Engineering Economics MCQ

Engineering Economics MCQ

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  • 07th Apr, 2022

Engineering Economics MCQ Questions

Take Engineering Economics MCQ Test & Online Quiz to test your Knowledge

Below is the Engineering Economics MCQ test that checks your basic knowledge of Engineering Economics. This Engineering Economics MCQ Test contains 20 Multiple Choice Questions. You have to select the right answer to the question. finally, apart from this, you can also download Engineering Economics Mcq PDf completly free.

Engineering Economics MCQ Test

1) What is called the ratio obtained by dividing 'quick assets' by current liabilities?

  • A. Acid test ratio
  • B.Turnover ratio
  • C.Solvency ratio
  • D.None of the above

2) Which of the following option is included in the financial ratios of the firm?

  • A. Liquidity ratio
  • B.Turnover ratio
  • C.Profitability ratio
  • D.All of the above

3) What do the sunk costs include?

  • A. A past expenditure
  • B.An unrecoverd balance
  • C.An invested capital that cannot be retrieved
  • D.All of the above

4) By which of the following can the more important test of the firm's liquidity be judged?

  • A. Debts ratio
  • B.Current ratio
  • C.Liquidity ratio
  • D.Quick Ratio

5) What is the other name of Present worth Annuity (PWA)?

  • A. Future annuities
  • B.Income annuities
  • C.Premium annuities
  • D.All of the Above

6) What is the interest factor, if P is the principal amount, i is the rate of interest and n is the number of periods in years?

  • A. ni
  • B.(ni - 1)
  • C.(1 + ni)
  • D.None of the above

7) What is the key to profitable operation for project cost control?

  • A. To keep the project cost equal to original cost estimate.
  • B.To keep the project cost equal to subsequent construction budget.
  • C.To keep the project cost within the cost budget and knowing when and where job costs are deviating.
  • D.All of the above

8) The declining balance method is also known as -

  • A. Modified SYD method
  • B.Double percentage method
  • C.Constant percentage method
  • D.Modified sinking fund method

9) Which of the following refers to the amount of a product made available for sale?

  • A. Good
  • B.Supply
  • C.Demand
  • D.Product

10) The capitalized cost of any structure or property is computed by

  • A. First cost + salvage value
  • B.First cost + interest of first cost
  • C.Annual cost – interest of first cost
  • D.First cost + cost of perpetual maintenance

11) Which of the following is known as an accounting term that represents an inventory account adjustment?

  • A. Standard cost
  • B.Overhead cost
  • C.Cost accounting
  • D.Cost of goods sold

12) In which book is the original record of a business transaction recorded?

  • A. Ledger
  • B.Journal
  • C.Work book
  • D.Account book

13) Which of the following refers to the present worth of cost associated with an asset for an infinite period of time?

  • A. Annual cost
  • B.Increment cost
  • C.Operating cost
  • D.Capitalized cost

14) Which of the following is the simplest form of business organization?

  • A. Enterprise
  • B.Corporation
  • C.Partnership
  • D.Sole proprietorship

15) .................. refers to the negotiable claim issued by a bank in lien of a term deposit.

  • A. Bond
  • B.Time deposit
  • C.Certificate of deposit
  • D.Capital gain certificate

16) Which of the following is used to record historical financial transactions?

  • A. Ledger system
  • B.Balance check
  • C.Bookkeeping system
  • D.General journal system

17) ...........is an example of intangible asset.

  • A. Cash
  • B.Patents
  • C.Furniture
  • D.Investment in subsidiary companies

18) What is called the process of determining the value or worth of physical property for specific reasons?

  • A. Valuation
  • B.Investment
  • C.Economy
  • D.Depletion

19) Which of the following type of bond can be redeemed before the maturity date?

  • A. Callable bond
  • B.Preferred bond
  • C.Registered bond
  • D.Incorporators bond

20) Which of the following represents the first cost in computing depreciation of equipment?

  • A. Installation expenses
  • B.Initial taxes and permit fees
  • C.The original purchase price and freight charges
  • D.All of the above

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