prospective bidders on contract documents issued prior to bidding date.

A

Bid bulletin

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

A market situation where there is only one seller with many buyer.

A

Monopoly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The place where buyers and sellers come together.

A

Market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

A type of bond where the corporation pledges securities which it owns( I,e, stocks, bonds of its subsidiaries).

A

Collateral trust bond

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

A type of bond issued jointly by two or more corporations.

A

Joint bond

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

The flow back of profit plus depreciation from a given project is called

A

Cash flow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

A mathematical expression also known as the present value of an annuity of one called

A

Present worth factor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

An intangible value which is actually operating concern has due to its operation.

A

Going value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

There are products or services that are desired by human and will be purchased if money is available after the required necessities have been obtained.

A

Luxuries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Parties whose consent or signature in a contract is not considered intelligent.

A

Demented persons

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Those funds that are required to make the enterprise or project a going concern.

A

Working capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

The reduction of the value of an asset due to constant use and passage of time.

A

Depreciation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

A market situation where there are only two buyers with many sellers.

A

Duopsony

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

As applied to a capitalized asset, the distribution of the initial cost by a periodic change to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged program is called

A

Amortization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

A type of bond whose guaranty is in lien on railroad equipments.

A

Equipments obligations bond

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Double taxation is a disadvantage of which business organization?
Sole partnership
Partner
Corporation
Enterprise

A

Corporation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Liquid assets such as cash and other assets that can be converted quickly into cash, such as accounts receivable and merchandise are called

A

Current assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Kind of obligation which has no condition attached.

A

Gratuitous

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

We may classify an interest rate, which specifies the actual rate of interest on the principal for one year as

A

Effective rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

The true value of interest rate computed by equations for compound interest for a year period is known as.

A

Effective interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

In case of bankruptcy of a partnership,
-The partners are not liable for the liabilities of the partnership
-The partnership assets (excluding the partners personal assets) only will be used to pay the liabilities.
-The partners personal assets are attached to the debt of the partnership
-The partners may sell stock to general additional capital

A

The partners personal assets are attached to the debt of the partnership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Estimated value at the end of the useful life.

A

Salvage value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

The ratio of the interest payment to be principal for a given unit of time and usually expressed as a percentage of the principal.

A

Interest rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

The recorded current value of an asset is known as

A

Book value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What is the minimum number of incorporators in order that a corporation be organized?

A

5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

An association of two or more individuals for the purpose of operating a business as co-owners for profit.

A

Partnership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Capitalized cost of any property is equal to the

A

First cost + interest of perpetual maintenance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Direct labor cost incurred in the factory and direct materials cost are the costs of all the materials that go into production. The sum of these two direct costs is known as

A

Prime cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

It is the amount a willing buyer will pay to a willing seller for a property where each has equal advantage and is under no compulsion to buy or sell

A

Market value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Which is TRUE about partnership?
-It has a perpetual life
-It will be dissolved if one of the partners ceases to be connected with the partnership
-It can be handed down from one generation of partners to another
-Its capitalization must be equal for each partner

A

It will be dissolved if one of the partners ceases to be connected with the partnership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Scrap value of an asset is sometimes known as

A

Salvage value

42
Q

Gross profit, sales less cost of good soled, as a percentage of a sales is called

A

Gross margin

43
Q

A method of depreciation where a fixed sum of 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’s estimated life.

A

Sinking fund method

44
Q

The present worth of all depreciation over the economic life of the item is called

A

Depreciation recovery

45
Q

The value which has a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties.

A

Fair value

46
Q

The provision in the contract that indicates the possible adjustment of material cost and labor cost

A

Escalatory clause

47
Q

A market situation where there is one seller and one buyer.

A

Bilateral monopoly

48
Q

Grand total of the assets and operational capability of a corporation

A

Authorized capital

49
Q

The length of the time which the property may e operated at a profit

A

Economical life

50
Q

The cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn.

A

Time value of money

51
Q

A method of computing depreciation in which the annual charge is fixed percentage of the depreciation book value at the beginning of the year to which the depreciation applies.

A

Declining balance method

52
Q

It is a series of equal of payments occurring at equal interval of time.

A

Annuity

53
Q

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

Depletion

54
Q

Is the simplest form of a business organization

A

Sole proprietorship

55
Q

A type of annuity where the payments are made at the start of each period, beginning from the first period.

A

Annuity due

56
Q

An association of two or more persons for a purpose of engaging in a profitable business

A

Partnership

57
Q

An artificial expense that spreads the purchase price of an asset or another property over a number of years

A

Depreciation

58
Q

A type of bond where the corporation’s owners name are recorded and the interest is paid periodically to the owners with their asking for it.

A

Registered bond

59
Q

If the security of the bond is mortgage on certain specified asset of a corporation, this bond is classified as

A

Mortgage bond

60
Q

Sometime called second hand value

A

Salvage value

61
Q

The interest rate at which the present work of the cash on a project is zero of the interest earned by an investment.

A

Rate of return

62
Q

Bond to which are attached coupons indicating the interest due and the date when such interest is to be paid

A

Coupon bond

63
Q

Defined as the future value minus the present value

A

Discount

64
Q

What is the highest position in the corporation?

A

Chairman of the Board

65
Q

Which is NOT an essential element of an ordinary annuity?
The amounts of all payments are equal
The payments are made are equal interval of time
The first payment is made at the beginning of each period
Compound interest is paid on all amounts in the annuity

A

The first payment is made at the beginning of each period

66
Q

An amount of money invested at 12% interest per annum will double in approximately

A

6 years

67
Q

The total income equals the total operating cost.

A

Break even-no gain no loss

68
Q

A type of annuity where the payments are made at the end of each payment period starting from the first period.
Ordinary annuity

A

Ordinary annuity

69
Q

The first cost of any property includes
The original purchase price and freight and transportation charges
Installation expenses
Initial taxes and permits fee
All of the above

A

All of the above

70
Q

To triple the principal, one must use

A

Logarithms

71
Q

Money paid for the use of borrowed capital

A

Interest

72
Q

This occurs in a situation where a commodity or service is supplied by a number of vendors entering the market

A

Perfect competition

73
Q

A series of uniform accounts over an infinite period of time

A

Perpetuity

74
Q

A method of depreciation whereby the amount to recovery is spread uniformly over the estimated life of the asset in terms of the periods or units of output.

A

Declining balance method

75
Q

An index of short-term paying ability is called.

A

Acid-test ratio

76
Q

Represent ownership, and enjoys certain preferences than ordinary stock.

A

Preferred stock

77
Q

It is a series of equal payments occurring at equal intervals of time where the first payment is made after several periods, after the beginning of the payment.

A

Deferred annuity

78
Q

The amount of company’s profit that the board of directors of the corporation decides to distribute to ordinary shareholders.

A

Dividend

79
Q

Which one of the following contains only items which are considered fixed charges?
Interest, taxes, amortization, insurance, rent
Amortization, insurance, steam cost, painting, cleaning
Interest, taxes, replacements, labor for repairs
Interest, taxes, rent , power cost, oil cost

A

Interest, taxes, amortization, insurance, rent

80
Q

A distinct legal entity which can practically transact any business transaction which a real person could do.

A

Corporation

81
Q

The payment for the use of borrowed money is called

A

Interest

82
Q

Consists of the actual counting or determination of the actual quantity of the materials on hand as of a given date.

A

Physical inventory

83
Q

A type of bond which does not have security except a promise to pay by the issuing corporation.

A

Debenture bond

84
Q

The quantity of a certain commodity that is offered for sale at certain price at a given place and time.

A

Supply

85
Q

Represent the ownership stockholders who have a residual claim on the assets of the corporation after all the claims have been settled.

A

Common stock

86
Q

Reduction in the level of national income and output usually accompanied by the fall in the general price level

A

Deflation

87
Q

In SYD method, the sum of years digit is calculated using the formula with n= number of years of the equipment.

A

(n(n+1))/2

88
Q

The profit derived from a project or business enterprise without consideration of obligations to financial contributions or claims of other based on profit.

A

Economic return

89
Q

The intangible item of value from the exclusive right of a company in a stated region of the country.

A

Franchise value

90
Q

A market whereby there is only one buyer of an item for which there are no good substitute.

A

Monopsony

91
Q

A form of fixed-interest security issued by central or local government, companies, banks or other institutions. They are usually a form of long-term security, buy may be irredeemable, secured or unsecured.

A

Bond

92
Q

A certificate of indebtness of a corporation usually for a period not less than 10 years and guaranteed by a mortgage on certain assets of the corporation.

A

Bond

93
Q

A market situation where there are few sellers and few buyers

A

Bilateral oligopoly

94
Q

An evil wrong committed by a person damaged another person’s property or reputation is

A

Tort

95
Q

These are products or services that are required to support human life and activities, that will be purchased in somewhat the same quantity even though the price varies considerably.

A

Necessities

96
Q

An economic study is made of the total amount of cost (C) for a series of alternative investment (P) for a given project. If C is plottled as the ordinate versus P, the most desirable occurs when

A

dC/dP =0

97
Q

A is aperiodic payment and I is the interest rate, then present worth of a perpetuity =

A

A/i

98
Q

Which of the following depreciation methods cannot have a salvage value of zero?
Straight line method
Sinking fund method
Declining balance method
SYD method

A

Declining balance method

99
Q

A condition where only few individuals produce a certain product and that any action of one will lead to almost the same action of the others

A

Oligopoly

100
Q

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

ELEMENTS (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions