ENGINEERING ECONOMICS QUIZ

What is another term for “acid-test ratio”?

Price-earnings ratio

Current ratio

Profit margin ratio

Quick ratio

TRUE ANSWER : ?
YOUR ANSWER : ?

If there is only one seller and many buyers, the market situation is ________ .

Duopsony

Oligopsony

Oligopoly

Monopoly

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A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.

30.78 %

28.33 %

30.12 %

29.17 %

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The alternatives which are standalone solutions for given situations in engineering involve:

The anticipated resalable value (salvage value) and the interest return (rate of return)

The anticipated life of the assets

A purchase cost (first cost)

All of these

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Each financial ratio is generally compared by

A ratio of some selected firms most progressive and successful at the point of consideration

A ratio developed by using the projected financial statement of the firm

All of these

A past ratio calculated from the past financial standard of the firm

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A man loans P 187,400 from a bank with interest at 5% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 years. Find the annual payments.

P 43,600.10

P 43,489.47

P 43,763.20

P 43,263.91

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YOUR ANSWER : ?

What is the simplest form of business organization?

Corporation

Sole proprietorship

Partnership

Enterprise

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Duopoly is a market situation where there is/are:

One seller and few buyers

Few sellers and few buyers

Few sellers and many buyers

Many sellers and few buyers

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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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YOUR ANSWER : ?

Which one of the following is not a construction estimate?

Conceptual preliminary budget

Initial feasibility estimate

None of these

Definite estimate

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