1.

Determine the ordinary simple interest on P5,000 for 9 months and 10 days if the rate
of interest is 12%.

A. 857.14

B. 547.67

C. 687.33

D. 466.67

2. Jeffrey buys an electric fan from a merchant who asks P1,250 at the end of 60 days (cash in
60 days). Jeffrey wishes to pay immediately and the merchant offers to compute the cash price
on the assumption that money is worth 8% simple interest. What is the cash price today?

A. 1,233.55 C. 987.56

B. 1,225.56 D. 1,325.56

3. Determine the exact simple interest on P10,000 for the period from January 15 to June
20, 2004, if the rate of simple interest is 14%.

A. 600.54

B. 500.57

C. 850.54

D. 700.45

4. If a nominal interest rate per year is 12%,and compounding is continuous, what is the
effective interest rate per year?

A. 0.127% B. 11.275%

C. 1.000% D. 12.75%

6. By the conditions of a will, the sum of P25,000 is left to a girl to be held in trust by her
guardian until it amounts to P45,000. When will the girl receive the money if the fund is invested
at 8 percent compounded quarterly.

A. 6th birthday C. 7th birthday

B. 8th birthday D. 9th birthday

7. If the nominal interest rate is 3 percent, how much is P5000 worth in 10 years in a
continuously compounded account?
 A. P6,350

B. P7,650

C. P8,500

D. P6,750

8. How long will it take for an investment to double its amount if invested at an interest rate
of 6% compounded monthly?

A. 10 years

B. 12 years

C. 13 years

D. 14 years

9. How much money you invest today in order to withdraw P2000 annually for 10 years if the
interest rate is 9%?

A. 12,835.32

B. 12,785.45

C. 12,563.25

D. 12,586.47

10. A telephone company installed a new equipment that cost P150,000 and is estimated to have
a useful life of 10 years. It is estimated to have a scrap value at the end of its useful life of
P5,000. If the interest is 12% compounded annually, determine its capitalized cost.

A. P310,254.67 C. P281,425.76

B. P218,855.87 D. P301,425.76

11. A machine is purchased for P100, 000. If the annual maintenance cost is P1, 800, determine
the capitalized cost of perpetual service with an interest rate of 8%.

A. P325,000

B. P523,000

C. P235,000

D. P532,000
12. An equipment costs P480,000 and has a salvage value of 10% of its cost at the end of its
economic life of 35,000 operating hours. In the first year, it was used for 4,000 hours. Determine
its book value at the end of the first year using straight line method.

A. 430,629 C. 340,296

B. 403,269 D. 304,629

13. A printing equipment costs P 73,500 has a life expectancy of 8 yrs. and has a salvage value
of P 3500 at the end of its life. The book value at the end of “x” years is equal to P 38,500. Using
straight line method of depreciation, solve for the value of “x”.

A. 5 years C. 4 years

B. 6 years D. 3 years

14. A broadcasting corporation purchased an equipment that costs P7,000, last 8 years and has a
salvage value of P350. determine the book value during the 4th using declining balance method.

A. P1,711 C. P1,566

B. P5,166 D. P1,645

16. A manufacturer produces certain items at a labor cost per unit of P315, material cost per unit
of P100, and a variable cost of P3.00 per unit. If the item has a selling price of P995, how many
units must be manufactured each month for the manufacturer to break even if the monthly
overhead is P461,600.

A. 500

B. 700

C. 600

D. 800

17. The simplest form of business organization where in the business is own entirely by one
person.
A. Partnership
B. Proprietorship
 C. Corporation
D. Joint venture
18. If a materials is feebly repelled by a magnet it is
A. diamagnetic
B. paramagnetic
C. ferromagnetic
D. ferromagnetic
19. It is where the original record of a business transaction is recorded.
A. Ledger
B. Spreadsheet
C. Journal
D. Logbook
20. The promotional tool that publishes news or information about a product, service, or idea on
behalf of a sponsor but is not paid for by the sponsor.
A. Advertising
B. Publicity
C. Sales promotion
D. Personal selling
21. Refers to a manager’s right to tell subordinates what to do and then see that they do it.
A. Line authority
B. Staff authority
C. Functional authority
D. Head authority
B. This form of business ownership is a legal entity possessing many of the legal powers of
individuals. It can hold title to property, sue and be sued in its own name. It is called:
C. A. corporation
D. B. company
E. C. general partnership
F. D. individual proprietorship

22. It is a product of the weathering of complex silicates, particularly of feldspars which are
abundant minerals.

a. clay
b. chalk
c. pyrite
d.diamond

23. Electrons occupy all the orbitals of a given subshell singly before pairing begins. These
unpaired electrons have parallel spins. This is known as:

a. Building Up Principle
b. Aufbau Principle
c. Hund’s rule
d.David’s rule
24. It is the enthalpy change associated with the condensation of gaseous positive and negative
ion into a crystal.

a Raoult’s Law
b. Lattice Energy
c. Enthalpy Of Solution
d. Partition Coefficient

25. Term used to denote the technology of treating a mined ore to obtain a product higher on
concentration of a wanted mineral from the unwanted rock mass in which it occurs

a. ore dressing
b. galvanization
c. alloying
d. filtering

26. It is a colorless solid capable of being cut into brilliant crystals is the hardest, must abrasive
mineral known

a. Graphite
b. Charcoal
c. Diamond
d. Silicon

27. A homogenous mixture can be separated by all of the following methods except

a. Filtration
b. Chromatography
c. Crystallization
d. Distillation
28. The property of metals that allows them to be drawn into thin wires beyond their elastic
limit without being ruptured is called
A. ductility
B. malleability
C. elasticity
D. hardness
29. Interaction between the surface of two closely adjacent bodies which causes them to cling
together is known as
A. Friction
B. Cohesion
C. Adhesion
D. Viscosity
30. Solids which break above the elastic limit are called
A. Brittle
B. Ductile
C. Plastic
 D. Malleable
31. The property of some elementary particles that causes them to exert force on one another
I known as
A. Potential difference
B. Charge
C. Specific change
D. Nucleon interaction
32. The property which permits the flow of current under the action of a potential difference
is called
A. Resistance
B. Permeance
C. Impedence
D. Conductance
33. When a body is resistant to heat, it is called
A. Thermoscopic
B. Thermotropic
C. Thermoduric
D. Thermoplastic
34. The property of fluids by virtue of which they offer resistance to flow is known as
A. Gummosity
B. Glutinosity
C. Viscidity
D. Viscosity
35. A juridical necessity to give, to do, or not to do.
A. Contracts
B. Obligation
C. Quasi-delicts
D. Condition
36. Obligation comes from the latin word _______ which means to bind.
A. Obligum
B. Obligate
C. Obligare
D. Obligus
37. A legal wrong, committed through fault or negligence, on a person or property,
independent of contract.
A. Contracts
B. Obligation
C. Quasi-delicts
D. Condition
38. A nature of obligation under civil code which is legally demandable and the courts of
justice may compel their performance.
A. Civil Obligations
B. Natural Obligation
C. Pure Obligation
D. Condition
39. A nature of obligation under civil code based on morality, natural law and conscience,
they are not legally demandable.
A. Civil Obligations
B. Natural Obligation
C. Pure Obligation
D. Condition
40. Requisites of obligations which is the vinculum or the link that binds the party
A. Juridical or legal tie
B. Prestation
C. Active subject
D. Passive subject
41. Requisites of obligation consist in giving, doing or not doing something
A. Juridical or legal tie
B. Prestation
C. Active subject
D. Passive subject
42. Requisites of obligation that refers to a person who can demand the performance of the
obligation or known as the creditor or oblige
A. Juridical or legal tie
B. Prestation
C. Active subject
D. Passive subject

43. Requisites of obligation that refers to a person from whom prestation is demandable or
known as the debtor or obligor
A. Juridical or legal tie
B. Prestation
C. Active subject
D. Passive subject
44. One of the following is not considered as a source of obligation.
A. Law
B. Contracts
C. Quai-delicts
D. Work
45. The following are requisites of Quasi-delicts except
A. An act or omission
B. Accompanied by fault or negligence
C. There must be no pre-existing contractual relation between the parties
D. Acts or omissions punished by law
46. An obligation which is not subject to conditions or burdens nor does it mention a specific
date for its fulfillment and as such it is immediately demandable.
A. Pure obligation
B. Condition obligation
C. Reciprocal obligation
D. Alternative obligation
47. An uncertain event which wields an influence on a legal relation.
A. Pure obligation
B. Condition
C. Reciprocal obligation
D. Alternative obligation
48. An obligation which is a subject to a condition.
A. Pure obligation
B. Condition obligation
C. Reciprocal obligation
D. Alternative obligation
49. A kind of condition which suspends the demandability of the obligation until the
fulfillment of the condition.
A. Suspensive Condition
B. Alternative obligation
C. Reciprocal obligation
D. Resolutory obligation
50. A kind of condition that produces the extinguishment of an obligation upon the
happening of the event.
A. Suspensive Condition
B. Alternative obligation
C. Reciprocal obligation
D. Resolutory Condition