engineering economy MCQs – Page 9

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

engineering economy Mcqs

161. What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community ?
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A. Benefit-cost ratio

B. EUAC

C. Rate of return method

D. Annual cost method

162. What is a stock of a product which is held by a trade body or government as a means of regulating the price of that product ?
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A. Stock pile

B. Buffer stock

C. Withheld stock

D. Hoard stock

163. What is a government bond which has an indefinite life rather than a specific maturity ?
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A. T-bill

B. Debenture

C. Coupon

D. Consol

164. Double taxation is a disadvantage of which business organization ?
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A. Enterprise

B. Sole proprietorship

C. Corporation

D. Partnership

165. What is the increase in the money value of a capital asset is called?
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A. Capital stock

B. Profit

C. Capital gain

D. Capital expenditure

166. A form of business firm which is owned and run by a group of individuals for their mutual benefit is called ___________________?
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A. Partnership

B. Cooperative

C. Corporation

D. Enterprise

167. The ability to convert assets to cash quickly is known as ________________?
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A. Insolvency

B. Leverage

C. Liquidity

D. Solvency

168. What refers to the claim of anyone to ownership ?
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A. Equity

B. Assets

C. Proprietorship

D. Liability

169. Gross margin is the ratio of the gross profit to _________________?
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A. Net sale

B. Owners equity

C. Inventory turnover

D. Quick assets

170. All the proceeds which are received by the business as a result of the sale of goods is called _________________?
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A. Net income

B. Net revenue

C. Gross income

D. Total sales

171. Aggregation of individuals formed for the purpose of conducting a business and recognized by law as a fictitious person is called ________________________?
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A. Corporation

B. Partnership

C. Stockholders

D. Investors

172. What refers to the present worth of cost associated with an asset for an infinite period of time ?
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A. Increment cost

B. Operating cost

C. Annual cost

D. Capitalized cost

173. The flow back of profit plus depreciation form a given project is called ___________________?
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A. Earning value

B. Capital recovery

C. Cash flow

D. Economic return

174. Capitalized cost of any structure or property is computed by which formula ?
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A. Annual cost interest of first cost

B. First cost + cost of perpetual maintenance

C. First cost + salvage value

D. First cost + interest of first cost

175. What do you call a one-time credit against taxes ?
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A. Credible credit

B. Due credit

C. Revenue credit

D. Tax credit

176. What is an accounting term that represents an inventory account adjustment ?
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A. Cost of goods sold

B. Standard cost

C. Cost accounting

D. Overhead cost

177. What is a secondary book of accounts, the information of which is obtained from the journal is called ?
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A. Trial balance

B. Ledger

C. Worksheet

D. Balanced sheet

178. What is a measure of the average speed with which accounts receivable are collected ?
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A. Current ratio

B. Quick ratio

C. Receivable turnover

D. Acid test ratio

179. What is an index of short-term paying ability ?
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A. Gross margin

B. Profit margin ratio

C. Current ratio

D. Price-earnings ratio

180. The ability to meet debts as they become due is known as __________________?
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A. Solvency

B. Liquidity

C. Insolvency

D. Leverage

Showing 161 to 180 of 198 mcqs