ENGINEERING ECONOMICS QUIZ

Mandarin Bank advertises 9.5% account that yields 9.84% annually. Find how often the interest is compounded.

Bimonthly

Monthly

Quarterly

Annually

TRUE ANSWER : ?
YOUR ANSWER : ?

What is defined as the current assets minus inventories and prepaid expenses?

Profit margin ratio

Price-earnings ratio

Quick ratio

Return of investment ratio

TRUE ANSWER : ?
YOUR ANSWER : ?

Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following:

Liquidity ratio

None of these

Financial leverage ratio

Activity ratio

TRUE ANSWER : ?
YOUR ANSWER : ?

Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ______ whichever is smaller.

Fixed percentage of gross income or 50% of the net taxable income

50% of the fixed percentage of gross income or the net taxable income

Fixed percentage of gross income or the net taxable income

50% of the fixed percentage of gross income or 50% of the net taxable income

TRUE ANSWER : ?
YOUR ANSWER : ?

Salvage value is sometimes known as ______.

Going value

Scrap value

Second-hand value

Junk value

TRUE ANSWER : ?
YOUR ANSWER : ?

A uniform series of payment occurring at equal interval of time is called ______.

Depreciation

Annuity

Bond

Amortization

TRUE ANSWER : ?
YOUR ANSWER : ?

What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties?

Fair value

Book value

Market value

Franchise value

TRUE ANSWER : ?
YOUR ANSWER : ?

The key to profitable operation for project cost control, is:

To keep the project cost equal to original cost estimate

None of these

To keep the project cost equal to subsequent construction budget

To keep the project cost within the cost budget and knowing when and where job costs are deviating

TRUE ANSWER : ?
YOUR ANSWER : ?

Which method is adopted to develop an approximate or conceptual estimate for perimeter works for buildings from the following?

Cost per linear metre method

Cost per function method

Base unit method

Cost per square metre method

TRUE ANSWER : ?
YOUR ANSWER : ?

What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?

The initial depreciation is low

The initial deprecation is high

Rate of interest cannot be exactly determined

Unstable economy

TRUE ANSWER : ?
YOUR ANSWER : ?