ENGINEERING ECONOMICS QUIZ

An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method

P 3,792.72

P 3,729.27

P 3,279.27

P 3,927.27

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Pick up the element of the cost from the following:

Direct labour

Direct material

All of these

Over head

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Annuities involve:

A series of payments

All payments of equal amount

All of these

Payment at equal time intervals

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Double taxation is a disadvantage of which business organization?

Enterprise

Sole proprietorship

Partnership

Corporation

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Which one of the following definitions is correct?

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

All of these

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

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

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What is defined as the reduction of the value of certain natural resources such as mines, oil, timber, quarries, etc. due to the gradual extraction of its contents?

Inflation

Depletion

Depreciation

Deflation

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What is the market situation exist when there are many buyers and many sellers?

Monopoly

Oligopoly

Perfect competition

Oligopsony

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Liquidity ratios are used:

All of these

To measure a firm’s ability to meet short-cut obligations

To obtain much insight into the present cash solvency of the firm and the firm

To compare short term obligations to short-term resources available to meet these obligations

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What is defined as an entity which makes product, good or services available to buyer or consumer in exchange of monetary consideration?

Manufacturer

Producer

Seller

Buyer or consumer

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In case of bankruptcy of a partnership,

The partnership assets (excluding the partners personal assets) only will be used to pay the liabilities

The partners personal assets are attached to the debt of the partnership

The partners nay sell stock to generate additional capital

The partners are not liable for the liabilities of the partnership

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