Engineering Economics MCQ Questions & Answers

41

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

A) Mortgage bond B) Joint bond C) Security bond D) Collateral trust bond

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Answer & Solution

Answer: Option D

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42

What is a measure of the average speed with which accounts receivable are collected?

A) Current ratio B) Quick ratio C) Acid test ratio D) Receivable turnover

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Answer & Solution

Answer: Option D

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43

What is the change in cost per unit variable change called?

A) Variable cost B) Incremental cost C) Fixed cost D) Supplemental cost

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Answer & Solution

Answer: Option B

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44

What refers to the saving which takes place because goods are not available for consumption rather than consumer really want to save?

A) Compulsory saving B) Consumer saving C) Forced saving D) All of the above

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Answer & Solution

Answer: Option C

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45

Cash money and credit necessary to establish and operate an enterprise are generally called ______.

A) Capital B) Funds C) Assets D) Liabilities

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Answer & Solution

Answer: Option A

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46

What is an index of short-term paying ability?

A) Price-earnings ratio B) Current ratio C) Profit margin ratio D) Gross margin

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Answer & Solution

Answer: Option B

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47

Which one of the following statements is correct?

A) The number of years required to recover the initial cash investment in a project, is called Pay Back period (PBP) B) The discount rate that equates the present value of the expected Net Cash Flows (CFs) with the Initial Cash Outflow (ICO) is known as internal rate of return C) The present value of the proposal's net cash flows, less the proposal's initial cash outflow is known as the Net Present Value (NPV) D) All of these

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Answer & Solution

Answer: Option D

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48

If a seller recovers his capital along with accumulated compensating interest not in one single lump-sum payment but in periodical equal payments, over time:

A) Capital Recovery Annuity fs availed B) Present work Annuity is availed C) Sinking Fund Annuity is availed D) None of the above

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Answer & Solution

Answer: Option A

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49

What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest?

A) Effective rate of interest B) Nominal rate of interest C) Compound interest D) Simple interest

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Answer & Solution

Answer: Option C

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50

What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified product and service in a certain region of the country?

A) Company value B) Going value C) Goodwill value D) Franchise value

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Answer & Solution

Answer: Option D

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Engineering Economics MCQ Questions & Answers | Civil Engineering