ENGINEERING ECONOMICS QUIZ

The common ratio is the ratio of:

Current assets to current liabilities

Gross profit to net sales

Net income to owner’s equity

Net credit sales to average net receivable

TRUE ANSWER : ?
YOUR ANSWER : ?

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

Return of investment ratio

Profit margin ratio

Quick ratio

Price-earnings ratio

TRUE ANSWER : ?
YOUR ANSWER : ?

What refers to the present worth of all the amount the bondholder will receive through his possession of the bond?

Par value of bond

Value of bond

Face value of bond

Redeemed value of bond

TRUE ANSWER : ?
YOUR ANSWER : ?

What is the simplest form of business organization?

Sole proprietorship

Enterprise

Corporation

Partnership

TRUE ANSWER : ?
YOUR ANSWER : ?

What is the basic accounting equation?

Assets = liability + owner’s equity

Owner’s equity = liability – assets

Owner’s equity = assets + liability

Liability = assets + owners’ equity

TRUE ANSWER : ?
YOUR ANSWER : ?

Pick up the correct method adopted for developing the approximate or conceptual estimates from the following:

Cost per function method

All of these

Cost per square metre

Base unit method

TRUE ANSWER : ?
YOUR ANSWER : ?

How long will it take money to double itself if invested at 5% compounded annually?

13.7 years

15.3 years

14.7 years

14.2 years

TRUE ANSWER : ?
YOUR ANSWER : ?

What do you call a one-time credit against taxes?

Revenue credit

Tax credit

Credible credit

Due credit

TRUE ANSWER : ?
YOUR ANSWER : ?

The ratio of current assets to current liabilities is known as

Debts ratio

Current ratio

Liquidity ratio

Acid-Test (or Quick) ratio

TRUE ANSWER : ?
YOUR ANSWER : ?

Capitalized cost of a project is also known as ______.

Infinite cost

Life cycle cost

Life cost

Project cost

TRUE ANSWER : ?
YOUR ANSWER : ?

↑