Civil engineer objective questions – Engineering Economics (Section-8)

51.What is normally used to compare alternative that accomplish the same purpose but have unequal lives?

a) Capitalized cost method

b) Present worth method

c) Annual cost method


52.What method is often used in municipal project  evaluations where benefits and costs accrue to different segments of the community ?

a) Annual cost method

b) Benefit-cost ratio

c) Rate of return method


53. What refers to an imaginary cost representing what will not be received if a particular strategy is rejected?

a) Opportunity cost

b) Ghost cost

c) Horizon cost

d) Null cost

54.What is the factor name of the formula (1+i)^-n ?

a) Uniform gradient future worth

b) Capital recovery

c) Single payment present worth

d) Single payment compound amount

55.What is the factor name of the formula[i(1+i)^n]/[((1+i)^n)-1] ?

A) Uniform series sinking fund

b) Capital recovery

c) Single payment present worth

d) Uniform gradient future worth

56.What is the simplest form of business organization?

a) Sole proprietorship

b) Partnership

c) Enterprise

d) Corporation

57. Double taxation is a disadvantage of which business organization?

a) Sole proprietorship

b) Partnership

c) Enterprise

d) Corporation

58.In case of bankruptcy of a partnership            ?

a) The partners are not liable for the liabilities of the partnership

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

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

d) The partners nay sell stock to generate additional capital

59.Which is true about partnership?

a) It has a perpetual life

b) It will be dissolved if one of the partners ceases to be connected with the partnership

c) It can be handed down from one generation of partners to another

d) It capitalization must be equal for each partner

60.Which is true about corporation?

a) It is worse type of business organization.

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

c) It life is dependent on the lives of the incorporators.

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

61.What is another term for “current assets” ?

a) Fixed assets

b) Non-liquid assets

c) Liquid assets

d) Ccash

62.What is an accounting term that represents an inventory account adjustment ?

a) Cost of goods sold

b) Cost accounting

c) Standard Cost

d) Overhead cost

63.What is the change in cost per unit variable change called ?

a) Variable Cost

b) Incremental Cost

c) Fixed Cost

d) Supplemental Cost

64.What is used to record historical financial transactions?

a) Bookkeeping system

b) Ledger system

c) Balance system

d) General journal system

65.What is a secondary book of accounts, the information of which is obtained from the journal is called?

a) Balanced sheet

b) Ledger

c) Worksheet

d) Trial balance

66.The original record of a business transaction is recorded in this book     ?

a) Work book

b) Journal

c) Ledger

d) Account book

67.All the proceeds which are received by the business as a result of the sale of goods is called     ?

a) Net income

b) Gross income

c) Net revenue

d) Total sales

68.All are classified under direct labor expenses EXCEPT one. Which one?

a) Inspection cost

b) Testing cost

c) Assembly cost

d) Supervision cost

69.What is used when a quick estimate of the doubling time for the invested money is needed?

a) Rule of 48

b) Rule of 36

c) Rule of 24

d) Rule of 72

70.A machine costs of P 8,000 and an estimated life of 10 years with a salvage value of P 500. What is its book value after 8 years using straight line method?

a)  2,000.00

b) P 2,100.00

c) P 2,200.00

d) P 2,300.00

71.ABC corporation makes it a policy that for any few equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method?

a) 7 years

b) 8 years

c) 9 years

d) 10 years

72. A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan?

a) P 6,999.39

b) P 6,922.93

c) P 6,222.39

d) P 6,922.93

73. Miss Calledo deposited P 1,000 P 1,500 and P 2,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a saving account which earned 10% per annum. How much is in the account at the end of the 4thyear ?

a) P 4,800.00

b) P 4,820.00

c) P 4,860.00

d) P 4,840.00

74. A P 1,000,000 issue of 3% 15-year bond was sold at 95%. What is the rate of interest of this investment?

a) 3.0%

b) 3.4%

c) 3.7%

d) 4.0%

75. A P 1,000, 6% bond pays dividend semiannually and will be redeemed at 110% on june 21, 204. It is bought on june 21, 2001 to yield 4% interest. Find the price of the bond?

a) P 1,122.70

b) P 1,144.81

c) P 1,133.78

d) P 1,155.06

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