Pick up the correct statement from the following: The capital required to get a

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Question
Pick up the correct statement from the following:
Options
A. The capital required to get a project started is the first cost.
B. The first cost is a single cash flow or a series of cash flows that are made in the beginning of the activity's life span
C. The first cost of purchasing a car is the sum of the down payment, taxes and dealers charges.
D. All of these

Correct Answer

All of these

Engineering Economy problems

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1. Pick up the main purpose of project cost control from the following :
Options
A. To signal immediate warning of uneconomic operations
B. To provide a feed back to the estimator
C. To promote cost consciousness
D. All of these

2. Which method is adopted to develop an approximate or conceptual estimate for perimeter works for buildings from the following:
Options
A. Base unit method
B. Cost per function method
C. Cost per square metre method
D. Cost per cubic metre method
E. Cost per linear metre method

3. Pick up the correct statement from the following:
Options
A. The ratio of current assests, loans and advances, and the current liquidity is called current ratio.
B. Larger the current ratio, larger is the margin of safety.
C. The operating profit is the difference between gross profit and operating expenses.
D. All of these

4. Pick up the correct statement regarding financial statement analysis from the following.
Options
A. Final analysis always involves the use of various financial statements i.e., balance sheet and income statement.
B. The balance sheet is the summary of assests, liabilities and owner's equity of business at a point in time.
C. The income statement is the summary of revenues and expenses of a firm over a particular period of time.
D. All the above

5. Pick up the correct statement from the following:
Options
A. Engineering economy is a collection of mathematical techniques which simplify economic comparisons
B. Engineering economy is a decision assistance tool by which one method will be chosen as the most economically one.
C. For understanding the engineering economy, one should be able to classify the basic terminology and fundamental concepts of economy.
D. All of these.

6. The financial analysis :
Options
A. helps a share holder to compare the expected return on his investment in the firm against the expected return from other alternative investment.
B. helps a bank to know the financial position of the firm for granting a loan to the firm.
C. helps to judge the success of the firm's financial plans.
D. All of these.

8. Pick up the method used for project evaluation and selection in capital budgetting from the following:
Options
A. pay back period
B. Internal ratio of return
C. Net present worth
D. Profitability index
E. All the above

9. Pick up the correct statement from the following:
Options
A. Uniform series compound amount factor =
B. Uniform series present worth factor =
C. Sinking fund factor =
D. Capital recovery factor = where letters carry their usual meanings.
E. All of these

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