Professional Documents
Culture Documents
Directions: In the Answer Sheet provided, shade the box of the letter that corresponds to your
answers. Pencil should be used in marking your answers. Careless marking of your answer sheet may
lower the scores you earn on this test.
You will have two (2) hours for this test. Work as rapidly and as accurately as you can. If
you are not sure of an answer, mark the choice which is your best guess. Only one answer should
be marked for each problem. Should a mistake be made, merely erase the wrong box and mark the
correct one.
3. Uniform rules governing the air carriers’ liabilities with respect to passenger and goods
carried in most international flights were established by the:
A. Chicago Convention of 1944
B. Warsaw Convention of 1929
C. Tokyo Convention of 1963
D. Rome Convention of 1952
4. Which of the following is not among the qualifications for appointment as member of
the Board of Aeronautical Engineers?
A. At least thirty years of age and must be of good moral character
B. Citizen of the Philippines
C. Holder of the degree bachelor of Science in Aeronautical Engineering
D. Registered Aeronautical Engineer in the Philippines
5. Which EASA Part 66 license category would allow a person to be a certifying staff for
base maintenance?
A. Category A
B. Category B
C. Category C
D. Category D
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8. What is the position title of the head of CAAP?
A. Chairman
B. General Director
C. Director General
D. Assistant Secretary
12. Who is responsible for maintaining the airworthy condition of the aircraft?
A. Owner C. AMO
B. Pilot D. Inspector
14. Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation is
also known as?
A. Hague Convention
B. Montreal Convention of 1971
C. Montreal Convention of 1991
D. Tokyo Convention
15. How many fire extinguishers are required on an aircraft having 401 - 500 passengers?
A. 6 C. 4
B. 5 D. 8
17. The privilege for an airline registered in one participating state to take on passengers,
mail and cargo in a second state, transport them via state of registration, and put them
down in a third participating state.
A. 2nd Freedom
B. 4th Freedom
C. 6th Freedom
D. 7th freedom
18. The right to fly between two foreign countries while not offering flights to one's own
country.
A. 2nd Freedom
B. 4th Freedom
C. 6th Freedom
D. 7th freedom
Page 2 of 18
19. This means minimum control speed with the critical engine inoperative
A. VMO C. VMU
B. VMC D. VNE
23. One of the powers of the board of CAAP is to issue __________ which will require the
attendance and testimony of a witness during hearings.
A. Subpoena duces Tecum
B. Search Warrant
C. Writ of Habeas Corpus
D. Writ of Amparo
24. It is the paved way rigid or flexible which connects runway with loading apron or service
and maintenance hangers or with another runway.
A. Taxiway C. Tarmac
B. Ramp D. Turnarounds
25. A person who is bonafide holder of a certificate of registration issued by the board in
accordance with PD 1570.
A. Aircraft Technician C. Aeronautical Engineer
B. AMT D. Aerospace Engineer
26. He shall be fair and tolerant in his dealings with fellow engineers and give credit to those
to whom credit is properly due is under what section of code of ethics?
A. Section 3 C. Section 5
B. Section 4 D. Section 6
27. It is a precision instrument approach and landing with a decision height not lower than
60 m (200 ft) and with either a visibility not less than 800 m or a runway visual range not
less than 550 m.
A. CAT 1 C. CAT 3B
B. CAT 2 D. CAT 3A
28. Aerial work and operating limitations for non-type certificated aircraft is under CAR?
A. Part 12 C. Part 11
B. Part 10 D. Part 18
29. ATA 57 is
A. Windows C. Doors
B. Wings D. Engine Nacelles
31. The capability to withstand the application of heat by a flame for a period of 5 minutes.
A. Fire proof
B. Fire Resistant
C. Flash proof
D. Heat Resistant
Page 3 of 18
32. The board shall submit its annual report to the commission within ____ every end of
each calendar year.
A. 30 days C. 60 days
B. 45 days D. 90 days
34. For normal, utility, and acrobatic category airplanes, the height that must be cleared
that is included in the take-off distance is?
A. 30 feet C. 50 feet
B. 35 feet D. 80 feet
35. At sea level, the gust velocity for commuter category aircraft is assumed to be?
A. 12.5 fps C. 66 fps
B. 50 fps D. 38 fps
36. The commuter category, multiengine airplanes under FAR 23 have a seating
configuration, excluding pilot seats of?
A. 9 or less C. 19 or less
B. 16 or less D. must be exactly 19
37. A commuter category aircraft with the design take-off weight of 14,000 lbs has
minimum positive limit load factor of?
A. 2.1 C. 3.8
B. 3.1 D. 4.4
39. The following aircraft can have a bank angle of more than 60 but less than 90?
A. Acrobatic C. Normal
B. Commuter D. Utility
40. Details the airworthiness standards for airplanes with a maximum take-off weight of
12,500 lbs. or more, such as the Boeing 737 or Airbus A320.
A. FAR part 23 C. FAR part 27
B. FAR part 25 D. FAR part 29
41. In the interest of the national economy and well-being, he shall always strive in the
execution of his work for optimum efficiency, economy and safety. This code of ethics is
under?
A. Relation with the Public
B. Relation with Engineers
C. Relation with the Clients and Employee
D. Relation with the State
42. The first convention for the reservation of sovereignty of airspace by contracting nations
was held at?
A. Warsaw C. Tokyo
B. Paris D. Chicago
43. Area within the runway which can be used to taxi but not for landing
A. Clearance area C. Threshold
B. Blast zone D. Taxi Way
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44. The Board of aeronautical engineering was created under?
A. RA 776 C. CMO 86 of 2007
B. PD 1570 D. RA 9497
45. How long would you have to practice aeronautical engineer to be a board member or
chairman of Aeronautical engineering?
A. 8 years C. 12 years
B. 10 years D. 30 years
46. An aircraft, its engines, propellers, and other components and accessories, are of proper
design and construction being consistent with accepted engineering practice and in
accordance with aerodynamic laws and aircraft science.
A. Reliability C. Airworthiness
B. Acceptability D. Compliance
50. It is the Certificate issued after each maintenance as described in the PCAR.
A. Return to Service C. Certificate of Maintenance
B. Maintenance Release D. Certificate of Release to Service
52. It is the set of processes by which an aircraft, engine, propeller or part complies with the
applicable airworthiness requirements and remains in a condition for safe operation
throughout its operating life.
A. Conformity C. Supplemental Type Certificates
B. Type Certificate D. Continuing Airworthiness
53. It is a notification to owners and operators of certified aircraft that a known safety
deficiency with a particular model of aircraft, engine, avionics or other system exists and
must be corrected. This notification is issued by Aviation authorities.
A. Notam C. Airworthiness Directives
B. Service Bulletin D. Advisory Circular
54. Which license will allow you to approve the Return to Service?
A. AMT License C. PRC issued Aeronautical Engineer License
B. AMS License D. Pilot license
Page 5 of 18
55. Which of the following is the definition of "Maintenance" in the PCAR?
A. It includes inspection, overhaul, repair, preservation, and the replacement of
parts, but excludes preventive maintenance
B. It is the performance of tasks required to ensure the continuing airworthiness of
an aircraft, including any one or combination of overhaul, inspection,
replacement, defect rectification, and the embodiment of a modification or
repair.
C. It is any one or combination of the following activities: overhaul, repair,
inspection, replacement, modification or defect rectification of an aircraft or
component, with the exception of pre-flight inspection.
D. All action taken to retain material in or to restore it to a specified condition. It
includes; inspection, testing, servicing, repair, rebuilding and overhaul.
56. Which Law established the Civil Aviation Authority of the Philippines?
A. RA 776 C. RA 1570
B. RA 9497 D. Civil Aviation Regulations
57. Any machine that can Derive support in the atmosphere from the reactions f the air
other than the reactions of the air against the earth’s surface.
A. Airplane C. Ornithopter
B. Helicopter D. Aircraft
58. Which statement is true regarding repair station requirements in FAR Part 145?
A. All repair stations are required to have a hangar.
B. All repair station certificate expires in one year.
C. Repair station certificates are required even if you will maintain components
only.
D. All repair station personnel must be able to speak English.
59. Which title in the Code of Federal Regulations pertain to Aeronautics and Space?
A. 1 C. 10
B. 6 D. 14
63. Details the airworthiness standards for airplanes with a maximum take-off weight of
12,500 lbs. or more, such as the Boeing 737 or Airbus A320.
A. FAR part 23 C. FAR part 27
B. FAR part 25 D. FAR part 29
64. Which certificate is issued by the authorities when the aircraft conforms to its design?
A. Conformity C. Supplemental Type Certificates
B. Type Certificate D. Continuing Airworthiness
65. Which certificate is issued by the authorities for some changes on a type-certificated
product?
A. Conformity C. Supplemental Type Certificate
B. Type Certificate D. Continuing Airworthiness
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66. Which ICAO annex pertains to Personnel Licensing?
A. 1 C. 2
B. 6 D. 66
67. Which Annex of the Implementing Rule for Continuing Airworthiness contains the
regulations for maintenance licenses?
A. 1 C. 2
B. 3 D. 4
69. The right to fly from another country to one’s own country.
A. 2nd freedom C. 4th freedom
B. 6th freedom D. 7th freedom
72. It is a multilateral treaty by which states agree to prohibit and punish aircraft hijacking.
Also known as Convention for the Suppression of Unlawful Seizure of Aircraft.
A. Rome Convention
B. Warsaw Convention
C. Hague Convention
D. Tokyo Convention
73. Which convention deals with the unification of rules related to damage caused by
aircraft to third parties on the surface
A. Rome Convention
B. Warsaw Convention
C. Hague Convention
D. Tokyo Convention
74. This recognizes certain powers and immunities of the aircraft commander who on
international flights may restrain any person(s) he has reasonable cause to believe is
committing or is about to commit an offence liable to interfere with the safety of
persons or property on board or who is jeopardising good order and discipline.
A. Rome Convention
B. Warsaw Convention
C. Hague Convention
D. Tokyo Convention
75. Uniform rules governing the air carriers’ liabilities with respect to passenger and goods
carried in most international flights were established by the?
A. Rome Convention
B. Warsaw Convention
C. Hague Convention
D. Tokyo Convention
Page 7 of 18
77. Who shall investigate all violations of the provisions of PD1570?
A. Commission C. President of the Philippines
B. Board D. Secretary of the DOTr
78. The maximum take-off weight of commuter category under FAR 23 is?
A. 12,500 lbs C. 17,500 lbs
B. 19,000 lbs D. 22,000 lbs
79. How long is the duration of maintenance organization approvals in accordance with EASA
Part 145?
A. 1 year for organizations located within Europe
B. 2 years for organizations located within Europe
C. 3 years for organizations located within Europe
D. Unlimited
81. Which of the following is not among the qualifications for appointment as member of
the Board of Aeronautical Engineers?
A. A citizen and resident of the Philippines
B. At least thirty years of age, and must be of good moral characters
C. A holder of the degree of Bachelor of Science in Aeronautical Engineering.
D. Had been in active practice of aeronautical engineering
82. Which of the following is not inscribed in the Seal of the Aeronautical Engineer?
A. License Number C. Aeronautical Engineer
B. Name of the Engineer D. Republic of the Philippines
83. What is the maximum diameter of the seal of the Board of Aeronautical Engineering?
A. 45 mm C. 50 mm
B. 48 mm D. 52 mm
84. How long does a Part-145 approved organization have to retain aircraft documents?
A. Two (2) years after the aircraft has been released from the organization.
B. At least four (4) years after the aircraft has been permanently withdrawn from
service.
C. Five (5) years after the aircraft has been permanently withdrawn from service.
D. Three (3) years after the aircraft has been permanently withdrawn from service.
85. In RA 9497, the Board Members are composed of how many members?
A. 9 C. 7
B. 8 D. 6
87. These are publicly owned airports that have at least 2,500 passengers boarding each
calendar year and receive scheduled passenger service.
A. Primary Airports
B. Commercial Service Airports
C. Reliever Airports
D. General Aviation Airports
Page 8 of 18
88. These are airports designated by the FAA to relieve congestion at Commercial Service
Airports and to provide improved general aviation access to the overall community.
A. Primary Airports
B. Commercial Service Airports
C. Reliever Airports
D. General Aviation Airports
89. This airport type is the largest single group of airports in the U.S. system.
A. Primary Airports
B. Commercial Service Airports
C. Reliever Airports
D. General Aviation Airports
90. These are Commercial Service Airports that have more than 10,000 passengers boarding
each year.
A. Primary Airports
B. Commercial Service Airports
C. Reliever Airports
D. General Aviation Airports
93. The height of the marks on the wings of heavier than air aircraft shall be?
A. at least 50 centimeters
B. at least 20 centimeters
C. at least between 20 centimeters and 40 centimeters
D. at least 30 centimeters
94. The height of the marks on the fuselage (or equivalent structure) and on the vertical tail
surfaces of heavier than air aircraft shall be?
A. at least 50 centimeters
B. at least 20 centimeters
C. at least between 20 centimeters and 40 centimeters
D. at least 30 centimeters
95. For the type of characters for Nationality and Registration Markings, the width of each
character (except the letter I and the number 1) and the length of hyphens shall be?
A. One-thirds of the height of a character
B. Two-thirds of the height of a character
C. One-fourths of the height of a character
D. One-eighths of the height of a character
96. A path thru the navigable airspace identified by an area of specified width approved by
the administrator as suitable for air commerce or air transportation is called?
A. Air lane C. Airway
B. Flight path D. Airspace
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97. A person or group of persons who undertakes, whether directly or indirectly, or by lease
or any other arrangements, to engage in air transportation or air commerce is called:
A. Air carrier C. Airman
B. Operator D. Airline
100. A defined area, on a land airport, intended to accommodate aircraft for purposes of
loading or unloading passengers, mail or cargo, fueling, parking or maintenance.
A. Ramp/apron C. Terminal
B. Taxiway D. Parking
102. What is the minimum age to be eligible for a Commercial Pilot license?
A. 16 yrs old C. 17 yrs old
B. 18 yrs old D. 21 yrs old
103. What is the minimum age to be eligible for a Private Pilot license?
A. 16 yrs old C. 17 yrs old
B. 18 yrs old D. 21 yrs old
104. What is the minimum age to be eligible for an Airline transport pilot license?
A. 16 yrs old C. 20 yrs old
B. 18 yrs old D. 21 yrs old
105. What is the minimum age to be eligible for an Aeronautical Engineer license?
A. 16 yrs old C. 20 yrs old
B. 18 yrs old D. 21 yrs old
106. Which ICAO annex pertain to The Safe Transport of Dangerous Goods by Air?
A. Annex 18 C. Annex 12
B. Annex 15 D. Annex 11
108. Civil air regulations governing maintenance, repair and alteration of airframes,
powerplant, propeller and appliances is embodied under:
A. Administrative Order No. 4-A
B. Republic Act 776 as amended by PD 844, 1278, 1462 and E.O. 546
C. Administrative Order No. 60
D. Administrative Order No. 10
Page 10 of 18
109. What is the title of the ICAO annex 7?
A. Units of Measurements
B. Operations of the Aircraft
C. Aircraft Accident and Incident Investigation
D. Aircraft Nationality and Registration Marks
110. When two or more heavier-than-air aircraft are approaching an aerodrome for the
purpose of landing, the right of way is given to?
A. the aircraft at the higher level
B. the aircraft at the lower level
C. both of them at the same time
D. none of them
112. What is the principal amount if the amount of interest at the end of 2 ½ year is P4500
for a simple interest of 6% per annum?
A. P35,000 C. P40,000
B. P30,000 D. P45,000
113. If 16,000 Pesos earns P 480 in 9 months, what is the annual rate of interest?
A. 1% C. 3%
B. 2% D. 4%
115. If a down payment of 600,000 is made on a house and 80,000 a year for the next 12
years is required, what was the price of the house if the money is worth 6%
compounded annually?
A. P1,270,707 C. P1,345,555
B. P1,130,450 D. P1,678,420
116. Find the present value in pesos, of a perpetuity of P15,000 payable semi-annually if
money is worth 8%, compounded quarterly.
A. P371,287 C. P392,422
B. P386,227 D. P358,477
117. Expressed as a percentage per time (% per year), it is an increase in the amount of
money required to purchase the same amount of goods or services over time
A. Depreciation C. Inflation
B. Devaluation D. Deflation
118. Ordinary simple interest is computed on the basis of one banker’s year which is
equivalent to?
A. 365 days C. 360 days
B. 366 days D. 365 and ¼ days
119. A series of payments where the payment period extends forever, which means
periodic payments continue indefinitely?
A. Mortgage C. Perpetuity
B. Rent D. Annuity
120. It is the framework within which the management process can be carried out.
A. Policy C. Organization
B. Rules D. Flow chart
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121. It is the measuring and correcting of activities of subordinates to ensure that events
conform to plans.
A. Planning C. Directing
B. Organizing D. Controlling
122. It states that there is a limit to the number of subordinates a manager can effectively
supervise.
A. Capacity C. Delegation of Authority
B. Span of Control D. Departmentalization
123. A line on a map or chart on which all points have the same magnetic variation for a
specified epoch.
A. Isogriv C. Latitude
B. Isogonal D. Quatrain
126. The manager, acceptable to the Authority, responsible for the management of the
Quality system.
A. Quality Manager C. Accountable Manager
B. Quality Auditor D. Head of Training
127. The AMO shall keep the record of maintenance and airworthiness data of an aircraft
for?
A. 1 year C. 3 years
B. 2 years D. 4 years
128. Find the nominal rate that if converted quarterly could be used instead of 15%
compounded semiannually
A. 14.93% C. 15.56%
B. 14.73% D. 15.90%
129. ____________ are drawn to help visualize problems involving transfers of money at
various points of time.
A. Annuity C. Cash in diagram
B. Cash flow diagram D. Breakeven Analysis
131. It is an economic system where the government owns most of the factors of
production and decides the allocation of resources and what products and services will
be provided.
A. Socialism C. Anarchism
B. Capitalism D. Communism
C.
132. For normal, utility, and acrobatic category airplanes, the height that must be cleared
that is included in the take-off distance is?
A. 30 feet C. 50 feet
B. 35 feet D. 80 feet
133. The positive limit maneuvering load factor n of a utility category airplane, may not be
less than?
A. 2.1 C. 4.4
B. 3.8 D. 6.0
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134. He shall have due regard for the safety of life and health of the public who may be
affected by the work for which he is responsible. This code of ethics is under?
A. Relation with the Public
B. Relation with Engineers
C. Relation with the Clients and Employee
D. Relation with the State
135. He shall uphold the principle of appropriate and adequate compensation for
those engaged in the engineering profession, including those in the
subordinate capabilities in the interest of public service, and maintain the
standards of the profession. This code of ethics is under?
A. Relation with the Public
B. Relation with Engineers
C. Relation with the Clients and Employee
D. Relation with the State
136. He shall not accept any other compensation, financial or otherwise, except from an
interested party for a particular service or other services related therewith, without
the consent of all parties concerned. This code of ethics is under?
A. Relation with the Public
B. Relation with Engineers
C. Relation with the Clients and Employee
D. Relation with the State
137. The minimum number of hand fire extinguishers for aircraft carrying 201 to 300
passengers must be
A. 1 C. 3
B. 2 D. 4
138. It is the maximum number of consecutive terms an individual can serve as member of
the board.
A. 1 C. 3
B. 2 D. 4
139. A price tag of P 1,200 is payable in 60 days but if paid within 30 days it will have a 3%
discount. Find the rate of interest.
A. 36.12% C. 37.11%
B. 36.33% D. 37.66%
140. P 5000 is borrowed for 75 days at 16 % per annum simple interest. How much will be
the due at the end of 75 days?
A. P5,166.67 C. P5,333.33
B. P5,238.67 D. P5,412.67
141. What is defined as the future value minus the present value?
A. Yield C. Capital
B. Rate of Return D. Discount
143. The exact simple interest of P5000 invested from June 21,1995 to December 25,1995
is P100.What is the rate of interest?
A. 3.50% C. 3.70%
B. 3.60% D. 3.90%
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145. The imprisonment period for violating the law governing the practice of Aeronautical
Engineering is ________________.
A. From one year to ten years
B. From one year to five years
C. From six months to one year
D. From six months to six years
146. Mathematical expression also known as the present value of annuity of one is called?
A. Load factor C. Sinking Fund factor
B. Demand factor D. Present worth factor
148. Following are Authorized Personnel to Approve for Return to Service of an aircraft
except:
A. Pilot licensed by the authority
B. Licensed Aviation Maintenance Technician
C. Authorized representative of an AMO
D. Avionics Maintenance specialist
150. The quantity of certain commodity that is offered for sale at a certain price at a given
time and place is known as ________.
A. Supply C. Necessity
B. Demand D. Utility
151. The quantity of certain commodity that is bought at a certain price at a given time
and place is known as _______.
A. Supply C. Necessity
B. Demand D. Utility
153. The paper currency issued by the central bank which forms part of the country’s
money supply.
A. T-bills C. Check
B. Bank note D. Coupon
154. The _______ in the seal of an Aeronautical Engineer symbolizes that the Aeronautical
Engineering is a dynamic and progressive profession.
A. Wing Section C. Atoms
B. Shock Waves D. Electrons
155. The _______, as a whole, in the seal of an Aeronautical Engineer symbolizes major
activities or areas in the practice of Aeronautical Engineering.
A. Wing Section C. Atoms
B. Shock Waves D. Electrons
Page 14 of 18
157. Who shall organize an Aircraft accidents Investigation and Inquiry Board?
A. CAB C. DOTr
B. PRC D. CAAP
158. What refers to an imaginary cost representing what will not be received if a particular
strategy is rejected?
A. Ghost Cost C. Null cost
B. Horizon cost D. Opportunity
160. The manager who has corporate authority for ensuring that all maintenance,
preventive maintenance and modification required by the aircraft owner/operator
can be financed and carried out to the standard required by the Authority.
A. Director for Finance
B. Director for Operations
C. Director for Quality and Safety
D. Accountable Manager
161. The Paris Convention of 1919 defined the status of international airspace and gave
the authority to the Commander of the aeroplane to act in accordance with what
law?
A. The Law of the State of the Operator
B. The Law of the State of Registration
C. The Law of the State of the Aerodrome before Departure
D. International Law
163. ________ is a type of annuity where the payments are made at the end of each
period beginning from the first period.
A. Ordinary Annuity C. Annuity Due
B. Deferred Annuity D. Perpetuity
164. ________ is a type of annuity that does not have a fixed time span but continues
indefinitely.
A. Ordinary Annuity C. Annuity Due
B. Deferred Annuity D. Perpetuity
165. ________ is a type of annuity where the payments are made at the beginning of each
period starting from the first period.
A. Ordinary Annuity C. Annuity Due
B. Deferred Annuity D. Perpetuity
166. ________ is a type of annuity where the first payment does not begin until some
later date in the cash flow.
A. Ordinary Annuity C. Annuity Due
B. Deferred Annuity D. Perpetuity
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167. ________ is the study or science of the production, distribution and consumption of
goods and services.
A. Engineering C. Economy
B. Economics D. Ecology
168. ________ are those unaffected by changes in activity level over a feasible range of
operations for the capacity or capability available.
A. Recurring Cost C. Variable Cost
B. Fixed Cost D. Incremental Cost
169. ________ are those associated with an operation that varies in total with the
quantity of output or other measures of activity level.
A. Recurring Cost C. Variable Cost
B. Fixed Cost D. Incremental Cost
170. Is the additional cost, or revenue, that results from increasing the output of a system
by one (or more) units?
A. Recurring Cost C. Variable Cost
B. Fixed Cost D. Incremental Cost
171. Refers to a summation of all costs, recurring and nonrecurring, related to a product,
structure, system, or service during its life span.
A. Life-cycle Cost C. Sunk Cost
B. Opportunity Cost D. Cash Cost
172. Occurs in a situation in which any given product supplied by a large number of
vendors and there is no restriction on additional vendors entering the market
A. Oligopoly C. Monopoly
B. Monopsony D. Perfect Competition
174. A market whereby there is only one buyer of an item for which there are no goods
substitute.
A. Monopoly C. Oligopoly
B. Monopsony D. Oligopsony
176. Artificial expenses that spreads the purchase price of an asset or another property
over a number of years.
A. Amnesty C. Depreciation
B. Bond D. Sinking fund
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180. Type of ownership in business where individuals exercise and enjoy the right in their
own interest.
A. Equitable C. Private
B. Public D. Pure
181. An association of two or more individuals for the purpose of operating a business as
co-owners for profit.
A. Company C. Partnership
B. Corporation D. Sole proprietorship
183. It is the amount which 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. Book value C. Market value
B. Fair value D. Salvage value
184. 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. Luxuries C. Product goods and services
B. Necessities D. Utilities
185. 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. Monopoly C. Perfect competition
B. Oligopoly D. Semi-monopoly
187. The length of time which the property may be operated at a point.
A. Economic life C. Physical life
B. Operating life D. All of the above
188. The present worth of all depreciation over the economic life of the item is called?
A. book value C. depreciation recovery
B. capital recovery D. sinking fund
189. Gross profit, sales less cost of goods sold, as percentage of sale is called?
A. gross margin C. profit margin
B. net income D. rate of return
190. A market situation where there is only one seller with many buyers.
A. Monopoly C. Oligopoly
B. Monopsony D. Oligopsony
191. A market situation where there are only two buyers with many sellers.
A. Duopoly C. Oligopoly
B. Duopsony D. Oligopsony
192. 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. Interest rate C. Time and Value of money
B. Present worth factor D. Yield
193. The flow back of profit plus depreciation from a given project is called
A. cash flow C. earning value
B. capital recovery D. economic return
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194. The profit derived from a project or business enterprise without consideration of
obligations to financial contributors or claims of other based on profit.
A. Earning value C. Expected yield
B. Economic return D. Yield
195. The interest rate at which the present work of the cash flow on a project is zero of
the interest earned by an investment.
A. Effective rate C. Rate of return
B. Nominal rate D. Yield
196. The ratio of the interest payment to the principal for a given unit of time and usually
expressed as a percentage of the principal.
A. Interest C. Investment
B. Interest rate D. All of the above
197. 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 dept by either periodic
or irregular prearranged program is called
A. amortization C. annuity factor
B. annuity D. capital recovery
198. A method of computing depreciation in which the annual charge is a fixed percentage
of the depreciated book value at the beginning of the year to which the depreciation
applies.
A. Declining balance method
B. Sinking fund method
C. Straight line method
D. SYD method
199. 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. Declining balance method
B. Sinking fund method
C. Straight line method
D. SYD method
200. Which of the following depreciation methods cannot have a salvage value of zero?
A. Declining balance method
B. Sinking fund method
C. Straight line method
D. SYD method
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