ENGINEERING ECONOMICS QUIZ

What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render?

Demand depreciation

Design depreciation

Physical depreciation

Functional depreciation

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The interest calculated on the basis of 365 days a year, is known as:

None of these

Ordinary simple interest

Interest

Exact simple interest

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What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal?

Interest rate

Yield

Rate of return

Return of investment

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Each financial ratio is generally compared by

A past ratio calculated from the past financial standard of the firm

A ratio developed by using the projected financial statement of the firm

A ratio of some selected firms most progressive and successful at the point of consideration

All of these

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In year zero, you invest P 10,000.00 in a 15% security for 5 years. During that time, the average annual inflation is 6%. How much in terms of year zero pesos will be in the account at maturity?

P 15,030.03

P 16,892.34

P 18,289.05

P 20,113.57

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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?

Sum-of-year digit method

Declining balance method

Sinking fund method

Straight line method

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Which is true about corporation?

The stock holders of the corporation are only liable to the extent of their investments.

It is worse type of business organization.

Its life is dependent on the lives of the incorporators.

The minimum number of incorporators to start a corporation is three.

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The ability to convert assets to cash quickly is known as ______.

Insolvency

Solvency

Liquidity

Leverage

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Probabilistic estimating of a construction project includes:

Wage scale

All of these

Labour

Productivity

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Pick up the main purpose of project cost control from the following:

To signal immediate warning of uneconomic operations

To provide a feed back to the estimator

All of these

To promote cost consciousness

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