engineering economy MCQs – Page 10

Practise focused engineering economy questions with marked answers for exam preparation and subject revision.

engineering economy Mcqs

181. What is another term for current assets ?
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A. Fixed assets

B. Non-liquid assets

C. Liquid assets

D. Ccash

182. The original record of a business transaction is recorded in this book_____________?
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A. Ledger

B. Account book

C. Journal

D. Work book

183. The ratio of the net income before taxes to net sales is called __________________?
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A. Price-earnings ratio

B. Profit margin ratio

C. Inventory turnover

D. Current ratio

184. What is the change in cost per unit variable change called ?
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A. Supplemental cost

B. Variable cost

C. Fixed cost

D. Incremental cost

185. Capitalized cost of a project is also known as ____________________?
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A. Life cycle cost

B. Life cost

C. Project cost

D. Infinite cost

186. What represents the share of participation in business organizations?
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A. Stock

B. Franchise

C. Partnership

D. Corporation

187. The financial health of the company is measured in terms of______________?
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A. Solvency

B. All of the above

C. Liquidity

D. Relative risk

188. In case of bankruptcy of a partnership________________?
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A. The partnership assets (excluding the partners personal assets) only will be used to pay the liabilities

B. The partners are not liable for the liabilities of the partnership

C. The partners nay sell stock to generate additional capital

D. The partners personal assets are attached to the debt of the partnership

189. What refers to the residual value of a companys assets after all outside liabilities (shareholders excluded) have been allowed for ?
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A. Dividend

B. Par value

C. Return

D. Equity

190. As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called ___________________?
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A. Capital recovery

B. Annuity factor

C. Annuity

D. Amortization

191. What refers to an imaginary cost representing what will not be received if a particular strategy is rejected ?
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A. Opportunity cost

B. Ghost cost

C. Null cost

D. Horizon cost

192. Which is true about partnership ?
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A. It will be dissolved if one of the partners ceases to be connected with the partnership

B. Its capitalization must be equal for each partner

C. It has a perpetual life

D. It can be handed down from one generation of partners to another

193. What denotes in the fall in the exchange rate of one currency in terms of the others? This term is usually applies to the floating exchange rate______________?
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A. Currency depreciation

B. Currency appreciation

C. Currency devaluation

D. Currency float

194. What is another term for acid-test ratio ?
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A. Price-earnings ratio

B. Quick ratio

C. Profit margin ratio

D. Current ratio

195. Which of the following is an example of intangible asset ?
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A. Cash

B. Patents

C. Furnitures

D. Investment in subsidiary companies

196. What is used to record historical financial transactions ?
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A. Bookkeeping system

B. Ledger system

C. General journal system

D. Balance check

197. The amount of companys profit that the board of directors of the corporation decides to distribute to ordinary shareholders is called ___________________?
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A. Equity

B. Share of stock

C. Return

D. Dividend

198. What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry ?
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A. Unstable economy

B. Rate of interest cannot be exactly determined

C. The initial deprecation is high

D. The initial depreciation is low

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