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Engineering Economics

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

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

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Engineering Economics
In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year?

Straight line method
Declining balance method
Sinking fund method
Sum-of-year digit method

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Engineering Economics
The amount of company’s profit that the board of directors of the corporation decides to distribute to ordinary shareholders is called ______.

Return
Dividend
Share of stock
Equity

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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?

0.0914
0.0931
0.0901
0.0941

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Engineering Economics
Shell Philippines, a multinational company, has a total gross income for a particular year of P 50,000,000. The taxable income after taking all deductions except for depletion is P 18,500,000. What is the allowable depletion allowance for that particular year? Take percentage of gross income for oil as 22%.

P 9,228.45
P 9,250.00
P 9,308.45
P 9,358.41

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Engineering Economics
A uniform series of payment occurring at equal interval of time is called ______.

Annuity
Depreciation
Amortization
Bond

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