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Engineering Economy
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Question
Pick up the correct statement from the following:
Options
A. The financial ratio summarises some aspect of the firm's financial condition at the time of preparing a balance sheet.
B. Both the numerator and denominator of financial ratios come directly from the balance sheet.
C. Income statement ratios compare one 'flow' item from the income statement to another flow item from the income statement.
D. Income statement ratios compare a flow item from the income statement to another flow item form the income statement
E. All of these
Correct Answer
All of these
Engineering Economy problems
Search Results
1. If
S
is the future capital accumulated in
n
years at the rate of interest
i
per annum, then present worth is :
Options
A.
B.
S
(1 +
i
)
n
C.
S
(1 +
i
)
1/
n
D. None of these.
Show Answer
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Discuss
Correct Answer:
2. The wages of supervisors and material handlers are charged as :
Options
A. Over head
B. direct labour cost
C. indirect labour cost
D. None of these
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Discuss
Correct Answer: Over head
3. 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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Correct Answer: All of these
4. The capital Recovery Factor (equal payments) of Capital Recovery Annuity is :
Options
A.
B.
C.
D. None of these.
Show Answer
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Correct Answer:
5. 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
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Correct Answer: All of these
6. Pick up the correct statement from the following:
Options
A. A NPV profile graph shows the curvilinear relationship between the net present value of the project and discount rate employed.
B. In a NPV profile, if discount rate is zero, then net present value is simply total cash inflows less the total cash outflows of the project.
C. As the discount rate increases, the net present value profile slopes downward to the right.
D. All of these
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Correct Answer: All of these
7. The ratio of current assests to current liabilities is known as
Options
A. Liquidity ratio
B. Current ratio
C. Acid-Test (or Quick) ratio
D. Debts ratio
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Correct Answer: Current ratio
8. The interest calculated on the basis of 365 days a year, is known as :
Options
A. interest
B. ordinary simple interest
C. exact simple interest
D. None of these
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Correct Answer: exact simple interest
9. Pick up the correct statement from the following:
Options
A. Ratio analysis is the procedure of determining and interpreting numerical relationship of various items of the financial statement.
B. All financial ratios are obtained by relating two sets of information contained in a Single financial statement.
C. The relationship between two accounting figures expressed mathematically, is known as a financial ratio.
D. All of these
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Correct Answer: All of these
10. If interest is paid more than once in a year,
i
is the rate of interest per year,
n
is the number of periods in years and
m
is a number of periods per years, compound amount factor (CAF) is :
Options
A.
B.
C.
D.
Show Answer
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Correct Answer:
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