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Engineering Economics

Engineering Economics
What is an index of short-term paying ability?

Profit margin ratio
Current ratio
Price-earnings ratio
Gross margin

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Engineering Economics
In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes?

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

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

Unit method
Sinking fund method
Factor method
Percentage method

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Engineering Economics
What is used to record historical financial transactions?

General journal system
Ledger system
Balance check
Bookkeeping system

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

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

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Engineering Economics
A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan?

P 6,999.39
P 6,922.93
P 6,292.93
P 6,222.39

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