engineering economy MCQs – Page 8

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

engineering economy Mcqs
141. __________________ is the element of value which a business has earned through the favorable consideration and patronage of its costumers arising from its well known and well conducted policies and operations?
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A. Big income

B. Known owners

C. Goodwill

D. Status company

142. What refers to the negotiable claim issued by a bank in lien of a term deposit ?
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A. Capital gain certificate

B. Bond

C. Certificate of deposit

D. Time deposit

143. Lands, buildings, plants and machineries are example of what type of asset ?
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A. Current asset

B. Intangible asset

C. Trade investment asset

D. Fixed asset
144. The true value of interest rate computed by equations for compound interest for a 1 year period is known as __________________?
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A. Economic return

B. Nominal interest

C. Expected return

D. Effective interest
145. An association of two or more persons for the purpose of engaging into a business for profit is called ____________________?
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A. Partnership

B. Corporation

C. Entrepreneurship

D. Proprietorship

146. What is used when a quick estimate of the doubling time for the invested money is needed ?
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A. Rule of 48

B. Rule of 72

C. Rule of 24

D. Rule of 36

147. What is the basic accounting equation ?
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A. Owners equity = assets + liability

B. Liability = assets + owners equity

C. Owners equity = liability assets

D. Assets = liability + owners equity
148. What is defined as the current assets minus inventories and prepaid expenses ?
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A. Return of investment ratio

B. Quick ratio

C. Profit margin ratio

D. Price-earnings ratio

149. Return on investment ratio is the ratio of the_____________?
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A. Market price per share to earnings per share

B. Net credit sales to average net receivable

C. Net income to owners equity

D. Cost of goods sold to average cost of inventory at hand

150. What refers to the saving which takes place because goods are not available for consumption rather than consumer really want to save ?
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A. All of the above

B. Consumer saving

C. Forced saving

D. Compulsory saving

151. The profit derived from a project or business enterprise without consideration of obligations to financial contributors and claims of others based on profit is known as _____________________?
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A. Economic return

B. Gain

C. Yield

D. Earning value

152. What refers to the interest rate at which the present work of the cash flow on a project is zero of the interest earned by an investment ?
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A. Yield

B. Return of investment

C. Economic return

D. Rate of return
153. What is the factor name of the formula [i(1+i)^n]/[((1+i)^n)-1] ?
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A. Uniform series sinking fund

B. Capital recovery

C. Single payment present worth

D. Uniform gradient future worth

154. What is the simplest form of business organization ?
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A. Enterprise

B. Partnership

C. Sole proprietorship

D. Corporation

155. A form of business organization in which a person conducts his business alone and entirely for his own profit, being solely responsible for all its activities and liabilities ?
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A. Entrepreneurship

B. Sole proprietorship

C. Corporation

D. Partnership

156. What is the reduction in the money value of capital asset is called ?
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A. Deficit

B. Capital expenditure

C. Loss

D. Capital loss
157. All are classified under direct labor expenses EXCEPT one. Which one ?
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A. Testing cost

B. Inspection cost

C. Assembly cost

D. Supervision cost
158. What stock represents ownership and enjoys certain preferences than ordinary stock ?
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A. Preferred stock

B. Authorized stock

C. Incorporators stock

D. Presidential stock

159. Which is true about corporation ?
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A. Its life is dependent on the lives of the incorporators.

B. It is worse type of business organization.

C. The stock holders of the corporation are only liable to the extent of their investments.

D. The minimum number of incorporators to start a corporation is three.

160. Is an artificial being created by operation of law, having the right of succession and the process, attributes and properties expressly authorized by the law or incident to its existence ?
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A. Property

B. Partnership

C. Corporation

D. Organization