Engineering Economy problems
- 1. Liquidity ratios are used :
Options- A. to measure a firms ability to meet short-cut obligations.
- B. to compare short term obligations to short-term resources available to meet these obligations.
- C. to obtain much insight into the present cash solvency of the firm and the firm's ability to remain solvent in the event of adversity.
- D. All of these Discuss
Correct Answer: All of these
- 2. In the cash flow diagram shown in the given figure
Options- A. The first disbursement occurs at the end of year 2
- B. The second disbursement occurs at the end of year 4
- C. The first receipt occurs at the end of year 1
- D. The second receipt occurs at the end of year 3
- E. All of these Discuss
Correct Answer: All of these
- 3. Pick up the correct method adopted for developing the approximate or conceptual estimates from the following :
Options- A. Base unit method
- B. Cost per function method
- C. Cost per square metre
- D. Cost per linear unit
- E. All of these Discuss
Correct Answer: All of these
- 4. The person desires to pay off the amount in 10 equal annual instalments. The amount of each instalment is :
Options- A. Rs 5638
- B. Rs 6638
- C. Rs 7738
- D. None of these Discuss
Correct Answer: Rs 5638
- 5. Earning per share is the most important ratio for
Options- A. share holders
- B. banks
- C. company's management
- D. All of these Discuss
Correct Answer: All of these
- 6. 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. Discuss
Correct Answer: All of these.
- 7. 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 Discuss
Correct Answer: All the above
- 8. 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 Discuss
Correct Answer: All of these
- 9. 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 Discuss
Correct Answer: Cost per linear metre method
- 10. 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 Discuss
Correct Answer: All of these
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