Economics for Engineers (3140911) MCQs

MCQs of Cash Flow, Interest and Equivalence

Showing 81 to 85 out of 85 Questions
81.
Pick up the correct statement
(a) Engineering economy is a collection of mathematical techniques which simplify economic comparisons
(b) Engineering economy is a decision assistance tool by which one method will be chosen as the most economically one
(c) For understanding the engineering economy, one should be able to classify the basic terminology and fundamental concepts of economy
(d) All of above
Answer:

Option (d)

82.
The annuity which refers to a debt payment for recovering the initial amount or capital in equal periodical payments, is known as
(a) Present worth annuity
(b) Sinking fund annuity
(c) Compound annuity
(d) Capital recovery annuity
Answer:

Option (d)

83.
Annuities involve
(a) A series of payments
(b) All payments of equal amount
(c) Payment at equal time intervals
(d) All of above
Answer:

Option (d)

84.
Pick up the correct statement regarding financial statement analysis
(a) Final analysis always involves the use of various financial statements i.e., balance sheet and income statement
(b) The balance sheet is the summary of assets, liabilities and owner's equity of business at a point in time
(c) The income statement is the summary of revenues and expenses of a firm over a particular period of time
(d) All of above
Answer:

Option (d)

85.
Pick up the correct statement
(a) The ratio of total debt to share holder's equity is called debt ratio
(b) The ratio of 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 above
Answer:

Option (d)

Showing 81 to 85 out of 85 Questions