Engineering Economics MCQ Questions & Answers

61

Which is true about partnership?

A) It has a perpetual life. B) It will be dissolved if one of the partners ceases to be connected with the partnership. C) It can be handed down from one generation of partners to another. D) Its capitalization must be equal for each partner.

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Answer & Solution

Answer: Option C

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62

What refers to the interest rate at which the present work of the cash flow on a project is zero of the interest earned by an investment?

A) Economic return B) Yield C) Rate of return D) Return of investment

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Answer & Solution

Answer: Option C

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63

Capitalized cost of any structure or property is computed by which formula?

A) First cost + interest of first cost B) Annual cost - interest of first cost C) First cost + cost of perpetual maintenance D) First cost + salvage value

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Answer & Solution

Answer: Option C

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64

The more critical (or severe) test of the firm's liquidity can be judged by:

A) Liquidity ratio B) Current ratio C) Acid-Test (or Quick) ratio D) Debts ratio

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Answer & Solution

Answer: Option C

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65

In a cash flow series:

A) Uniform gradient signifies that an income or disbursement changes by the same amount in each interest period B) Either an increase or decrease in the amount of a cash flow is called the gradient C) The gradient in the cash flow may be positive or negative D) All of these

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Answer & Solution

Answer: Option D

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66

A VOM has a selling price of P 400. If its selling price is expected to decline at a rate of 10% per annum due to obsolescence, what will be its selling price after 5 years?

A) P 222.67 B) P 212.90 C) P 236.20 D) P 231.56

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Answer & Solution

Answer: Option C

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67

The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now?

A) 10 months B) 11 months C) 12 months D) 13 months

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Answer & Solution

Answer: Option C

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68

The key to profitable operation for project cost control, is:

A) To keep the project cost equal to original cost estimate B) To keep the project cost equal to subsequent construction budget C) To keep the project cost within the cost budget and knowing when and where job costs are deviating D) None of these

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Answer & Solution

Answer: Option C

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69

What is an accounting term that represents an inventory account adjustment?

A) Cost of goods sold B) Cost accounting C) Standard cost D) Overhead cost

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Answer & Solution

Answer: Option B

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70

Current ratio is:

A) $$\frac{{{\text{Current assets}}}}{{{\text{Current liabilities}}}}$$ B) $$\frac{{{\text{Current assets}} + {\text{Loans}}}}{{{\text{Current liabilities}}}}$$ C) $$\frac{{{\text{Current assets}} + {\text{Loans advances}}}}{{{\text{Current liabilities}}}}$$ D) None of these

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Answer & Solution

Answer: Option A

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Engineering Economics MCQ Questions & Answers | Civil Engineering