The ratio obtained by dividing 'quick assests' by current liabilities is called

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Question
The ratio obtained by dividing 'quick assests' by current liabilities is called
Options
A. Turnover ratio
B. Acid test ratio
C. Solvency ratio
D. None of these.

Correct Answer

Acid test ratio

Engineering Economy problems

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1. The estimator for definitive estimates must be able :
Options
A. and an all-around construction expert.
B. to read the plans and specifications to determine accurate quantities of permanent materials and installed Equipment.
C. to express the job material requirements in dimensions suitable for costing and construction supplies.

2. Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following:
Options
A. Liquidity ratio
B. Financial leverage ratio
C. Activity ratio
D. Portability
E. None of these

3. The estimate based on a detailed quantity survey and furnishes the most accurate and reliable estimate possible is known as
Options
A. Conceptual estimate
B. Definitive estimate
C. Probabilistic estimate
D. None of these

6. Which one of the following is included in financial ratios of the firm?
Options
A. Profitability ratio
B. Liquidity ratio
C. Turnover ratio
D. Ratio of overall performances
E. All of these

7. The alternatives which are standalone solutions for given situations in engineering involve :
Options
A. a purchase cost (first cost)
B. the anticipated life of the assest
C. the yearly costs of maintaining the assest (annual maintenance and operating cost)
D. the anticipated resaleable value (salvage value) and the interest return (rate of return)
E. All of these

9. Which one of the following questions is relevant to the construction estimates :
Options
A. Did the estimators precisely evaluate site conditions ?
B. Did the estimators use short cut methods which may be un realistic in their situation ?
C. How much money will the contractor's risk, loosing if he Were to submit bid on the raw estimate of cost.
D. All of these

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