What is another term for “acid-test ratio”?
A. Quick ratio
B. Price-earnings ratio
C. Current ratio
D. Profit margin ratio
Engineering Economy
Engineering Economy MCQs with answers for civil engineering test preparation. Economics and engineering MCQs for civil engineering students for competitive exams.
Gross margin is the ratio of the gross profit to ____ ?
A. Inventory turnover
B. Quick assets
C. Net sale
D. Owner’s equity
Return on investment ratio is the ratio of the ____ ?
A. Cost of goods sold to average cost of inventory at hand
B. Net income to owner’s equity
C. Market price per share to earnings per share
D. All of them
True value of interest rate computed by equations for compound interest for a 1 year period is known as ____ ?
A. Economic return
B. Effective interest
C. Expected return
D. Nominal interest
Capitalized cost of any structure or property is computed by which formula?
A. Annual cost – interest of first cost
B. First cost + salvage value
C. First cost + interest of first cost
D. First cost + cost of perpetual maintenance
Flow back of profit plus depreciation form a given project is called _____ ?
A. Economic return
B. Earning value
C. Cash flow
D. Capital recovery
What refers to the saving which takes place because goods are not available for consumption rather than consumer really want to save?
A. Consumer saving
B. Forced saving
C. Compulsory saving
D. All of them
What is defined as the current assets minus inventories and prepaid expenses?
A. Return of investment ratio
B. Quick ratio
C. Profit margin ratio
D. Price-earnings ratio
Common ratio is the ratio of _____ ?
A. Current assets to current liabilities
B. Net income to owner’s equity
C. Net credit sales to average net receivable
D. Gross profit to net sales
What is an index of short-term paying ability?
A. Profit margin ratio
B. Gross margin
C. Current ratio
D. Price-earnings ratio