Civil Engineering - Engineering Economy
Exercise :: Engineering Economy - Section 1
6. |
Pick up the correct statement from the following: |
A. |
The change in the amount of money over a given time period is called 'time value' of money, a most important concept in engineering economy. | B. |
The manifestation of the time value of money is termed as interest. | C. |
Interest on borrowing = present amount owed - original loan | D. |
The original investment (or loan) is referred to as principal. | E. |
All of these. |
Answer: Option E
Explanation:
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7. |
Which one of the following is included in financial ratios of the firm ? |
A. |
Profitability ratio | B. |
Liquidity ratio | C. |
Turnover ratio | D. |
Ratio of overall performances | E. |
All of these |
Answer: Option E
Explanation:
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8. |
Pick up the correct statement from the following: |
A. |
The financial ratio summarises some aspect of the firm's financial condition at the time of preparing a balance sheet. | B. |
Both the numerator and denominator of financial ratios come directly from the balance sheet. | C. |
Income statement ratios compare one 'flow' item from the income statement to another flow item from the income statement. | D. |
Income statement ratios compare a flow item from the income statement to another flow item form the income statement | E. |
All of these |
Answer: Option E
Explanation:
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9. |
Refer to the cash flow diagram of uniform gradient in a cash flow (in the given figure), the gradient is :
 |
A. |
Rs 10000 per year | B. |
Rs 15000 per year | C. |
Rs 20000 per year | D. |
Rs 25000 per year |
Answer: Option D
Explanation:
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10. |
In the cash-flow diagram shown in the given figure
 |
A. |
Equal deposits of Rs 3000 per year (A) are made, starting now. | B. |
The rate of interest is 10% per yearaccount | C. |
The amount accumulated after the seventh deposit is to be computed | D. |
All of these |
Answer: Option D
Explanation:
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