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Engineering Economics

Engineering Economics
Gross margin is the ratio of the gross profit to ______.

Quick assets
Inventory turnover
Owner’s equity
Net sale

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Engineering Economics
The more critical (or severe) test of the firm's liquidity can be judged by:

Liquidity ratio
Acid-Test (or Quick) ratio
Debts ratio
Current ratio

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

Liabilities
Capital
Assets
Funds

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Engineering Economics
What is the basic accounting equation?

Owner’s equity = assets + liability
Assets = liability + owner’s equity
Owner’s equity = liability – assets
Liability = assets + owners’ equity

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Engineering Economics
If a seller recovers his capital along with accumulated compensating interest not in one single lump-sum payment but in periodical equal payments, over time:

Sinking Fund Annuity is availed
Capital Recovery Annuity fs availed
Present work Annuity is availed
Sinking Fund Annuity is availed

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Engineering Economics
A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year?

P700.12
P705.42
P702.15
P693.12

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