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Engineering Economics

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

Liquidity
Leverage
Insolvency
Solvency

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Engineering Economics
A loan for P50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of money?

0.0931
0.0901
0.0914
0.0941

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Engineering Economics
What refers to the amount of money paid for the use of borrowed capital?

Rate of interest
Principal
Simple interest
Interest

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Engineering Economics
Current assets less inventories divided by current liabilities is known as

Current ratio
Acid-Test (or Quick) ratio
Debts ratio
Liquidity ratio

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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 231.56
P 236.20
P 212.90
P 222.67

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Engineering Economics
A bond without any security behind them except a promise to pay by the issuing corporation is called ______.

Common bond
Joint bond
Debenture bond
Trust bond

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