Certified Energy Manager questions with correct answers

Certified Energy Manager questions with correct answers Depreciation CORRECT ANSWER Assets that decrease in value over time. US Federal Income Tax law permits reasonable deductions for depreciation. This involves borrowing and utilizing money which is to be repaid at a later point in time. CORRECT ANSWER Debit Financing What is the benefit to debt financing under current U.S tax law (as of December 2008)? CORRECT ANSWER Interests payments made by corporations on debit capital are tax deductible. Under this type of financing the lender acquires an ownership position within the borrower's organization. CORRECT ANSWER Equity These are the accumulation of annual earnings surpluses that a company retains within the company's coffers rather than pays out to stockholders as dividends. CORRECT ANSWER Retained Earnings How is taxable income calculated? CORRECT ANSWER Gross Income - Allowable Deduction What method is presently used for calculating depreciation? CORRECT ANSWER MACRS - Modified Accelerated Cost Recovery System What units does a degree day have? CORRECT ANSWER F - Day/Yr What is Energy Use Index, EUI? CORRECT ANSWER Its the ratio of the total amount of Btu used per year per the total square feet of conditioned space. What does NECPA stand for? CORRECT ANSWER National Energy Conversation Policy Act When was the NECPA established? CORRECT ANSWER Established in 1978 Approximately every _____ years a new Energy Policy Act is adopted? CORRECT ANSWER 14 Why was the Energy Policy Act of 1992 enacted? CORRECT ANSWER The Feds came in an with guidelines for the states to established more stringent building energy codes. What was requested by the DOE under the EPA of 1992? CORRECT ANSWER That the private sector established standards for windows, office equipment, and luminaires or the DOE would do it. A energy reduction was established by the EPA 1992, what is it? CORRECT ANSWER 2% per year What does ESPC stand for? CORRECT ANSWER Energy Savings Performance Contracts What type of anaylsis is required by the EPA of 1992? CORRECT ANSWER LLC - Life Cycle Cost Anaylsis