True or False Quiz

This online quiz contains 8 questions. Click on the button next to the selection that best answers the question. To review your results, click on the Submit Answers button displayed after the last question. Good luck!

1		A nominal interest rate always has a compounding period equal to or less than a year.
			A)	TRUE
			B)	FALSE
2		If the compounding period is not stated for a particular interest rate, it is assumed to be equal to the period over which the interest rate is expressed.
			A)	TRUE
			B)	FALSE
3		For an interest rate that is compounded annually, it is possible to calculate an effective interest rate for a three-year time period just by multiplying the annual rate by three.
			A)	TRUE
			B)	FALSE
4		Depreciation is a reduction in value of an asset which reflects its actual usage during ownership.
			A)	TRUE
			B)	FALSE
5		Market value represents the remaining undepreciated investment on the books after the depreciation charges to date have been subtracted.
			A)	TRUE
			B)	FALSE
6		Recovery period refers to the depreciable life of an asset.
			A)	TRUE
			B)	FALSE
7		Although land is considered as real property, it is not depreciable.
			A)	TRUE
			B)	FALSE
8		Switching from declining balance depreciation to straight line depreciation is an inherent feature of the straight-line alternative (option) to the MACRS depreciation method.
			A)	TRUE
			B)	FALSE