ENGINEERING ECONOMICS QUIZ

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

Liquidity ratio

Debts ratio

Current ratio

Acid-Test (or Quick) ratio

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What is defined as the reduction of the value of certain natural resources such as mines, oil, timber, quarries, etc. due to the gradual extraction of its contents?

Depletion

Inflation

Deflation

Depreciation

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The project contractor relies on the cost of the estimate:

For preparation of a definitive estimate to help negotiate contract

For a unit price contract

For submission of a competitive bid for a lump-sum contract

All of these

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What type of bond is issued jointly by two or more corporations?

Tie-up bond

Joint bond

Trust bond

Mortgage bond

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What is the type of annuity that does not have a fixed time span but continues indefinitely or forever?

Perpetuity

Ordinary annuity

Annuity due

Deferred annuity

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You borrow P3,500.00 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. How much lesser you will pay by borrowing the money from the bank?

P37.56

P44.55

P54.66

P 62.44

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A student plans to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he plans to withdraw P5,000 three years from after his last deposit for the purpose of buying shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10%.

P1,945.64

P1,345.98

P1,549.64

P1,459.64

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

Assets

Funds

Capital

Liabilities

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Using factor method, the depletion at any given year is equal to:

Initial cost of property times number of unit sold during the year divided by the total units in property

Initial cost of property divided by the number of units sold during the year

Initial cost of property times number of units sold during the year

Initial cost of property divided by the total units in property

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

None of these

To keep the project cost equal to original cost estimate

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

To keep the project cost equal to subsequent construction budget

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