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Engineering Economy
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Question
Ratio analysis of a construction firm is used for analysis by :
Options
A. share holders
B. firm's management
C. Banks of the firm
D. financial analysts
E. All of these.
Correct Answer
financial analysts
Engineering Economy problems
Search Results
1. Both architect and engineer make use of the cost estimate of the project:
Options
A. for site selection
B. for designing of the project
C. for choosing alternatives
D. All of these
Show Answer
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Discuss
Correct Answer: All of these
2. 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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Discuss
Correct Answer:
3. 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
4. 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
5. 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
6. If
a
is the base amount expenditure,
b
is the increase in the operation cost each year over a period of
n
years, the total cost of maintenance is :
Options
A.
a
+ (
n
+ 1)
b
B.
a
+ (
n
- 1)
b
C.
a
x (
n
- 1)
b
D.
a
- (
n
- 1)
b
Show Answer
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Discuss
Correct Answer:
a
+ (
n
- 1)
b
7. Present worth Annuity (PWA) is generally known as
Options
A. Premium annuities
B. Income annuities
C. Future annuities
D. All of these
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Correct Answer: All of these
8. The construction estimate of a project is used by :
Options
A. the owner of the facility
B. the consulting architect/engineer
C. the contractor of the project
D. All of these
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Correct Answer: All of these
9. A construction estimate is used
Options
A. to judge tentatively or approximate value of the project
B. to produce a statement of the approximate cost
C. to decide an approximation of the value of the project and not the exact cost.
D. None of these
Show Answer
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Correct Answer: to decide an approximation of the value of the project and not the exact cost.
10. In a cash-flow diagram :
Options
A. Time 0 is considered to be the present
B. Time 1 is considered to be the end of time period 1
C. A vertical arrow pointing up indicates a positive cash flow
D. An arrow pointing downward indicates a negative cash flow
E. All of these
Show Answer
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Discuss
Correct Answer: All of these
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