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Engineering Economics

Engineering Economics
What refers to the claim of anyone to ownership?

Proprietorship
Liability
Assets
Equity

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

Leverage
Solvency
Liquidity
Insolvency

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Engineering Economics
What is considered as the standard unit which forms the basis of a country’s domestic money supply?

Foreign exchange
Cash or check
Monetary unit
Currency

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Engineering Economics
A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries.

Joint bond
Security bond
Collateral trust bond
Mortgage bond

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Engineering Economics
The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.

$ 5,000,000.00
$ 5,050,000.00
$ 5,025,000.00
$ 5,010,000.00

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Engineering Economics
An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method

P 3,279.27
P 3,729.27
P 3,792.72
P 3,927.27

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