What type of bond whose guaranty is in line on railroad equipment, such as freight and passenger cars, locomotives, etc?
ARailroad bond
BEquipment obligation bond
CEquipment bond
DEquipment trust bond
ESAS · Question Bank
Engineering Economics
195 of 208 questions match · page 3 of 10. Answer in your head first, then check the solution.
A type of bond to which are attached coupons indicating the interest due and the date when such interest is to be paid is called _________
Aregistered bond
Bcoupon bond
Cmortgage bond
Dcollateral trust bond
What bond whose security is a mortgage on certain specified assets of the corporation?
ARegistered bond
BCollateral trust bond
CMortgage bond
DDebenture bond
A bond without any security behind them except a promise to pay by the issuing corporation is called _______
Ajoint bond
Bdebenture bond
Ctrust bond
Dcommon bond
A type of bond where the corporation pledges securities which it owns such as the stocks or bonds of one of its subsidiaries
AMortgage bond
BJoint bond
CSecurity bond
DCollateral trust bond
What 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?
APreferred bond
BRegistered bond
CIncorporators bond
DCallable bond
What type of bond which can be redeemed before maturity date?
APreferred bond
BRegistered bond
CIncorporators bond
DCallable bond
What is the feature of some bonds whereby the issuer can redeem it before it matures?
AReturn clause
BCallability
CRecall clause
DCall class
The price at which the callable bond will be redeemed from the bondholder is called _______
Apar value
Bcall value
Cface value
Dredemption value
What is defined as the reduction or fall of the value of an asset due to constant use and passage of time?
ADepletion
BInflation
CDepreciation
DDeflation
In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset?
AStraight line method
BSinking fund method
CSum-of-years digit method
DDeclining balance method
In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year?
AStraight line method
BSinking fund method
CSum-of-years digit method
DDeclining balance method
In SYD method of computing depreciation, which of the ff is the formula in finding the sum of years' digits?
An(n-1)
Bn(n+2)/2
Cn(n-1)/2
Dn(n+1)/2
The declining balance method is also known as ________
ADouble percentage method
BConstant percentage method
CModified sinking fund method
DModified SYD method
What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render?
AFunctional depreciation
BDesign depreciation
CPhysical depreciation
DDemand depreciation
What type of depreciation is due to the reduction of the phyical ability of an equipment or asset to produce result?
AFunctional depreciation
BDesign depreciation
CPhysical depreciation
DDemand depreciation
The functional depreciation is sometimes called ____________
ADemand depreciation
BObsolescence
CLife depreciation
DFailure depreciation
What is defined as the reduction of the value of certain natural resources such as mines, oil, timber, quarries, etc. due to the gradual extraction of its contents?
ADepletion
BInflation
CDepreciation
DDeflation
What are the common methods of computing depletion charge?
ARational method and irrational method
BConservative method and conventional method
CUnit method and percentage method
DDiscrete method and depletion allowance method
Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ________ whichever is smaller
Afixed percentage of gross income or the net taxable income
Bfixed percentage of gross income or 50% of the next taxable income
C50% of the fixed percentage of gross income or 50% of the net taxable income
D50% of the fixed percentage of gross income or the net taxable income