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  • Question
  • Pick up the correct statement from the following:


  • Options
  • A. The ability of a company to meet obligations which are likely to mature in short term, is called liquidity.
  • B. The liquidity ratio may be defined as a relationship of current liabilities and current assests and advances.
  • C. The liquidity ratios are used to indicate the financial position of the firm.
  • D. All of these

  • Correct Answer
  • All of these 


  • Engineering Economy problems


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    • 1. Refer to the cash flow diagram of uniform gradient in a cash flow (in the given figure), the gradient is :

    • Options
    • A. Rs 10000 per year
    • B. Rs 15000 per year
    • C. Rs 20000 per year
    • D. Rs 25000 per year
    • Discuss
    • 2. Pick up the element of the cost from the following:

    • Options
    • A. direct material
    • B. direct labour
    • C. Over head
    • D. All of these
    • Discuss
    • 3. The financial analysis helps to judge:

    • Options
    • A. The operational efficiency of the firm
    • B. The financial position of the firm.
    • C. Both (a) and (b)
    • D. Neither (a) nor (b)
    • Discuss
    • 4. Current assests less inventories divided by current liabilities is known as

    • Options
    • A. Liquidity ratio
    • B. Current ratio
    • C. Acid-Test (or Quick) ratio
    • D. Debts ratio
    • Discuss
    • 5. Pick up the correct reason for making conceptual (or preliminary) estimate from the following:

    • Options
    • A. To have a check on a definitive cost estimate.
    • B. To check qoutations from contractors and/or sub contractors.
    • C. To compute target estimate for the owner while drawings and specifications are in initial stage.
    • D. All of these.
    • Discuss
    • 6. If P is principal amount, i is the rate of interest and n is the number of periods in years, then the interest factor is :

    • Options
    • A. (1 + ni)
    • B. (ni - 1)
    • C. ni
    • D. None of these
    • Discuss
    • 7. Pick up the correct statement from the following:

    • Options
    • A. An annuity is a series of equal payments occurring at equal period of time.
    • B. Annuity is called an equal payment or uniform payment series.
    • C. An annuity may have periods of time of any length but should always be of equal length.
    • D. All the above.
    • Discuss
    • 8. The key to profitable operation for project cost control, is :

    • Options
    • 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
    • Discuss
    • 9. Probabilistic estimating of a construction project includes:

    • Options
    • A. Labour
    • B. Productivity
    • C. wage scale
    • D. All of these
    • Discuss
    • 10. Pick up the correct statement from the following:

    • Options
    • A.
    • B. Over head cost per unit = Overhead ratio x direct labour cost/unit
    • C. both (a) and (b)
    • D. neither (a) nor (6)
    • Discuss


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