Engineering Economics

This is an MCQ-based quiz on Engineering Economics.

This includes Capital expenditure, Capital loss, Loss, and Deficit.

Start Quiz

Under ordinary simple interest, how many days in one year?

300 360 365 366

The original record of a business transaction is recorded in this book.

Work book Journal Ledger Account book

What are the common methods of computing depletion charge?

Rational method and irrational method Conservative method and conventional method Unit method and percentage method Discrete method and depletion allowance method

A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?

P 2,500.57 P 2,544.45 P 2,540.56 P 2,504.57

What refers to the goods and services that are desired by human and will be acquired only after all the needs have been satisfied?

Producer products Consumer products Luxury Necessity

A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries.

Mortgage bond Joint bond Security bond Collateral trust bond

What is a measure of the average speed with which accounts receivable are collected?

Current ratio Quick ratio Acid test ratio Receivable turnover

What is the change in cost per unit variable change called?

Variable cost Incremental cost Fixed cost Supplemental cost

What refers to the saving which takes place because goods are not available for consumption rather than consumer really want to save?

Compulsory saving Consumer saving Forced saving All of the above

Cash money and credit necessary to establish and operate an enterprise are generally called ______.

Capital Funds Assets Liabilities

What is called the ratio obtained by dividing "quick assets" by current liabilities?

Acid test ratio Turnover ratio Solvency ratio None of the above

Which of the following option is included in the financial ratios of the firm?

Liquidity ratio Turnover ratio Profitability ratio All of the above

What do the sunk costs include?

A past expenditure An unrecoverd balance An invested capital that cannot be retrieved All of the above

By which of the following can the more important test of the firm"s liquidity be judged?

Debts ratio Current ratio Liquidity ratio Quick Ratio

What is the other name of Present worth Annuity (PWA)?

Future annuities Income annuities Premium annuities All of the Above

Which of the following represents the first cost in computing depreciation of equipment?

Installation expenses Initial taxes and permit fees The original purchase price and freight charges All of the above

Which of the following type of bond can be redeemed before the maturity date?

Callable bond Preferred bond Registered bond Incorporators bond

What is called the process of determining the value or worth of physical property for specific reasons?

Valuation Investment Economy Depletion

...........is an example of intangible asset.

Cash Patents Furniture Investment in subsidiary companies

Which of the following is used to record historical financial transactions?

Ledger system Balance check Bookkeeping system General journal system
Quiz/Test Summary
Title: Engineering Economics
Questions: 20
Contributed by:
Nisha