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Civil Engineering :: Engineering Economics

  1. A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due?

  2. A.

     P 3,260.34

    B.

     P 3,280.34

    C.

     P 3,270.34

    D.

     P 3,250.34


  3. Return on investment ratio is the ratio of the:

  4. A.

     Net income to owner’s equity

    B.

     Market price per share to earnings per share

    C.

     Cost of goods sold to average cost of inventory at hand

    D.

     Net credit sales to average net receivable


  5. What is considered as the standard unit which forms the basis of a country’s domestic money supply?

  6. A.

     Monetary unit

    B.

     Currency

    C.

     Foreign exchange

    D.

     Cash or check


  7. Which one of the following definitions is correct?

  8. A.

     The ratio of total debt to share holder's equity is called 'debt ratio'

    B.

     The ratio debt-to-total assets is called Debt-to-total assets ratio

    C.

     The ratio of earnings before interest and taxes for a particular reporting period to the amount of interest charges for the period is called interest coverage ratio

    D.

     All of these


  9. Which one of the following is included in financial ratios of the firm?

  10. A.

     Profitability ratio

    B.

     Liquidity ratio

    C.

     Turnover ratio

    D.

     All of these


  11. 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.

  12. A.

     Corporation

    B.

     Property

    C.

     Partnership

    D.

     Organization


  13. Which one of the following questions is relevant to the construction estimates?

  14. A.

     Did the estimators precisely evaluate site conditions

    B.

     Did the estimators use short cut methods which may be unrealistic in their situation

    C.

     How much money will the contractor's risk, loosing if he were to submit bid on the raw estimate of cost

    D.

     All of these


  15. In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset?

  16. A.

     Straight line method

    B.

     Sinking fund method

    C.

     Sum-of-year digit method

    D.

     Declining balance method


  17. What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn?

  18. A.

     Present worth factor

    B.

     Interest rate

    C.

     Time value of money

    D.

     Yield


  19. What do you call any particular raw material or primary product such as cloth, wool, flour, coffee, etc.?

  20. A.

     Utility

    B.

     Necessity

    C.

     Commodity

    D.

     Stock