AACE International AACE Certification CCP Questions & Answers

• Question 11:

  If you deposit $100 per month for two (2) years and earn interest at 12% APR (Annual Percentage Rate) compounded monthly, how much will you have at the end of the period?

  A. $2,424

  B. $2,976

  C. $2,688

  D. $2,697

  Correct Answer: A

• Question 12:

  An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

  Answer the question using a straight line depreciation and a 10% interest rate.

  Which of the following should be included in the life-cycle cost analysis of a power plant?

  A. Construction cost, operating cost, maintenance cost

  B. Factory expenses, distribution expenses, mark-up

  C. Capacity factor, end product units, physical dimensions

  D. Resources, work activities, final cost objects

  Correct Answer: A

• Question 13:

  An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures

  were to be $12,000.

  Answer the question using a straight line depreciation and a 10% interest rate.

  Which of the following is considered a measure of profitability?

  A. Rate of return

  B. Annual Dividends

  C. Total assets

  D. Annual sales

  Correct Answer: A

• Question 14:

  An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures

  were to be $12,000.

  Answer the question using a straight line depreciation and a 10% interest rate.

  The main financial objective of many enterprises is:

  A. To maximize the total long-term economic return

  B. Subject to a well-conceived quality control plan

  C. To balance opportunities and risks

  D. Dependent on the backlog projects and the availability of resources

  Correct Answer: A

• Question 15:

  An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

  Answer the question using a straight line depreciation and a 10% interest rate.

  The following question requires your selection of CCC/CCE Scenario 17 (4.2.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses. Assuming a 53% tax rate, how much cumulative depreciation will have been claimed at the end of the grain elevator's life span?

  A. None

  B. $42,400

  C. $37,600

  D. $80,000

  Correct Answer: D

• Question 16:

  An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures

  were to be $12,000.

  Answer the question using a straight line depreciation and a 10% interest rate.

  The following question requires your selection of CCC/CCE Scenario 17 (4.2.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

  Annual estimated tax would be:

  A. $3,869

  B. $5,565

  C. $10,500

  D. $11,925

  Correct Answer: B

• Question 17:

  An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures

  were to be $12,000.

  Answer the question using a straight line depreciation and a 10% interest rate.

  The following question requires your selection of CCC/CCE Scenario 17 (4.2.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

  All of the following are included in "income tax" calculations except:

  A. Annual income

  B. Annual expenditures

  C. Depreciation

  D. Initial cost of investment

  Correct Answer: D

• Question 18:

  An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures

  were to be $12,000.

  Answer the question using a straight line depreciation and a 10% interest rate.

  The following question requires your selection of CCC/CCE Scenario 17 (4.2.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

  Depreciation (in the United States) is calculated in accordance with which of the following?

  A. Modified Accelerated Cost Recovery System (MACRS)

  B. The Federal IRS Reform Act (FIRSRA)

  C. Generally Accepted Accounting Practices (GAAP)

  D. Accelerated Cost Recovery System (ACRS)

  Correct Answer: D

• Question 19:

  An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures

  were to be $12,000.

  Answer the question using a straight line depreciation and a 10% interest rate.

  The following question requires your selection of CCC/CCE Scenario 17 (4.2.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

  What is the "book value (BV) of the asset at the end of 5 years?

  A. $64,000

  B. $16,000

  C. $3,200

  D. $60,000

  Correct Answer: A

• Question 20:

  An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures

  were to be $12,000.

  Answer the question using a straight line depreciation and a 10% interest rate.

  The following question requires your selection of CCC/CCE Scenario 17 (4.2.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

  Present worth calculations is represented by which of the following equations?

  

  A. Option A

  B. Option B

  C. Option C

  D. Option D

  Correct Answer: D