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MCQ 86: The purchase cost of assets over its useful life is classified as:

  1. appreciation
  2. depreciation
  3. appreciated assets
  4. appreciated liabilities

MCQ 87: If the future return on common stock is 14% and the rate on T-bonds is 5% then the current market risk premium will be:

  1. 0.19
  2. 0.09
  3. 9
  4. 19

MCQ 88: The difference between actual return on stock and the predicted return is considered as:

  1. probability error
  2. actual error
  3. prediction error
  4. random error

MCQ 89: The process of calculating future value of money from the present value is classified as:

  1. compounding
  2. discounting
  3. money value
  4. stock value

MCQ 90: The type of basic financial statements consist of:

  1. balance sheet and income statement
  2. statement of retained earnings
  3. statement of cash flows
  4. all of the above

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