What refers to the negotiable claim issued by a bank in lieu of a term deposit?
ATime deposit
BBond
CCapital gain certificate
DCertificate of deposit
ESAS · Question Bank
Engineering Economics
208 of 208 questions match · page 7 of 11. Answer in your head first, then check the solution.
What denotes the fall in the exchange rate of one currency in terms of the others? this term usually applies to the floating exchange rate
ACurrency appreciation
BCurrency depreciation
CCurrency devaluation
DCurrency float
The deliberate lowering of the price of a nation's currency in terms of the accepted standard (Gold, American dollar or the british pound) is known as ______
ACurrency appreciation
BCurrency depreciation
CCurrency devaluation
DCurrency float
What refers to the saving which takes place because goods are not available for consumption rather than the consumer really want to save?
ACompulsory saving
BConsumer saving
CForced saving
Dall of these
The flow back of profit plus depreciation from a given project is called ________
Acapital recovery
Bcash flow
Ceconomic return
Dearning value
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 ________
Aannuity
Bamortization
Ccapital recovery
Dannuity factor
Capitalized cost of any structure or property is computed by which formula?
AFirst cost + interest of first cost
BAnnual cost + interest of first cost
CFirst cost + cost of perpetual maintenance
DFirst cost + salvage value
The true value of interest rate computed by equations for compound interest for a 1 year period is known as ________
Aexpected return
Bnominal interest
Ceffective interest
Deconomic return
Return on investment ratio is the ratio of the:
Anet income to owner's equity
Bmarket price per share to earnings per share
Ccost of goods sold to average cost of inventory at hand
Dnet credit sales to average net receivables
Gross margin is the ratio of the gross profit to _________
Anet sales
Bowner's equity
Cinventory turnover
Dquick assets
What is another term for "acid-test ratio"
ACurrent ratio
BQuick ratio
CProfit margin ratio
DPrice-earning ratio
What is a government bond which has an indefinite life rather than a specific maturity?
ACoupon
BT-bill
CDebenture
DConsol
A form of business firm which is owned and run by a group of individuals for their mutual benefit is called _______
Acooperative
Bcorporation
Centerprise
Dpartnership
What is a stock of a product which is held by a trade body or govt as a means of regulating the price of that product?
AStock pile
BHoard stock
CBuffer stock
DWithled stock
The ability to meet debts as they come due is known as ________
Asolvency
Bleverage
Cinsolvency
Dliquidity
What is the basic accounting equation?
AAssets = Liability + Owner's equity
BLiability = Assets + Owner's equity
COwner's equity = Liability + Assets
DOwner's equity = Liability - Assets
The financial health of the company is measured in terms of:
Aliquidity
Bsolvency
Crelative risk
Dall of these
What is an index of short term paying ability?
APrice-earning ratio
BCurrent ratio
CProfit margin ratio
DGross margin
The common ratio is the ratio of:
Anet credit sales to average net receivables
Bcurrent assets to current liabilities
Cgross profit to net sales
Dnet income to owner's equity
What is defined as the current assets minus inventories and prepaid expenses?
AProfit margin ratio
BPrice-earnings ratio
CReturn of investment ratio
DQuick ratio