Which of the following is not taken into account in making an economic decision between two alternative equipment?
AReliability
BOperating cost
CRate of return
DSalvage value
ESAS · Question Bank
Engineering Economics
195 of 208 questions match · page 10 of 10. Answer in your head first, then check the solution.
What is another term for “acid-test ratio”?
AQuick ratio
BPrice-earning ratio
CCurrent ratio
DProfit margin ratio
Capitalized cost of any property is equal to the
AAnnual cost
BFirst cost + interest of the first cost
CFirst cost + cost of perpetual maintenance
DFirst cost + salvage value
Which of the following statement is not correct?
AA nominal rate of 12% per annum compounded quarterly is the same as 12% ÷ 4 = 3% per quarter.
BOne dollar compounded quarterly at 3% for n years has a worth of \((1.03)^{4n}\) dollars.
CCompounding quarterly at a nominal rate of 12% per year is equivalent to compounding annually at a rate of 12.55%
DEffective rate of return in choices (A) through (C) is the difference between 12.55% and 12%
Which of the following corresponds to the meaning of annuity?
AA lump sum at the end of the year
BAn annual repayment of the loan
CA series of uniform amounts over a period of time
DThe future worth of a present amount
The ability to convert assets to cash quickly is known as ____
ASolvency
BLiquidity
CLeverage
DInsolvency
What is the opposite of perfect competition?
AMonopsony
BOligopoly
COligopsony
DMonopoly
The ability to meet debts as they become due is known as ____
ASolvency
BLeverage
CInsolvency
DLiquidity
One banker’s year is equivalent to ____ days.
A300
B360
C365
D366
Accounting book in which are recorded the credits and debits of commercial transactions.
ABalance
BJournal
CLedger
DClerk’s book
An annuity where the payments are made at the beginning of each period.
AOrdinary annuity
BDeferred annuity
CAnnuity due
DPerpetuity
Which of the following does NOT affect owner’s equity?
ADividends paid
BInvested capital
CExpense to get license of start business
DLicense to start business
What are the two classifications of goods and services?
ALocal and imported
BRaw and finished
CConsumer and producer
DReady-made and made-to-order
What is the factor ( A/F, I % n )?
AUniform series present worth factor
BUniform series compound amount factor
CSinking fund factor
DCapital recovery factor
The residual value of a company’s assets after all outside liabilities (shareholders excluded) have been allowed for
ADividend
BEquity
CReturn
DPar value