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Engineering Economics

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

Current ratio
Profit margin ratio
Gross margin
Price-earnings ratio

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Engineering Economics
What is another term for “current assets”?

Liquid assets
Non-liquid assets
Fixed assets
Ccash

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Engineering Economics
You borrow P3,500.00 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. How much lesser you will pay by borrowing the money from the bank?

P44.55
P 62.44
P37.56
P54.66

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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?

Design depreciation
Demand depreciation
Functional depreciation
Physical depreciation

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Engineering Economics
What is the feature of some bonds whereby the issuer can redeem it before it matures?

Return clause
Call class
Recall clause
Callability

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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?

Callable bond
Incorporators bond
Preferred bond
Registered bond

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