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Engineering Economics

Engineering Economics
What is a government bond which has an indefinite life rather than a specific maturity?

T-bill
Consol
Debenture
Coupon

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Engineering Economics
The declining balance method is also known as ______.

Modified sinking fund method
Constant percentage method
Double percentage method
Modified SYD method

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Engineering Economics
Gross margin is the ratio of the gross profit to ______.

Quick assets
Inventory turnover
Owner’s equity
Net sale

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Engineering Economics
The common ratio is the ratio of:

Net credit sales to average net receivable
Net income to owner’s equity
Gross profit to net sales
Current assets to current liabilities

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

Leverage
Insolvency
Solvency
Liquidity

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Engineering Economics
What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render?

Functional depreciation
Physical depreciation
Design depreciation
Demand depreciation

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