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Engineering Economics

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

Profit margin ratio
Gross margin
Price-earnings ratio
Current ratio

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Engineering Economics
The common ratio is the ratio of:

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

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Engineering Economics
If ‘S’ is the future capital accumulated in ‘n’ years at the rate of interest ‘I’ per annum, then present worth is:

S/(1 + i)n
None of these
S (1 + i)n
S (1 + i)1/n

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Engineering Economics
Duopoly is a market situation where there is/are:

Few sellers and many buyers
One seller and few buyers
Few sellers and few buyers
Many sellers and few buyers

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Engineering Economics
What is defined as the certificate of indebtedness of corporation usually for a period not less than 10 years and guaranteed by a mortgage on certain assets of a corporation?

T-bills
Stock
Promissory note
Bond

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Engineering Economics
What is the basic accounting equation?

Owner’s equity = liability – assets
Owner’s equity = assets + liability
Liability = assets + owners’ equity
Assets = liability + owner’s equity

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