What is defined as a financial security note issued by businesses or corporations and by the government as a means of borrowing long-term fund?
AT-bills
BSecurities
CBond
DBank notes
ESAS · Question Bank
Engineering Economics
208 of 208 questions match · page 3 of 11. Answer in your head first, then check the solution.
What refers to the present worth of all the amounts the bondholder will receive through his possession of the bond?
APar value of bond
BFace value of bond
CRedeemed value of bond
DValue of bond
What is defined as the certificate of indebtness of corporation usually for a period not less than 10 years and guaranteed by a mortgage on certain assets of a corporation?
ABond
BT-bills
CStock
DPromissory note
What refers to a document that shows proof of legal ownership of a financial security?
ABond
BBank note
CCoupon
DCheck
What type of bond is issued jointly by two or more corporations?
AMortgage bond
BJoint bond
CTie-up bond
DTrust bond
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
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