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Engineering Economics

Engineering Economics
The ratio of current assets to current liabilities is known as

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

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Engineering Economics
The depletion allowance method of computing depletion is commonly known as ______.

Unit method
Sinking fund method
Percentage method
Factor method

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Engineering Economics
The true value of interest rate computed by equations for compound interest for a 1 year period is known as ______.

Effective interest
Nominal interest
Expected return
Economic return

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Engineering Economics
In computing depreciation of an equipment, which of the following represents the first cost?

Initial taxes and permit fees
Installation expenses
The original purchase price and freight charges
All of these

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Engineering Economics
What type of bond where the corporation’s owner name are recorded and the interest is paid periodically to the owners with their asking for it?

Registered bond
Incorporators bond
Preferred bond
Callable bond

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Engineering Economics
“Under conditions of perfect competition, the price at which any given product will be supplied and purchased is the price that will result in the supply and the demand being equal.” This statement is known as the:

Law of supply and demand
Law of demand
Law of diminishing return
Law of supply

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