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Engineering Economics

Engineering Economics
The ability to meet debts as they become due is known as ______.

Liquidity
Leverage
Solvency
Insolvency

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Engineering Economics
What is the basic accounting equation?

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

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Engineering Economics
What refers to the exchange mechanism that brings together the sellers and the buyers of a product, factor of production or financial security?

Market
Mall
Store
Office

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Engineering Economics
A VOM has a selling price of P 400. If its selling price is expected to decline at a rate of 10% per annum due to obsolescence, what will be its selling price after 5 years?

P 222.67
P 236.20
P 231.56
P 212.90

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Engineering Economics
What is the increase in the money value of a capital asset is called?

Capital stock
Profit
Capital gain
Capital expenditure

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Engineering Economics
What refers to the negotiable claim issued by a bank in lien of a term deposit?

Capital gain certificate
Time deposit
Certificate of deposit
Bond

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